Why is rent agreement important for you?

Why is rent agreement important for you?

Why is rent agreement important for you?

A rent agreement entails all the terms and conditions under which a property is given out on rent. It includes the details of the parties involved in the transaction. Carefully reading and scrutinizing the rent agreement is highly essential and beneficial for any tenant. However, most tenants do not pay much attention to it as they are not aware of the legal points that should be incorporated in a rent agreement. It is this lack of scrutiny that creates legal issues between tenants and landlords.

Background check of the owner: Prior to signing the agreement make sure that the person who is projecting himself as the landlord is the actual owner of the house. There have been instances when caretakers or relatives show themselves as the owner of a house and extract the rent without the knowledge of the actual owner. To check the integrity of the owner, you can ask for a look in the official documents like the NOC and utility bills of the society complex etc.

Terms of payment: Prior to signing the dotted line, cross check the payment details. The agreement should mention the rent amount, the period within which the rent is expected every month, the overhead charges that are to be paid by the tenants, the mode of payment i.e. cash, cheque or bank transfer and the penalty charges, if any. Make sure that the agreement also mentions the amount of the security deposit. The rent escalation clause is another factor that should be paid attention to; it includes the terms of increasing the rent amount by the landlord.

Tenure: A rent agreement is usually signed for 11 months. Check whether the same is the case in your rent agreement. Also, check the notice period that is there if the agreement is cancelled prior to completion.

Without a properly crafted agreement, the tenant has no means to claim the right of staying in a rented accommodation. Therefore, if you are following all the rules, then make sure that you are signing the agreement. For similar articles and information on house for rent, please visit www.makaan.com .

Last Updated: Thu Jun 27 2013

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@@Wed May 13 2020 19:59:51