Even today, a large number of people live in rented houses in big and small cities. Before taking a house on rent, a rent agreement is necessary between the landlord and the tenant. Its purpose is to protect the interests of both the landlord and the tenant.
The landlord retains legal rights over his house, while the tenant does not have to spend on the maintenance of the house. This responsibility lies with the landlord. But, many times the rent agreement is made keeping in mind the interests of the landlord. This is not right. Leave and License Rental Agreement can be a solution to this problem. Let us know about this in detail.
What is Leave and License rental agreement?
This is an agreement between the landlord and the tenant. This includes the terms on which the property is let. These include the address, size and type of the house. Apart from this, monthly rent, security deposit, duration of the agreement and terms for terminating the contract are also included.
“The agreement needs to be registered,” said Sagar Kadam, partner, DSK Ligatar. If there is no agreement, the landlord can suddenly increase the house rent. The most important thing is that if there is no rent agreement, you cannot claim house rent allowance.
How should the rent agreement be?
The rent agreement should include a fixed date for payment of rent. It should also be mentioned what will be the penalty for delay in paying the fare. It should also be mentioned that the landlord may increase the rent after a certain period.
It should be clear in the rent agreement who will be responsible for paying the maintenance charges as well as water and electricity bills. Experts say that if a person is taking a house on rent, then it is important for him to read the agreement properly and understand it.
What precautions should a homeowner take?
The biggest worry of the landlord is that the tenant should not take possession of the house. Therefore it is necessary for the rent agreement to be registered. If not registered, it can be misused. Aditya Khadaria, co-founding partner, LX Eternal Practices, said that if the rent agreement is not registered, the tenant may refuse to vacate the house. Therefore, there must be a condition for termination of the agreement in the rent agreement.
Framing of the rent agreement is very important
Most lawyers who frame rent agreements have a ready-made format for it. But, this does not mean that you cannot change its provisions. You and the landlord can mutually agree to include such terms and provisions in the agreement that are beneficial to both of you.
