How to create a smart rent agreement

Most working professionals,living away from their hometowns in a rental accommodation,would understand the situation. Had there been a proper rental agreement,Priya could have survived the problem. Having a well drafted rent agreement prepared with mutually established terms and conditions could have easily cut the chances of this misfortune event to zero.

What is a rent agreement?

A rent agreement is a notarised legal document which states both the parties,the tenant and the landlord,are to comply with the mutually established conditions. The relationship of a landlord and a tenant is a very complicated one. Sometimes,the connection is quite smooth,with the tenant paying the rent before or on time and landlord making the tenant feel at home.

However,there are situations when this relationship is fraught with complaints and counter-complaints. Therefore,to make matters smooth and convenient,it is wise to remember some vital aspects of the landlord-tenant relation.

Creating a rent agreement

Normally,it’s the duty of the broker hired by the tenant and the landlord to get the rent agreement prepared. However,the parties can also consult a lawyer for this purpose in case no broker is involved in the deal. To validate the agreement,both the parties ought to sign the dotted line in the presence of two non-beneficiaries of the rented property. The two witnesses also ought to sign the agreement to make it legal and binding. In order to give more power to the rental contract,rather than simply validating it,you should think of getting it registered by paying a certain amount of stamp duty.

What makes a smart rent agreement?

A smart rent agreement should include all the rights and obligations of both the parties towards the property. Here are some vital aspects that need to be chalked down in the rent agreement to avoid any unforeseen complications in the landlord-tenant relationship.

Names of all the people occupying the house: The contract should mention names of all the people living under the rented accommodation. This divides the responsibility of proper usage of the property between all the tenants. A legal procedure also states that each individual staying in the rented property is liable to pay the monthly rent if the responsible occupant fails to do so.

Tenancy duration: While drafting the rent contract,both the parties must include the mutually agreed duration of the lease in the agreement. The start and the end date should be clearly written to avoid any situations that may perhaps crop up later.

Rental amount and payment procedure: The amount of rent,fixed earlier by both the parties,should be included in the agreement. Any amount of security deposit to be made before renting out the property should also be mentioned along with clauses of its use,return and deductions. The agreement should also include the due date of payment,grace period,mode of payments and the procedure for rent escalation during the lease period.

Maintenance: The rent agreement should clearly mention the maintenance and repairing responsibilities. Typically,it is the duty of the tenant to keep the area clean and safe from any damage. All minor repairs are normally handled by the tenant. However,any major repair and regular maintenance activities are taken care of by the property owner.

Rules of decorum: The contract should clearly include the landlord’s restrictions that are to be followed by the occupants. It might include prohibited activities,parking rules,proper usage of property resources,society rules and the likes.

Renewal terms and notice period: Last but not the least,the contract should include proper clause for renewal after the conclusion of the lease period. If either party fails to abide by the rules of the contract,it would become void and the distressed party can claim the penalty. As a result,the contract should clearly mention the notice period for both the parties.

In a nutshell,hiring a professional to draft rent agreement and helping in plugging loopholes can surely make things legal and smooth for both the parties. So,consider all these points to make a smart rent agreement and enjoy a value for money stay at a rented property.