In case you are giving your home on rent or taking a home on rent, the rent agreement plays a pivotal role in determining the rights of the owner and tenant. The rent agreement, entered into between the owner and the tenant, is the agreement that contains the terms and conditions subject to which the property has been leased by the owner to the tenant.
Before entering into a lease agreement, the tenant should ensure that the owner has proper title of the property. The owner should either be the owner of the property or an authorized power of attorney holder. The agreement should be signed by the owner himself or his duly authorized power of attorney.
Common clauses contained in a rent agreement are related to:
- Details of the owner and the tenant and their addresses
- Details of property leased - its location and identification details
- Declaration by the owner that he is either the owner of the property or is duly authorized by the owner to give the property on lease
- The effective date of commencement of the rent agreement and duration
- Term of the lease
- The lease rent and the mode of payment
- Security deposit amount paid, and whether it is interest-free or not and the circumstances when it is refundable
- Advance rent payable, if any, and the mode of its adjustment
- Rent increment clause
- When the rent can be increased and at what rates
- Facilities to be included in the rent
- Who has access to the common area, garden area etc
- Payment of municipal dues, property and house taxes
- Maintenance charges to be paid to the society
- Routine repair and maintenance expenses of the house
- Fixtures and fittings to be provided by the owner or not
- Grounds of termination of the agreement
- Notice period required for termination of the lease
- Registration expenses of lease deed
- Renewable clauses
- Details of parking space
- Details of terrace rights
- Details of society entry charges payable
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