A rental agreement is a written contract of renting between a property’s owner and a renter who wants to occupy the space temporarily. The laws and restrictions that must be followed between the landlord and the tenant while renting a home are laid out in a rental agreement, which is a formal contract.
Despite the generally cordial landlord-tenant relationship, it is a good idea to have a written rental agreement. This way, you’ll have documentation if something needs to be fixed or problematic due to complaints and misunderstandings.
How To Execute a Rental Agreement?
The lessor or lessee of a residential property may employ the rental agreement or lease deed format. The lessor and lessee sign the document to show that both parties accept the restrictions imposed by the lessor. It is a legal document with a binding legal effect that courts may cite in the event of a dispute.
Print the lease agreement on paper bearing a non-judicial stamp with a face value of at least Rs. 100. The lessor and lessee often sign the rental agreement once the security deposit is paid for the rental property. The agreement is often signed in two copies, each of which each party keeps.
Terms of Rental Agreement
One of the most prevalent characteristics of renting a home in India is the popularity of 11-month rental agreements or licence agreements. Most landlords choose to enter into rentals for 11 months since there are two contracts dealing with property rental in India: a lease agreement and a leave & licence agreement.
Rental agreements longer than a year must follow stringent rent control regulations, most of which are in the tenants’ favour. Rent control rules prevent landlords from overcharging renters and shielding tenants from arbitrary or unjust evictions. A lease makes it more difficult for the landlord to evict a tenant because the renters now hold the landlord’s ownership stake in the property. Therefore, landlords only like signing rental agreements for 12 months at maximum.
Rental or Licensing Agreements
On the other hand, a rental agreement or licence agreement is 11 months, with the possibility of a renewal at the time of the agreement’s expiration. An 11-month rental agreement is merely a permit allowing the tenant to use the property for a brief period.
As a result, most states’ rent control regulations need to be included. Additionally, leases longer than 11 months give the landlord more options for evading the renter from the property. As a result, most landlords sign rental agreements 11 months long with the possibility of renewing at the end of the term.
Contents of The Rental Agreement
- The property’s description.
- The names of the landlord, the renter, and/or any representatives.
- The rent payment amount, due dates, grace period, and late fees.
- The method of paying rent.
- How to end the contract before it expires, as well as any fees that may apply.
- The security deposit’s size and the account in which it is kept.
- The utilities provided by the landlord and, if there will be a fee, how that fee will be calculated.
- Premises amenities that the renter is allowed to utilise, such as the pool, security features, etc.
- Laws and ordinances govern things like pets, noise, and the consequences for breaking them.
- The processes for handling emergency requests and tenant repair requests.
- A listing of available parking places, including any designated spots.
Common Terms Included in The Rental Agreement
- Deposits: The amount (and any applicable purpose) of any necessary deposits, as well as the terms governing their return or adjustment after the rental period
- Repairs and maintenance: The landlord or the tenant is responsible for repairs and maintaining the property.
- Rent: The payment given by the renter to the landlord as compensation for the rented property.
- Duration: The length of time the lease will be in effect.
- Utilities: Which ones are covered by the rent, and which are the tenant’s responsibility to pay for?
- Insurance: In business rental agreements, it is common to specify whether the tenant is required to insure the property.
- Use restrictions: The parameters governing how the renter may use the property and its intended use.