A Rent Agreement is a legal document signed between a property owner and a tenant to rent a residential or commercial property. The person who owns the residential or commercial property is called the proprietor and the individual who takes the residential or commercial property on lease is known as the tenant. A rental contract is extremely essential as it contains all the conditions related to leasing a specific residential or commercial property in written kind. Renting a residential or commercial property without a written contract is really dangerous as it can lead to legal problems in the future. An oral lease agreement is not lawfully allowable so if there is an oral arrangement between property owner and tenant either party can repudiate the contract in such case the other party has to show the content of the agreement which is rather difficult.

A lease contract is generally prepared by the attorney with the shared consent of the tenant and landlord, however it must be prepared with the shared authorization of both parties and signed by both parties in the existence of 2 witnesses. A written rental agreement acts as evidence of a mutual agreement in between the parties and is acceptable as proof in court and the terms of this contract can not be changed without the approval of both celebrations.

KINDS OF RENT AGREEMENT

A rent arrangement is normally of 3 types specifically lease agreement, lease contract, leave and license agreement. Among the three types of a rental arrangement, whichever type of agreement is participated in, both parties are bound to abide by its conditions. If the terms of the rental arrangement are broken, the other party can go to court to recuperate its due rights. However, the 3 types of rental contracts are talked about listed below;

• Rent contract: A rent contract is a conditional legal agreement between the landlord and the tenant. It is a shared contract between the proprietor and tenant that permits for a hassle-free settlement between the parties in the future.

• Lease agreement: A lease deed is a type of legal file that moves ownership of a residential or commercial property for a specific amount of time in consideration of an assured cost. A lease contract is usually produced the long-lasting rental of a residential or commercial property.

• Leave and accredit contract: A leave and license contract is a legal file in which a residential or commercial property owner enables a person to use his residential or commercial property for a particular duration of time in exchange for a defined license charge, it does not transfer the ownership of the residential or commercial property. A leave and license arrangement in between proprietor and renter is typically utilized to rent a domestic property.

BENEFITS OF RENT AGREEMENT

The advantages of a written rent contract are as follows:

• A composed rent agreement is made with the authorization of the renter and the property manager.

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

• It secures the rights of both parties and also safeguards them from future conflicts.

• It provides security to the landlord's residential or commercial property and safeguards occupants from unlawful claims by property owners.

• It is admissible as evidence in court.

IMPORTANT CLAUSES OF THE RENT AGREEMENT

A rent agreement is prepared with the approval of both parties. However, the stipulations that should be consisted of in a rental contract are discussed listed below.

• Details of parties: This is the very first provision of a rental contract. This clause determines the celebrations to the contract. In order to recognize the celebrations to the rent agreement it is necessary to discuss their name, age, faith, occupation, address, and so on in the contract. If among the parties to a rental agreement is an organization, the name and address of that organization must be consisted of in the agreement and likewise the name, age, father's name, occupation, address, and designation of the person representing the company needs to be discussed.

• Description of rented residential or commercial property: An extensive description of the residential or commercial property in respect of which a rental agreement is being prepared need to be pointed out. It is likewise very essential to point out that this residential or commercial property is provided or unfurnished, if provided then what furniture remains in the residential or commercial property must be discussed. If a rent contract does not offer a thorough description of the residential or commercial property, there stays a high possibility of future disputes.

• Tenure of agreement: The tenure of a rental contract depends upon both parties. The period of the occupancy contract is not repaired, it can never be said that the tenancy of a house does not exceed 11 months. However, when preparing a rental agreement, it is really essential to define its duration and also the start and end dates of the arrangement.

• Purpose of rent: It is important to discuss the purpose for which a tenant is leasing the residential or commercial property and likewise it is very crucial to point out that no anti-social activities can be done on the residential or commercial property. If the purpose of the rent is not defined, the tenant will do as he pleases in the residential or commercial property and the property manager might deal with problems in the future.

• Rent and down payment: The month-to-month rent of the residential or commercial property and the security deposit belong of the rental arrangement which should be plainly pointed out and it is also crucial to mention the particular date on which the rent will be paid monthly. If there is any condition of boost in rent after a specific duration then it need to be pointed out.

• Maintenance expense: Nowadays, the trend of living in flats has actually increased however the owner needs to pay regular monthly maintenance charges to keep the typical location of the flat. Maintenance expenses need to be paid for residing in a flat, so the tenancy agreement need to define who will pay the upkeep costs in between the owner and the tenant.

• Lock-in period: If there is a condition that the renter can not leave the house for a certain duration or the property manager does not ask the occupant to leave your home then this lock-in period need to be specified in the agreement.

• Duties and responsibilities: The responsibilities and obligations of both parties need to be plainly specified in a rental arrangement. Both parties will be bound to comply with the conditions mentioned in the agreement. The duty of the renter is to pay rent on time, take care of the residential or commercial property and maintain peace and order. On the other hand, the task of the proprietor is to keep your home in a rentable condition and preserve the water and electrical power supply on time.

• Renewal, termination, and notice period: A provision for an extension of the lease agreement need to be included in the contract. The arrangement needs to specify whether the tenant can renew the agreement at the end of the term.

The agreement needs to include a choice that the renter can end the rental arrangement before completion of the term and it can likewise state that the proprietor can ask the tenant to cancel the arrangement before the end of the term and leave the facilities if the property owner needs the residential or commercial property. In this case, the celebrations will alert each other with an optimum of two months' composed notification. Both celebrations may mutually choose an extension, renewal or notice duration before the arrangement is prepared.

• Dispute resolution: One of the most fundamental parts of the agreement is the method to resolve the issue. Disputes can develop in between proprietors and renters at any time, so it is essential to define in the arrangement how disagreements can be solved. The court, arbitration, and conciliation are the most typical ways to fix disputes between property owners and tenants.