Lease Agreement : 5 Clauses that you Must Have in your Rent Agreement

There are a few key provisions in the rental agreement to be aware of when renting an apartment or a home in India.

What is a Rent Agreement?

The rent agreement, which codifies the contract between a landlord and tenant, is a significant tool that may be used or abused. If the rent agreement is correctly formalised, it benefits both the landlord and the renter and fosters a positive, cooperative relationship. However, it should be established with all applicable laws and requirements. In this nation, notarized stamp papers are frequently used to create rental agreements. There is a potential that either party will violate this agreement, even though it constitutes a binding legal contract. As a result, the lease agreement needs to be recorded at the neighbourhood sub-office. registrar’s It can be abused by either side if registration is not required. The leasing contract should also include strong terms and provisions that safeguard the interests of both parties.

Why do people sign a rent agreement?

Many employees abandon their hometowns and go to other places in order to study, work, do business, or live better. They must first find a place to stay in the new city. Most people choose to rent an apartment because it can be difficult to purchase a property as quickly as you move to a different location, particularly in metro areas. However, it is advisable to read the terms and conditions and sign a rent agreement before renting a house.

Five important clauses that should be included in a rent agreement,

1. A clause for Rent payment, security deposit, and additional fees

The amount of rent you must pay each month and the deadline by which it must be paid should be expressly stated in the agreement. Landlords typically request a security deposit, which is typically one or two months’ worth of rent. Include the security deposit amount and the due date for its refund in the contract. Make sure the contract specifies everything else you’ll be expected to pay for, including energy, water, PNG, upkeep, and so forth. The existence of a separate metre for utility connections, on the basis of which you must pay bills, or the requirement to pay a fixed sum each month should also be made clear.

2. A clause for lock-in period

The agreement should expressly state what happens if either party terminates it before the lock-in period is over. Usually, the landlord keeps the security deposit if the tenant must leave the property before the lock-in time is up. Similarly, in addition to the real security deposit reimbursement, the landlord is required to pay the tenant compensation if she decides to vacate the property before the lock-in period is up. This amount must equal the security deposit.

3. Transparency for all the restrictions

Many landlords forbid renters from having pets. Before signing a lease on a rental home, bring up your pet. A few people also object to tenants who aren’t vegetarians. You should also be clear on whether you are permitted to utilise the patio, parking spot, garden, or any other facilities offered by the community. The hardcopy of the lease Is normally kept by the landlord, but you must always retain a copy of it.

4. A clause that specifies the rental terms

The rental agreement is in force between these dates. Exact dates should be included; avoid using generalisations like “the lease is good for six months or one year.” You should specify the precise start and end dates of the lease, including the day, month, and year, in both cases. After the first lease period, many yearlong leases automatically change to month-to-month rentals.

5. A clause that specifies the tenant responsibilities

The duties of a tenant are described in this clause. According to landlord-tenant legislation, tenants have specific obligations to maintain the leased property. Tenants are responsible for keeping their property safe and clean. They must adhere to all building and housing codes and must not harm the rental. This lease clause shall contain the precise tenant obligations set forth under the landlord tenant legislation of your state.