Why Rent Agreement Is Necessary

The first thing that comes to mind when looking for a house to rent is the rent agreement! But is it that necessary though? Can we be without it? Is it costly? And will it be worth the effort? These are some of the few questions that we’re going to answer and help you out! So let us begin!

What is the purpose of a rent agreement?

So, a rent agreement is a document that lists down clearly the terms and conditions put forward by both the parties and their other personal details. This document requires both the parties to agree to each other’s terms and conditions of which this document remains as a standing proof.

Is it better to get a lease or not?

The short and simple answer to that is absolute! Renting out your property without putting the rules and regulations at check is just like putting a signboard of danger and inviting trouble at your property.

Like a lot of other relationships, the relationship between a tenant and a landlord can be complicated, and not putting each other’s wants and needs at a check, in writing is just like giving a guarantee that this relationship is just about to get more and more complicated. More than the landlord, not having some kind of proper written paperwork can put the tenant into tremendous pressure and vulnerability. To put things into writing means to have a kind of security as it will include a lot of other actors on the national and regional level to protect you from any fraudulent or exploitation. Hence, putting things into writing as a rent agreement or lease is highly recommended and important.

Why do I need a lease or a rent agreement?

Maybe you know the landlord personally, or maybe they are a relative and hence you trust them. You will also find some landlords who will just ask you for your voter’s ID or some kind of ID and just after a conversation and a word of mouth they might let the tenant move in. While oral promises can be binding, sadly, they cannot be proven to a third person who was not present during the time it happened for example a judge. Hence, accepting oral deals might be a good idea only if you know the house owner or are going to rent the property for a very short period. Otherwise, you are just at the mercy of a person who does not know you and that might not a good idea.

1. Avoid Unnecessary Disputes: When you do not take little wants and need in writing and put each other’s terms and conditions in place, you can end up in real trouble. The little things like having pets, or a little repair or even a leaking pipe can end up in big nasty judicial trials. Neither is that pleasant nor do we have time for that, so better have it writing and hold each other responsible for abiding by your vows.
2. Resolve Issues Easily: Having a lease agreement also ensures a better way of getting all those little issues and problems addressed and resolved that otherwise would have been overlooked and neglected.
3. The Law: The laws of the state and nation usually takes care of the tenant and ensures a smooth functioning with minimum disputes and friction and hence has some rules and regulation to keep in consideration while renting or looking to rent and can come in handy.
4. Security Deposit: The security deposit is the deposition that the property owner would usually ask you to put to work as a compensation for the unpaid rent or other property damages. This money is demanded upfront. Not having a lease can solidify the chances of you not being able to collect this big chunk of money of yours even if you have been a good tenant. If things are not in writing then most matters become a “he-said, she-said” dispute which is just going to give you an extra headache as if you did not have it already.

How do I get a rental agreement?

Lease agreements or rental agreements usually require some degree of involvement and supervision of legal personnel. Don’t worry! It’s usually a pretty easy process and will not require you to sweat! Brokers or www.onlyproperty.in  usually help you out in such processes and if you are dealing with the property owner himself and don’t want to ask help from them then ask someone who has gone through this process or anything similar.

What is the difference between a lease agreement and a rent agreement?

A rental agreement establishes tenancy for a short period, usually a month and the agreement is renewed every month on a month to month basis until one of the involved parties ( you or your tenant) gives you a proper notice with a finite time before the agreement terminates (typically 30 days). This kind of agreement usually gives both parties the chance or opportunity to change the terms and conditions of the tenancy, change the price of the rent, or even terminate the agreement within a short period, unless local rental control ordinances specify otherwise.

However, a lease agreement usually obliges both you and your tenant to stick to your vows and promises that are mentioned and clearly stated in the document and give you no flexibility to change the terms and conditions of the tenancy or change the monthly rent price etcetera.

What is the cost of a registered rent agreement?

Usually, a rent agreement lets you take the property out on rent for 11 (eleven) months. The cost of the rent agreement usually is calculated based on the monthly rent that the landowner is asking for. For example, if the monthly rent for the property is 5000 (five thousand) rupees a month then, the yearly income from the property would be 5000×12 (five thousand into twelve) that is 60,000 (sixty thousand) rupees and the rent agreement would be 2% (two percentage) of the entire income that is; 60,000x 2/100= 1200 (one thousand two hundred) rupees.

This agreement is usually the responsibility of the property owner to get done and give it to the tenant and the tenant may also have some terms that should also be included into the document and signed by both the parties involved along with a feasible number of witnesses, usually 2 is good enough.

So these were some common questions that people usually have while leasing out a property or looking to rent one but no matter what you are looking for it is always clever to put it in writing!