Searching for Rented House In India? Check Out To Know More
With increasing number of people shifting on different places for work purpose, the need of individual houses, apartments and flats is also on the rise. One of the important decision is whether you should buy a house or opt to live in a rented place. The decision is a very complex one, as it depends upon both the factors-finance and emotions. If you want to buy a house, then this is a smart choice but then you have to keep in mind the various factors and expenses involved in it like maintenance cost, annual repairs, insurance, property tax and a proper analysis of the area in which you want to stay.
On the other hand, if you opt to stay in a rented property, you will not have to care about the annual repairs and maintenance costs and you will be away from paying ]taxes as well.
Things To Consider While You Opt To Live In A Rented Property:
Though the main decision of whether to go for a rented house or buy a new one largely depends upon your annual income, sometimes it also depends on your choice. Listed below are the few things that you should take into account if you plan to live in a rented property:
• You have to pay the security deposit to the property owner before you start staying there.
- The monthly charges of the rent that you pay to the landowner on a monthly or quarterly basis
• Every time when you shift your house, you have to incur the shifting as well as the brokerage charges
• There will be an annual increment in the rent of the house
• You have to bear the hassle of shifting very frequently
In case, you are a salaried employee, when you will be paying rent under the Income Tax Act, you will be receiving a House rent allowance benefit. But you will not be able to reap the advantages of appreciation in prices. This is because of the fact that you don’t own any asset actually.
Know More About Residential Property And Its Agreement:
When you lease your own property or planning to take a property on rent, in both the cases, the property owner and the tenant discuss the terms of renting and its related aspects with each other. All the terms and conditions should be kept transparent before each other to avoid future discrepancies. Even it should be made legal, after being drafted by a legal professional. These legal documents which include all the terms and conditions are known as the Rent Agreement. This rental agreement becomes responsible for defining the rights and responsibilities possessed by both the parties.
As this rental agreement is mutually signed by both the tenant and the landlord, it also defines the relationship that exists between the landlord and the tenant. It also reduces the chance of an immoral clash between the property owner and the tenant. The clash might occur at any abrupt situation and also protects them from being exploited.
What Is Rent Agreement?
Rent or lease agreement is a legal document drafted by a legal professional. This document should be signed by both the parties, i.e. the property owner and the tenant. It is one of the most important considerations before they plan to take any individual house or any property on rent. It is also known as Tenancy agreement or Rental Contract or Lease form because it is actually a written contract which contains complete details about the terms on which the property is rented. Thus, by signing on it, the house owner as well as the tenant agree and show consent to its terms and conditions on which the property is rented.
Key Elements of Residential Lease Agreement and Its Related Legal Terms
Below mentioned are some of the basic elements of the Rent Agreement:
- Landlord- They are the actual owner of the property and called as “Lessor” in legal terms
• Premises- It is the property which is being rented
• Tenant- They are the ones who have agreed on terms and conditions to take the property on rent. In legal terms, they are known as “Lessee.”
• Term Duration- It is the time duration until which the tenant can use the property of the landlord
• Rent- It is the fixed amount of money which is to be paid by the Lessee to the Lessor.
Complete Description That The Residential Lease Agreement Must Include:
Let’s take a look at the details which one should not forget to include in the residential lease agreement:
- Type of the property
• Size of the property
• Address of the property, i.e., where it is located
• The purpose for which the property is rented, whether for commercial purpose or for residential purpose
• Monthly rent of the property
• Security Deposit that the tenant should pay to the landowner
• Duration of the lease agreement
Regardless of these descriptions, the Rent Agreement also includes the terms and conditions for termination of the agreement. As this agreement is signed when both the parties abide by its terms and conditions mentioned, it cannot be negotiated by either of them once the agreement is signed.
Why Most Of The Residential Rent Agreement Is Signed For Only 11 Months?
The main reason why most of the agreements are signed for 11 months is to avoid extra cost. These costs come in the form of stamp duty and other extra charges. According to the Post Registration Act, 1908, if the leasing period exceeds more than 12 months, then it becomes mandatory to register the lease agreement. In order to register an agreement, you have to pay the registration fee as well as the stamp duty. All this will increase the overall expenditure for both the property owner as well as for the tenant. As the financial aspect matters the most, both the parties mutually agree upon the 11-month contract. This lease agreement also avoids unnecessary cost and further complexities. Nevertheless, if they want to continue it for a long-term basis, they can repeat the process in a timely manner.
Thus, if you are looking for any individual rent house in India or houses for sale in Shimla, then you must ensure that your legal agreement is clear, to-the-point and includes all the descriptions discussed above. It must be sound to protect the rights and interests of both the property owner and the tenant legally.