Things you should know before signing a rent agreement

What is a rent agreement?

A rent agreement is an authoritative agreement that expresses the consent owner and inhabitant/tenant to pursue rental principles. Mostly, the real estate agent, who hired by proprietor and the occupant prepares the rent agreement. To approve the agreement, both owner and tenant should give their consent by signing the agreement in the within the sight of two witnesses.

What should be included in the rental agreement?

  • A rent agreement incorporates the terms and conditions under which the property is provided on rent. The agreement incorporates the name of both tenant and owner and the address of the property which is provided on rent.
  • Ensure the individual you are transacting with is the genuine proprietor/landowner of the property. You likewise reserve the right to see the records that demonstrate every single past bill identified with the house have been paid, particularly the power, water and gas bills.
  • A rent agreement incorporates the amount of rent paid and the time period for which the agreement is made. The time period of an agreement is normally 11 months. Additionally, terms and conditions should be mention under which the agreement can be reestablished after it ends. If the agreement is for over a year, it is mandatory for the proprietor to enlist the agreement by paying the essential stamp duty.
  • The agreement additionally makes reference to the security add up to be kept with the landowner by the tenant. The amount is generally held for the term of the tenure. The amount is an assurance for the proprietor to make preparations for the expense of fixing property is harmed by the tenant.
  • Additionally, it should specify the date before which the rent is relied upon to be paid. For example, it could be the 5th or 7th of every month. If the tenant neglects to pay the rent before the above-mentioned date, the charges that he would be required to pay should be mention in the agreement.

Other things that you should be taken care of –

  • Tenant ought to check whether the proprietor has incorporated a “rent escalation clause” in the agreement, which could be utilized to expand the lease after a specific period like after 12 months. Confirm whether the agreement includes the date after which lease charges would increment and the level of increment.
  • Check if the proprietor has included a “clause on the sale of the house”. If in case, the proprietor chooses to sell the property during the term of the agreement, you have to know how much time you will get to locate another property for yourself.
  • A provision which expresses who will pay the charge of the normal repair of the property should be included in the agreement. Commonly, minor fixes of the property are dealt with by the tenant.

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