A rent agreement is an agreement between the landlord and the tenant renting it. The agreement outlines the terms and conditions of renting the property. It includes the property description (address and type), the monthly rent, deposit, purpose of the property, as well as the term of the lease. The contract also outlines the conditions that allow for the termination of the rental agreement. Both parties agree on the terms of the contract, which are binding after the agreement has been signed.
The following are the essential clauses that should be included in a rent agreement—
- Lock-in period: This is the period during which neither the landlord nor the tenant can end the lease agreement.
- Pets: Just because you have taken a large house doesn’t mean pets will be allowed. Regardless of whether you have taken a villa or a 1 bhk flat on rent, if the owner doesn’t allow you to have pets, you won’t be able to bring them. However, for landowners to be sure there is no violation of this prohibition, they should get a clause linked to it included in the agreement. The agreement should clearly state whether or not pets are allowed on the property.
- Late payment fees: The landlord may demand a small fine if the tenant fails to pay the rent by the due date.
- Food preferences: The landlord should inform tenants if they can prepare non-vegetarian meals in their homes.
- Overstay: The landlord may charge a daily fee if the tenant continues to live in the rental property after the lease ends.
- Painting, maintenance, repairs: These should all be covered in the contract. The contract should clearly state the landlord’s responsibilities and those of the tenant.
The importance of a rent agreement—
- There are many situations that lead to friction between landlords and tenants. This can also sometimes lead to a breakdown in the relationship between the parties. Rent agreements can help make things more manageable. This is because it keeps the relationship between landlords and tenants healthy by restricting them to surpass lawful limits. The rent agreement protects the rights and interests of both parties. While the landlord is able to preserve the property, the tenant is protected from any illegal claims.
- A rent agreement informs others about the ownership of the property. The rent agreement can be used as legal evidence to protect the owner against future lawsuits. Both the owner and the tenant may produce this document to defend themselves in the event of a dispute. One thing to remember when getting into a lease agreement is that an oral lease agreement is not legal. It is best to agree to a written contract.
- The governments of several Indian states have enacted rent control laws to stop landlords from overcharging tenants or protect them against sudden evictions. The state government has put this check to control arbitrarily increased rents. The law currently in force sets the maximum rent and the conditions under which tenants can be evicted.
Both the landlord and tenant will enjoy the benefits of a rental agreement. This document is written keeping the interests of both parties in mind and can be used as admissible evidence to the law.
But what happens if you don’t have any rental agreement?
- What does it mean for the tenant?
Your landlord may give you an eviction notice without giving you any prior information. Even though rent slips are tangible evidence that you have occupied the property legally, only a rental agreement can be used as evidence in court in case of a dispute with the landlord.
A landlord may increase rent if there is no written agreement. The tenant can also move to another place at any time without informing the landlord. And this can happen because there is no rent agreement that outlines the procedure of leaving the property.
You also cannot apply for tax exemption via HRA without a rental agreement.
- What does it mean for the landlord?
Tenants may be able to reap many benefits over landlords without a rental agreement.
In the absence of a rental agreement, landlords cannot force tenants to pay rent. The landlord can’t hold the tenant responsible if there is any damage to the property/appliances in the flat.
If there is no rental agreement, a tenant may forcibly extend their stay.
A rent agreement also states the penalty for late rent payments. When there is no lease agreement or rental agreement, tenants can’t be forced to pay any additional charges for late payment or overstay.
Renting without a contract is possible. But is it legal?
Yes, you can legally stay at a rental property without having to create a rental agreement.
Although it is highly recommended that both parties have a rent agreement, Indian law allows a landlord and tenant to have a successful relationship without the need for a written agreement.
Every person must carefully read a rental contract before signing it. And both the parties must adhere to its terms once the agreement has come to force. The number of landlord-tenant disputes can decrease considerably if each party takes it as mandatory. If you need a house on rent and want to be sure all legalities will be taken care of well, then take the services of Stanzaliving.