Points to ponder regarding Rental Agreements

Any agreement is a valuable document; it is more so in the case of a property executing rental agreements. This agreement specifies the broad terms and conditions and safeguards interests of the landlord as also the tenant. Thus, it is very necessary to go through the agreement threadbare and to be very clear about the points mentioned in the agreement.
Enumerated below are few important things which a tenant in particular should keep in mind before signing the document.
1. Types of agreement
Generally there are two types of agreement that can be considered (a) Rental Lease Agreement and (b) Leave and License Agreement. The former transfers ownership of the property – temporarily – to the tenant, while the latter does not. Before signing the agreement, find out which type of agreement the landlord has drawn up, as both agreements differ in the rights they give to the tenant and the landlord.
2. Verification of ownership
This is a very crucial aspect and must be probe into for satisfaction before moving into the house. It may so happen that the person who is not the real owner of the property manage to rent it out. Upon discovery by the original owner that somebody is staying in his property without his knowledge, he may seek legal remedy of trespassing against the tenant. Therefore as a tenant it is imperative before entering into the flat that you have actually executed the agreement with real owner. As a documentary evidence of this fact the tenant should peruse the self deed, share certificate, property tax , receipts, electricity , water bills, etc. which should bear the name of the owner. Also make sure the same name appears on the rental agreement.
3. Rent value
This must also be clearly mentioned in the rental agreement. The agreement should also contain a clause indicating precise time period before which the rent cannot be increased. This will provide safeguards to the tenants from arbitrary increase in rent from landlord side. However there is no harm if a separate rent escalation clause figures in the agreement mentioned in the time frame for increasing the rent.
4. Tenure
Generally by mutual understanding of the parties , the tenure for lease agreements are kept minimum of 12 months whereas in the case of lease and license agreement the time limit is only upto 11 months only which can be renewed thereafter.
In case of lease agreements, the tenure has to be a minimum of 12 months, whereas lease and license agreements can be drawn for a period of up to 11 months only. The lease and license agreements are usually renewed at the end of the tenure.
5. Eviction Notice
As a measure of safeguard against sudden eviction by the landlord the agreement should clearly state that such eviction notice is for a reasonable period of time say 2-3 month so that the tenant is not inconvenienced and is able to find an alternative accommodation.
6. Security deposit
The tenant may be asked to deposit a certain sum of money with the landlord before signing the rental agreement. This amount must be mentioned in the agreement and the tenant should obtain a receipt from the landlord.

A good rental agreement drafted keeping in mind the above points would take care of the interests of the tenant and would give him trouble free occupancy. For more visit irxlive.com


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