A Contract That Outlines The Terms And Conditions Of A Tenancy Between A Tenant And A Landlord Is Called A Rental Agreement. Rent Agreement Format Contains The Rental Amount, Security Deposit, Duration Of Stay, And Other Necessary Details, Which Must Be Agreed Upon By Both, The Landlord And The Tenant. The Landlord Can Either Be The Owner Of The Property Or May Have A Power Of Attorney (POA) To Rent Out The Property From The Owner.
The Necessity For A Rent Agreement Emerges In The State Of Disagreement Between Both The Parties And Provides Protection, Structure, And Clarity To The Tenancy. A Well-Drafted Tenancy Agreement Lessens The Chances Of A Dispute To A Great Extent.
Key Elements of a Rent Agreement
- Rent Agreement Registration
- Competency To Contract
- Party Details
- Property Description
- Rent Agreement Terms And Conditions
- Security Deposit
- Lock-In Period
- Possession And Pet Details
- Conditions Leading To Eviction
- Rules And Regulations
- Right Of Entry
- Notice Period
- Renewal Of The Agreement
Rent Agreement Registration
A Duly Stamped And Registered Rental Agreement Shields The Rights Of Both Landlord And Tenant. The Rent Agreement Is Registered Under The Provisions Of The Registration Act, 1908. To Register A Rent Agreement, A Registration Fee And Stamp Duty Have To Be Paid. The Registration Fee Varies From State To State, Whereas, The Stamp Duty Is Levied Under The Provisions Of The Indian Stamp Act, 1899. If The Lock-In Period Of A Rent Agreement Is Not Exceeding 11 Months, It Is Not Compulsory To Register That Particular Rent Agreement As Per The Registration Act, 1908, But It Is Always Advisable To Register A Rent Agreement To Prevent Future Disputes.
Competency to Contract
The Agreement Must Contain A Statement From The Landlord Which Specifies That She/He Is The Undisputed Property Owner And Is Legally Allowed To Rent The Property To Another Individual.
The Names, Addresses, And ID Proofs Of The Parties Signing The Agreement Must Be Clearly Stated In The Rent Agreement To Eliminate Any Confusion In The Future.
The Rent Agreement Must Contain The Complete Address Of The Property That Is To Be Rented Out, Including The House Number, Locality Name, City, State, And Postal Code. It Should Also State The Description Of Entire Pertinent Information.
Rent Agreement Terms and Conditions
The Amount Of Rent To Be Paid And The Dates On Which It Is To Be Paid Every Month, By The Tenant Should Be Specified Clearly. The Agreement Should Also State Whether The Amount Of Rent Includes Bills Like Electricity, Water, Gas, And Other Miscellaneous Charges. The Mode Of Payment Of Rent Should Be Stated Whether It Will Be In Cash Or Will Be Paid Via Online Transfer Of Money.
This Amount Is Paid By The Tenant To The Landlord Before The Beginning Of Renting The Property As A Type Of Insurance. In Case Of Damage Caused By The Tenant, It Will Be Well Within The Rights Of The Landlord To Deduct An Amount Equivalent To The Damage From The Security Deposit Held. After Deducting Any Damage To The Property, The Security Deposit Amount Has To Be Returned To The Tenant At The Termination Of The Tenancy.
This Is The Period During Which The Tenant Is Not Allowed To Leave The Premises. If The Tenant Insists On Quitting The Premises Before The Term Or Is Required To Do So Due To A Breach Of The Agreement, Etc., He Is Obligated To Pay The Rent For The Lock-In Period As Specified In The Agreement.
Possession and Pet Details
If The Tenant Possesses Some Assets Or Movable Property Which The Landlord Does Not Wish To Reside Inside Her/His Property, Then Those Limitations Must Be Specified Beforehand To Prevent Any Dispute The Rent Agreement Should Also Specify Whether Or Not A Tenant Is Allowed To Have A Pet. The Limitations On Number, Size, And Species Should Be Listed As Well.
Conditions Leading to Eviction
The Conditions That Will Terminate The Rental Agreement With Immediate Effect Before Its Expiration Date Should Be Clearly Stated In The Agreement. These Conditions Include Committing Any Illegal Acts As Per The Indian Penal Code, 1860.
Rules and Regulations
The Landlord Should Specify The Rules And Restrictions On The Tenants As A Residuary Clause To Ensure Correct Conduct Throughout Their Stay At The Premises. The Clauses Are Required For The Protection Of The Premises. Such Activities May Include Any Immoral Acts Including Disturbing The Neighbors, Causing Damage To The Building, Etc.
Right of Entry
The Agreement Should Include A Clause That Allows The Landlord To Enter And Inspect The Property With Reasonable Notice. The Terms Should Also Define Reasonable Notice And Explain The Rights Of The Tenant.
In Case Of Termination Of The Rental Agreement, A Notice Period, Generally Of One Month, Has To Be Provided. A More Extended Notice Period Can Be Fixed By Mutual Agreement Of Both The Parties Which Must Be Stated In The Rental Agreement.
Renewal of the Agreement
Ideally, A New Agreement Is Signed Each Time The Tenant Renews. But Depending On The Willingness And Negotiations Of Both Parties To The Said Agreement, The Scope For Renewing The Agreement For The Duration Should Be Listed In The Rental Agreement.
Typical Rent Agreement Format
The Format Of The Rent Agreement Is Like Any Other Contract And Shall Be Strictly Adhered To. The Rent Agreement Starts With The Details Given Regarding The City, State, The Date Of The Agreement, Names And Full Addresses Of The Landlord And The Tenant. Then The Details Of The Property To Be Rented Along With The Details Regarding The Lawful Owner Of The Property Are Entered. Then After The Start And The End Date Of The Tenancy Agreement Is Specified. Once These Formalities Are Completed The Terms And Conditions Start, Which Should Include The Aspects Mentioned Above. After The Completion Of The Terms And Conditions, The Verification Is Done Wherein The Landlord And The Tenant Again Insert The Name And Addresses And Sign The Document Along With One Witness From Each Side. The Annexure Is Added At The Last If It Is Needed Which May Contain The List Of Items Of Fixtures And Fittings Provided.
How to make rent agreement online?
A Rent Agreement Is An Essential Document That Binds The Landlord And The Tenant In A Legally Enforceable Bond, Securing Their Rights And Preventing Misunderstandings That Could Potentially Lead To Litigation. While There Are Many Pre-Printed, Standardized Options Available Online, Those Terms May Not Fit Your Needs As A Property Owner Or Even As A Tenant. Therefore, It Is Always Better For Your Rental Agreement To Be Drafted As Per Your Requirements Leading To The Comfortable Association Of Both Parties.
WeVaad Is An Online Platform Providing Services Related To Alternative Dispute Resolutions Viz, Arbitration, Conciliation, And Mediation. Apart From This, WeVaad Also Delivers An Agreement Drafting Service That You Can Avail Of For Getting Your Agreements Drafted As Per Your Requirements And Reviewed By Experienced WeVaad Experts. The Whole Process Is Online, Which Makes It More Cost-Effective And Convenient.