There could be many things that can trouble your daily life, such as car repair, job search, or renting your property. Now, you might be thinking how renting a property would cause problems for you. It goes without saying that while renting your property, there should be a mutual and cordial relationship between you and the tenant to avoid any unnecessary disputes.
To avoid any misunderstandings, a probable solution could be a ‘rent agreement.’ Yes, that one single agreement can get you rid of any problematic situations. Did you take a sigh of relief now? Don’t forget to add those clauses in the rent agreement that are the most critical for you. If you’re having any trouble thinking of such clauses, this blog is here to help you.
You’ll find all the essential information related to a rental agreement here. Let us begin.
The Must-Haves to Have in Your Rental Agreement
You never know what could be the attitude of the tenants you will be renting your property to. A rental agreement can put you on a safer side from such people. However, you can miss out on some of the much-required prospects. These are:
Monthly rental, security deposit, and other payments
This is the most important clause a rent agreement must-have. A rental agreement must include the amount of rent that the tenant needs to pay and the date on which he/she should pay at any cost. Nowadays, a rent agreement does incorporate a mention of the security-deposit. It could be the rent of one or two months.
Apart from this, the agreement should also include things like electricity, water, PNG, maintenance, and so on. It should also be mentioned if there is a separate meter for utility connections based on which bills should be payable by the tenant or if there’s a fixed amount every month.
Registration of agreement
You have to understand that when an agreement is verified and signed by both parties, it should go under the registration phase as quickly as possible. In a scenario of any dispute between the parties, unregistered rent agreements are not considered primary evidence by the court.
You’ll have to put up some other valid proofs to justify your stand.
As per many “property management companies” one must bear charges such as stamp duty and registration fee to register an agreement. The tenants and the landlords typically share the charges, but to mention that in the rental agreement is mandatory.
Duration of agreement and renewal criteria
Legally, the tenure of a rent agreement is 11 months. However, you can make it for a longer period as well. Lock-in periods also need to be mentioned clearly, during which neither the tenant nor the landlord can dispense-off the agreement.
Typically, when the tenant leaves the property before the lock-in period, the security deposit is forfeited by the landlord. Similarly, when a landlord makes the tenant vacate the house before the lock-in period, they’ve to pay them all the security deposit.
It’s important to state that the lock-in period is not the same as the notice period, typically one or two months.
Restrictions can put a brake on a person’s liberty, isn’t it? So, it is better to clarify some critical things like keeping a pet or parking vehicles inside the property premises. Some landlords also include other restrictions, such as using the terrace, parking space, garden, or any other amenities in the society. So, make sure to review all such prerequisites very carefully.
Being a landlord, it is extremely crucial to state that any damages made to the property will be the tenants’ responsibility. Or, you can mention that the tenant will have to keep the premises in a broom-clean condition.
It will be better to alert the tenant beforehand about the legal formalities. Otherwise, things might end up messy when not cleared first.
Rules of tenancy
Not every landlord gives tenants’ the liberty to follow their own rules. They can ask the tenant to limit things like smoking, no illegal activities, or loud music after the specified time. State that you’ll have the authority to terminate the agreement and even take him/ her to court if the tenant fails to abide by the tenancy rules.
The last word
Renting your property may sound easy but is difficult in reality. You never know what kind of a tenant you’ll have to serve. Some might be very friendly and nice to you whereas, some might leave you in distress. It is better to have a rental agreement to avoid any future misunderstandings.