If you have thought of out a property in India on Rent or already lived in rented accommodation, you will get to known here with what is a rent agreement to rent your property. But do you know why is it 11 month?
Why do every landlord need rent agreements to rent a property?
In this new age, a written rental agreement is critical when you want to rent your property. It's a tool to protect both the landlord and the tenant. A written lease provides crucial evidence for the landlord that he (or she) owns the property and the person staying in property is merely renting the place. For the tenant, a written rent agreement protects against any dispute and unlawful financial demand by the landlord.
A written rental agreement is essential if the tenant provides a security deposit. It acts as written proof that the security deposit was paid which is to be fully refunded at the end of the duration of rent. Vice-versa, a written rent agreement is critical for the landlord if he (or she) is not taking any advance as a security deposit. At that time, a landlord is protected against any unlawful demands of financial compensation by the renter.
What's the expected duration of a rental agreement in India?
Rental agreements for residential housing usually last for 11 months in India. Landlords generally prefer an 11-month duration to avoid rental control laws. Rental control laws were signed by most state governments in India to protect the tenants from unfair eviction and to overcharge by the landlord. You can learn more about Rental Control Laws on the website of the Indian government.
What should be included in a rental agreement to rent a property?
A rental agreement in India should typically consist of:
- The full legal name of the parties, the landlord and the tenant.
- Start and End date of the rent agreement.
- Rent: Amount per month.
- The date on which the Rent has to be paid.
- A penalty clause for late payment of Rent, if any.
- Medium of charge for the Rent.
Extra Charges: what is included in the Rent?
- Whether the utilities like electricity, water and gas are included or not? If not, then who is responsible for it?
- Who is responsible for the additional services like garbage collection, club membership fee (if any), parking charges (if any), maintenance charges (if any), society charges (if any), cable bill (if any) and landline phone bill (if any) included in the Rent?
Security Deposit:
Any security deposit must be mentioned in the rental agreement. It should also be noted that the deposit is to be fully refunded at the end of the rental agreement. However, a landlord would like to include a "damage" clause allowing him (or her) to deduct an amount from the security deposit. This is to pay for damages done to property by the tenant during their stay at the premises. This is standard practice.
- Standard conditions for renting the place: - Here, it clearly outlined how the tenant should behave and take care of the property.
- Standard conditions of eviction by the landlord: - it should be clearly outlined in which states the landlord has the right to evict the renter.
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