4 terms that must be included in your rental agreement
Many individuals leave their home city to study, work, do business, or live a better lifestyle in another city. The first thing they require in the new city is an area to reside. Despite the complexity of purchasing a property to live in as quickly as you relocate to a different place, particularly in metropolises, most individuals opt for a rented apartment. However, before renting a house, it is advisable to understand the terms and circumstances and sign a lease agreement.
A rent agreement guarantees that you have a legal remedy if there is a dispute between you and your landlord, which is why the terms in the agreement must be carefully read. Here are a few essential rent agreement provisions.
- Rent, security deposit, and other payments
The agreement must explicitly state the monthly rent you must pay each month as well as the deadline for payment. Most landlords need a security deposit, which is normally equivalent to one- or two months of rent. Specify the security amount and when it will be reimbursed in the agreement.
Furthermore, make sure the agreement specifies what else you’ll have to pay for, such as energy, water, PNG, repairs, etc.
- Agreement tenure and renewal requirements
Rent agreements are usually determined for 11 months. One can, however, engage in an arrangement for a longer length of time. Ensure certain that the tenure is explicitly indicated.
Furthermore, make sure that the lock-in time, during which neither the renter nor the landlord can dissolve the lease, is included in the agreement. “The agreement must explicitly state the repercussions of either side terminating it before the conclusion of the lock-in period. When a tenant must quit the property before the conclusion of the lock-in term, the landlord often forfeits the security deposit.
In addition, in locations such as Mumbai, real estate brokers include stipulations in the initial agreement relating to the payment of brokerage at the time of renewal. Consider this condition and determine ahead of time how much brokerage will be charged for the renewal and who will pay it.
- Fixtures and fittings list
The agreement must include information on the property you are renting, such as the floor or apartment number, size of the property, floor area, bedrooms, living space, kitchen, etc. If the property is outfitted, create a note of all the fixtures and fittings such as mattresses, couches, desks, stools, closets, number of fans, air conditioners, lighting, etc.
- Agreement registration
Preferably, the rent arrangement must be registered. Unregistered rent agreements are not regarded as main evidence by the court in the event of a disagreement, and you may be required to present other additional documentation to defend your position.
To register a lease agreement, you must pay fees such as stamp duty and a registration fee. The fees are normally divided by renters and landlords, although this is specified in the agreement. Furthermore, it should be clear who will pay fees like legal fees, if any, or commission to brokers.
Disclaimer: The views expressed above are for informational purposes only based on industry reports and related news stories. PropertyPistol does not guarantee the accuracy, completeness, or reliability of the information and shall not be held responsible for any action taken based on the published information.
