Study the deal,every clause

Ensure all terms and conditions are mentioned in the rental agreement.

Renting an apartment involves searching for one,and a little bit of luck too,for searches can be prolonged and it is very rarely that the ultimate combination of location,specification and price actually happens.

Even as one goes about finding that combination,here are some guidelines one needs to follow before entering into a rental agreement. Their significance is often overlooked,but following these guidelines can not only get you a roof over your head,but also peace of mind.

Let us begin with some of the house credentials that need to be verified:

Title documents: This is proof that the person renting or leasing out the premises is the actual owner of the place.

Share certificates: If the place rented out is part of a co-operative society or colony,the share certificates also need to checked.

Electricity bills: It is generally in the owners name.

Verification of built up area: This is done by a qualified architect.

No-objection certificate: This is a certificate that specifies conditions for rent/lease,some do not allow bachelors and may have other forms of bias that is defined in the document.

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After the preliminaries,now the turn of more substantive issues:

Rental Agreement

There are three significant aspects in the rental agreement that one needs to be on the lookout for: the licence period; consistency of the licence fee during this period and clarity on costs associated with the house such as municipal taxes,society charges etc.

The owner is expected to bear such costs. There should also be a definitive clause regarding any deposits given prior to renting the house. The legal agreement should clearly state the refund of such deposits when the lease is terminated. This also includes any deposits towards electricity bills,telephone bills etc. Clauses defining what happens,if this expectation is not met also needs to be in place. Usually security deposits that are not refunded within seven days of the expiry of the lease are liable to be refunded with interest for each days delay.

Care needs to be taken to ensure the landlord does not indiscriminately retain funds from the deposit for supposed damage to the premises etc.

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Signature on the lease agreement: Ensure either the owner or a person who is the authorised signatory for the owner signs the agreement for it to be valid. Accounting for furnishing: Make sure the lease agreement includes all fixtures and furnishings with an cost estimate of the same also specified.

Also,make sure there are other amenities like car parking,general maintenance etc.

Other matters

The usual term of the lease agreement is around 11 months with a notice of 2-3 months for either party to terminate the agreement. Notice clause is a must. The lease can be renewed every 11 months based on mutual consent.

Also,there should be a clause that allows you to retain possession of the house till the any dues that the landlord owes including deposit refunds are cleared.

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Be clear about any clauses that denote the breach of contract and see you are well protected. The tenant should also be covered under any circumstance where a sale,mortgage,transfer etc. of the apartment takes place. Here the notice period can be the saving factor,to help you make alternate arrangements.

Good due diligence and placing all terms and conditions clearly and in writing will ensure peace of mind for both tenant and landlord.

Author is CEO,Bankbazaar.com