On The Other Hand

A Rent Agreement is a legal document signed in between a proprietor and a renter to lease a residential or commercial property. The individual who owns the residential or commercial property is referred to as the property owner and the person who takes the residential or commercial property on rent is understood as the occupant. A rental agreement is extremely crucial as it contains all the terms and conditions connected to renting a specific residential or commercial property in written kind. Renting a residential or commercial property without a composed contract is really unsafe as it can cause legal problems in the future. An oral lease contract is not lawfully allowable so if there is an oral agreement in between property manager and tenant either party can repudiate the arrangement in such case the other party has to prove the material of the arrangement which is quite difficult.


A rent agreement is typically prepared by the lawyer with the mutual permission of the renter and property manager, but it must be drawn up with the shared authorization of both celebrations and signed by both celebrations in the presence of two witnesses. A composed rental arrangement acts as evidence of a shared agreement in between the celebrations and is admissible as proof in court and the regards to this contract can not be changed without the permission of both celebrations.


KINDS OF RENT AGREEMENT


A lease contract is normally of three types particularly rent agreement, lease contract, leave and license arrangement. Among the three types of a rental agreement, whichever kind of contract is gotten in into, both celebrations are bound to comply with its terms. If the regards to the rental arrangement are breached, the other celebration can litigate to recover its due rights. However, the three types of rental agreements are talked about listed below;


• Rent arrangement: A rent arrangement is a conditional legal agreement in between the property owner and the occupant. It is a mutual contract in between the property owner and tenant that enables a problem-free settlement between the parties in the future.


• Lease arrangement: A lease deed is a type of legal file that transfers ownership of a residential or commercial property for a specific amount of time in consideration of a guaranteed cost. A lease contract is typically made for the long-term rental of a residential or commercial property.


• Leave and license contract: A leave and license arrangement is a legal file in which a residential or commercial property owner permits a person to utilize his residential or commercial property for a particular time period in exchange for a specified license cost, it does not move the ownership of the residential or commercial property. A leave and license contract in between landlord and tenant is frequently utilized to rent a residential home.


BENEFITS OF RENT AGREEMENT


The advantages of a written rent agreement are as follows:


• A written rent agreement is made with the approval of the tenant and the proprietor.


• The terms of a rent contract are set upon the approval of both parties.


• It protects the rights of both parties and likewise secures them from future disputes.


• It offers security to the proprietor's residential or commercial property and protects renters from unlawful claims by property managers.


• It is permissible as evidence in court.


IMPORTANT CLAUSES OF THE RENT AGREEMENT


A lease agreement is prepared with the authorization of both celebrations. However, the provisions that need to be included in a rental agreement are discussed listed below.


• Details of celebrations: This is the first clause of a rental contract. This provision determines the celebrations to the arrangement. In order to identify the celebrations to the rent arrangement it is important to discuss their name, age, religious beliefs, occupation, address, etc in the arrangement. If among the parties to a rental contract is a company, the name and address of that company must be consisted of in the contract and also the name, age, daddy's name, profession, address, and classification of the person representing the organization must be pointed out.


• Description of leased residential or commercial property: An extensive description of the residential or commercial property in respect of which a rental arrangement is being prepared must be discussed. It is also really essential to point out that this residential or commercial property is supplied or unfurnished, if provided then what furnishings remains in the residential or commercial property needs to be mentioned. If a rent contract does not provide an extensive description of the residential or commercial property, there stays a high possibility of future conflicts.


• Tenure of arrangement: The period of a rental arrangement depends upon both . The tenure of the tenancy arrangement is not fixed, it can never ever be stated that the tenancy of a domestic home does not go beyond 11 months. However, when preparing a rental contract, it is extremely crucial to specify its duration and likewise the start and end dates of the contract.


• Purpose of rent: It is very important to mention the function for which an occupant is renting the residential or commercial property and also it is extremely crucial to mention that no anti-social activities can be done on the residential or commercial property. If the function of the rent is not specified, the tenant will do as he pleases in the residential or commercial property and the property manager might face problems in the future.


• Rent and security deposit: The month-to-month lease of the residential or commercial property and the security deposit belong of the rental arrangement which need to be clearly mentioned and it is also crucial to discuss the specific date on which the rent will be paid every month. If there is any condition of increase in rent after a given period then it must be mentioned.


• Maintenance cost: Nowadays, the trend of living in flats has increased but the owner has to pay month-to-month maintenance charges to preserve the typical area of the flat. Maintenance expenses should be paid for living in a flat, so the tenancy arrangement need to specify who will pay the upkeep costs between the owner and the renter.


• Lock-in duration: If there is a condition that the renter can not leave your house for a particular period or the proprietor does not ask the occupant to abandon your home then this lock-in period must be specified in the contract.


• Duties and commitments: The tasks and commitments of both parties should be clearly mentioned in a rental agreement. Both parties will be bound to abide by the conditions mentioned in the agreement. The duty of the tenant is to pay lease on time, look after the residential or commercial property and maintain peace and order. On the other hand, the duty of the proprietor is to keep the house in a rentable condition and keep the water and electrical power supply on time.


• Renewal, termination, and notification duration: An arrangement for an extension of the lease contract should be consisted of in the agreement. The contract must define whether the renter can renew the contract at the end of the term.


The contract must include an option that the tenant can terminate the rental arrangement before completion of the term and it can likewise mention that the property owner can ask the occupant to cancel the arrangement before completion of the term and leave the premises if the proprietor needs the residential or commercial property. In this case, the celebrations shall notify each other with a maximum of two months' composed notice. Both celebrations might equally decide on an extension, renewal or notification duration before the agreement is prepared.


• Dispute resolution: Among the most vital parts of the arrangement is the method to deal with the issue. Disputes can occur between property owners and renters at any time, so it is necessary to specify in the contract how disputes can be resolved. The court, arbitration, and conciliation are the most common ways to resolve conflicts between property owners and tenants.