A rental agreement is an official contract signed between a property owner and a tenant. With this, the tenant takes possession of that property for a fixed time line. Let us know about it in detail.
There are two parties in a rent agreement. In this, the first party is the owner/landlord of the property, who is giving his property on rent. And the second party is the tenant who is the person in possession/living at the rented property till the end of the contract. A rent agreement is also called rent deed and lease deed. It contains basic details of the residential property, property owner, tenant, rental period and amount. The rent agreement is usually in writing.
This is prepared on stamp paper. It is important to make a rent contract as it helps in preventing disputes between the landlord and the tenant. It also insures the safety of the property for the landlord. And also protects the tenants from having to deal with any unwanted demands from the landlord. There are two types of rental contracts in India. There is a lease agreement that lasts for a minimum of 12 months. It is governed under the rent control laws made by the state government. And the second is a lease and license contract for up to 11 months which does not come under the rent control law.
What happens in the rent agreement?
A rent agreement contains the names of the landlord and the tenant and their agents, along with details of the property. The rent agreement contains the rent amount and due date of payment, grace period and late fees. Along with this, the method of payment of rent is also mentioned in it.
The amount of security deposit is also mentioned in it. The details of the utilities provided by the landlord and the fees for these are also written in it. Mentions whether the tenant is entitled to use the facilities on the premises such as swimming pool, security system etc. Along with this, rules like pet rule, noise rule and penalty for violation are also written in the rent agreement. Details about the parking space to be used for parking and procedures for handling repair requests and emergency requests are also mentioned in the rental agreement.
Terms included in the rent agreement
Rent
In return for the property given on rent, the tenant makes monthly payments to the landlord. This is called rent.
Deposit
The required amount of deposit remains in effect until the end of each rental period. After the end of its period, the landlord returns it to the tenant.
Terms of Use
The details of terms and conditions regarding the use of the property are mentioned in the rent agreement.
Utility
How many utilities are there in the premises and how many types of utilities can the tenant use under the rent? Its details are mentioned.
insurance
It is mentioned in the commercial rent agreement. Under this, the tenant has to get the property insured.
Repair and maintenance
Whether the landlord or tenant is responsible for the repair and maintenance of the property is mentioned in the rent agreement.
