A Checklist before Creating the Rent Agreement
Jun 28, 2016 Legal Guidance
A rent agreement is an important document between landlord and tenant. It is a legal document that protects the interest of both the parties. The landlord and the tenant are both suppose to sign the document in the presence of two witnesses.
But before signing the agreement, keep in mind to check all below mentioned pointers:
Names of all the residents: the rent agreement should consist the name of all the residents. Usually, we don’t include the name but its beneficially, especially in case of bachelors. Due to the fact that if suddenly one of the occupants decides to leave and if his or her name is not mentioned in the list of residents, then the lead resident who had signed the document will be responsible for paying the entire rent. Mentioning the name of all the residents ensure that suddenly if such condition happens then the group of occupants will jointly hold the responsibility.
Tenancy duration: make sure that the duration of tenancy is clearly mentioned in the agreement. This will bring in the clarity between the tenant and the landlord about the duration of the stay, such that the tenant is clear on how long they can stay on the premises and the landlord can’t ask the tenants to leave under short notice.
Rent amount and mode of payment: to avoid confusion, it is necessary that the rent amount, the date for payment, procedure, security amount and similar other aspects are covered in the document. The agreement should also comprise of the clause related to the escalation within the tenancy period.
Maintenance of the property: the maintenance amount should be clearly mentioned in the rent agreement that the tenant has to pay to the society. The document should also mention about the minor repair that tenants need to be handled whereas the major repairs that include any construction-related matter are to be done by the owner of the property.
Renewal terms and condition: in addition to all, the document includes the renewal terms of the property and notice period to be given before vacating the premises.
Exit clause: it is one of the important aspects to be highlighted in the agreement. Some landlords have some clause before the exit such as fines or withholding deposit which needs to be clearly defined in the document.
Landlord’s address with phone number: the agreement should comprise of the permanent and full address of the landlord along with the phone number, so that if there is a problem the tenant can contact the landlord.
HRA exemption: do check whether landlord’s pan card details is mentioned or not. The pan card details are necessary if you are planning to include rent amount as HRA exemption.
List of fixtures and amenities: if the property is fully or partially furnished then the list of all the fixtures along with their condition should be mentioned in the agreement so that the tenant and the landlord both can keep a record of the condition of the amenities and the fixtures.
But before signing the agreement, keep in mind to check all below mentioned pointers:
Names of all the residents: the rent agreement should consist the name of all the residents. Usually, we don’t include the name but its beneficially, especially in case of bachelors. Due to the fact that if suddenly one of the occupants decides to leave and if his or her name is not mentioned in the list of residents, then the lead resident who had signed the document will be responsible for paying the entire rent. Mentioning the name of all the residents ensure that suddenly if such condition happens then the group of occupants will jointly hold the responsibility.
Tenancy duration: make sure that the duration of tenancy is clearly mentioned in the agreement. This will bring in the clarity between the tenant and the landlord about the duration of the stay, such that the tenant is clear on how long they can stay on the premises and the landlord can’t ask the tenants to leave under short notice.
Rent amount and mode of payment: to avoid confusion, it is necessary that the rent amount, the date for payment, procedure, security amount and similar other aspects are covered in the document. The agreement should also comprise of the clause related to the escalation within the tenancy period.
Maintenance of the property: the maintenance amount should be clearly mentioned in the rent agreement that the tenant has to pay to the society. The document should also mention about the minor repair that tenants need to be handled whereas the major repairs that include any construction-related matter are to be done by the owner of the property.
Renewal terms and condition: in addition to all, the document includes the renewal terms of the property and notice period to be given before vacating the premises.
Exit clause: it is one of the important aspects to be highlighted in the agreement. Some landlords have some clause before the exit such as fines or withholding deposit which needs to be clearly defined in the document.
Landlord’s address with phone number: the agreement should comprise of the permanent and full address of the landlord along with the phone number, so that if there is a problem the tenant can contact the landlord.
HRA exemption: do check whether landlord’s pan card details is mentioned or not. The pan card details are necessary if you are planning to include rent amount as HRA exemption.
List of fixtures and amenities: if the property is fully or partially furnished then the list of all the fixtures along with their condition should be mentioned in the agreement so that the tenant and the landlord both can keep a record of the condition of the amenities and the fixtures.
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