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Preacautions/Questions to ask while renting a house to a Pre-school

Discussion in 'General Discussions' started by swaran, Mar 22, 2013.

  1. swaran

    swaran IL Hall of Fame

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    Hi All,

    We have purchased a house and planning to give for rent.Yesterday a pre-school oraganisation called Daffodil(owned by G2 India capital) has asked for rent.

    I would like to know what are the questions that we have to ask/know before giving the house for rent to a pre-school.

    This is the website
    Welcome to Daffodils

    We have still not started with the discussion,neither we know their plans but they have mentioned that they could get better rent than what we expect.

    But i would mainly like to know the disadvantages/things to take care before letting out the house for rent..Its a newly built house ,we have not even stayed for a day and also we would not be able to stay in the same city for the next few years ,hence planned to give for rent

    Now ladies,i need your help..is it wise to rent it to a pre-school???
    What all should i ask when we have a discussion with them?
    On what basis should the rent be calculated???
    Incase all turns well and we are convienced,how to go about filling the agreement???

    Please help me asap.

    Thanks in Advance
     
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  2. swaran

    swaran IL Hall of Fame

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    Hi all

    i am waiting for your replies..
    please help!!!
     
  3. Rakhii

    Rakhii Moderator IL Hall of Fame

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    Swaran, renting out to a pre-school will make this a commercial property (as the tenants are running a business). Since this is a residential property being given to a commercial purpose, my suggestion would be to involve a property manager. Even though it would cost, you will be on a safer side. Since you will not be in the same city, its better to have a property manager who will keep an eye. He will also ask all the necessary questions, including the rent negotiations.

    I am guessing the insurance for the property would also go up as its being used by a pre-school. But the rent can be charged accordingly. I am sorry, you need a professional advise here.
     
  4. Saisakthi

    Saisakthi IL Hall of Fame

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    Dear Swaran Sister,

    Listing out Pros and Cons for you to think:

    Yes, as they have informed, you will get a substantial increase (Twice/even thrice) in rent than from a tenant who uses it for Living purpose

    Pre School would want you to permit them to make changes in the walls with colourful paintings Life size (animals/ alphabets... Whatever) (you would have seen how preschool looks colorful for children.

    Preschool will seek your permission and fix indoor/ outdoor games like seesaw, Climbing the ladder, so many updated ones these days...

    They may want to sign a Lease Agreement with you for a couple of years which you have to decide on when you will need the house.. and accordingly charge them the DEPOSIT

    In case you don't plan to come back for quite sometime and you will not need the house, then it is fine, if it is within 2/3 years you want for your own purpose, then it is completely ruled out, as the investment made on interior and other immovable games they have fixed they may not agree to quit even though they would agreed with you in the beginning that would move with some stipulated period's notice.

    All Utility Tariffs will be commercialized, our government formalities will take you to task and would make you loose patience to reconvert to residential tariff.

    Maintenance may or may not be up to the mark as the inmates will be young children and Primary teachers/ Ayyahs.

    Apart from the cupboards you have made, they would add soft boards, picture boards, carpentary work to hang charts, Display board and many others in every room (read:classroom)

    Kitchen area will be utilized as Pantry or dining or stock room which will loose its serenity.

    Once they reach Fame or strength in that vicinity even after the expiring term, they may wish to continue if they DONT find another property like yours and will not want to loose their Business

    List adds on... I guess shall stop here and mention that if you have wholeheartedly put your hard earned money in every brick and mortar, please diplomatically say a POLITE NO

    Oh!!! If you are heart and soul is not into it and feel with the huge money which I get in renting out to preschool (READ:Commenrcial) rather than a residence I can buy another property when we come back then GO AHEAD with a YES :)

    There is another category of people who purchase or build Property for just investment purpose and just need an appreciation after X no of years (who will never R2I/ settled abroad) even then it can be a YES :)

    I do not know were you fit IN and hence leave it to you to decide, this is JMO, Best wishes.. BTW your Title was different but I have deviated.. Sorry

    Note: whatever, have the agreement done through a Professional and have a representative to have an eye to update you... if you are not a frequent visitor to India.

    BEST WISHES... May Baba bless you and guide you in the right path... Thanks for reading...
     
  5. swaran

    swaran IL Hall of Fame

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    Dear Saisakthi and rakhii,

    thanks a lot for your response..i was eagerly waiting to know these details...
    will pass these details to my husband
    thanks thanks
     

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