A rental agreement is a contract between a tenant and a landlord. Every landlord and tenant should agree to a rental agreement which outlines the terms of the agreement between them. A written rental agreement is good for both parties when there are complaints or situations that lead to misunderstandings because it lays out exactly what will be done and what will not. In this article, you’ll learn all about the rental agreement. You can also download the rent agreement format in word or pdf.
- Executing a Rental Agreement
- Terms of Rental Agreement
- Lease Agreement
- Rental Agreement or License Agreement: What is it?
- Download Rent Agreement Format in Word and PDF
- Common Terms to Include in a Rental Agreement
- Rental Agreement FAQS
Executing a Rental Agreement
The lease deed or rent agreement can be used by the lessor or lessee of a residential property.
Typically, the lessee and lessor sign a contract to indicate that they agree with the conditions set by the lessor. This contract is legally binding, and may be referenced by courts in case of a dispute. In order to complete the necessary forms, you can have a Non-Judicial Stamp Paper with a value of Rs. 100/- printed on it. You must execute two copies of this form with each party retaining one copy of the original document.
Terms of Rental Agreement
One of the most common features while entering into a property rental transaction in India is that of the 11 month agreement. This is currently preferred by landlords because there are two types of agreements that deal with property rentals in India, which are either a lease or leave and license agreement.
To be eligible for rental agreements that last over 12 months, you need to abide by the laws of rent control. These current laws mostly favor tenants and prevent landlords from charging tenants unfairly or prematurely evicting them. In addition, rules make it difficult for landlords to evict tenants without giving them ownership in the property. Laws such as these result in landlords avoiding long term rental agreements that last over a year.
Rental Agreement or License Agreement: What is it?
Most leases for a rental agreement allow for the landlord to be more precise about how and when the tenant is evicted from their property. A shorter lease agreement allows more error in the case of bad tenants where you are unable to take as drastic measures. An 11 month long lease, with an option to renew at the end of the license period prevents any other factors (namely rent control laws) that might impact your business negatively.
As these rent agreement are of a short time, they allow the landlord more measures to take in case of eviction of the tenant from the property. This is why, most landlords prefer to enter in to an 11 month agreement, providing a renewal option at the end of the tenure.
Download Rent Agreement Format in Word and PDF
Below, we have added the registered rental agreement format. You can download the rent agreement format in word and pdf by clicking on the button below the image.
Common Terms to Include in a Rental Agreement
Even if you will be moving into a new home, certain terms of the agreement with your landlord should still be taken care to maintain the legal status of your agreements. These important terms include any warranties, security deposit, restrictions on pets and amenities such as access to electricity and more.
Information of the Occupants
It is essential to have the names of all the occupants in the agreement.
It is important to have all the names of the occupants in the rental agreement so that there is no uncertainty about who lives in the property. If a person takes responsibility for the property, it’s easy to know whose responsibility it is.
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Duration of the stay
To protect the interests of both the property owner and tenant, a rental agreement can require that either side must be satisfied. For example, it is illegal for the owner to solely decide when the tenant vacates and not give any time frame in writing as it leaves them open legally to law enforcement. Moreover, in order to ensure a more equitable decision, the law needs to regulate how long a party can stay at their property based on representations given by that party.
The rent amount
Our rental amount or instalments can be found within the terms of our service. Your monthly rent needs to be paid on the following dates in order to avoid a penalty for late payments.
The cost of maintenance
Tenants are responsible for making sure that the property is in good condition and major or minor repairs. If a tenant needs to make changes, they should do so by contacting their landlord before or after the duration of their rental agreement has passed.
Important rules you should know
The rules provided in this paragraph deal with the safekeeping, such as subletting the space or causing alterations to the property.
Renewal of the Rental Agreement
If the tenant wants to extend their tenancy beyond the initial duration of the agreement, they’ll need to sign a new lease.
This here mentions the amenities that are provided to the tenant. Their condition and if they require any repairs, etc.
If a tenant leaves earlier than in the agreed upon time, then they must adhere to the terms of their contract.
Date and Signatures
Finally, both parties need to “sign” the agreement before starting the collaboration. If one party doesn’t sign, they might be facing troublesome legal action afterward.
One key component of the rental agreement that you may not be aware of is the Police Verification of the tenant. One key step in protecting your property is having the tenant go through a background check. Failure to do so, according to Section 188 of the Indian Penal Court, is an offense that is punishable by law.
Rental Agreement FAQS
Q1. What happens if you back out of your rental agreement?
If both parties agree and sign, the lease will end.
Q2. How to change the terms of your rental agreement
If you are the landlord of the property, you are allowed to change terms, conditions and clauses of the rental agreement, but only with 30 days’ notice. In case, you have mentioned changing of terms and conditions in the agreement, then you can also give a week’s notice.
Q3. How can I do the stamp duty online?
Ans. E-stamping is another option where you can go to the website and check for the availability in that state; however, sometimes it is not available. When using an e-stamping service, you do not need to buy stamp paper. Instead, choose a stamp on the website through tracking number given.
Q4. What If You Make Your Own Rental Agreement?
Each person should theoretically be able to create their own agreement for what terms they prefer. If you’re feeling unsteady about the legal aspects, consult a lawyer to get more advice about possible outcomes.
Q6. Who keeps the original rental agreement?
Ans. In all these cases, the landlord is legally allowed to keep the original document. However, you can ask for a copy if needed by contacting them or your lawyer. If a rental agreement is part of your case, including a copy of it would mean that your lawyer or the other party’s lawyer would be able to see it too rather than just one party.
We hope this article on rent agreement format was useful to you.