Important Things About Renting You Must Consider

As you all know, a rental agreement is a legal document signed between a property owner and the tenant desiring to have temporary ownership of the property. They are used for various rental purposes such as for real estate, parking space, full of some portion of the property for agriculture, institutional and other reasons. Generally, these types of rental agreements include names of parties, details of the property, amount of rent and the term of rental.

A lot of people have no idea about what should be covered or looked before getting into an agreement. So, following are answers to some of the most frequently asked questions so that you get aware of essential things involved in a rental agreement:

What are the Types of Agreements Used?

11-month Rental

The typical duration of renting a property is 11 months which can be renewed at the end of the 11th month.

Long Term Lease

In this, renting is done for a particular number of years.

Commercial Rental Lease

Here, a property is rented for some commercial purpose.

What are the Documents Required for Registration?

• Original identity proof of owner and tenant.
• Passport size photograph of both parties.
• If the tenant is a company, then a board’s authorization letter from the company is required. In this letter, the person’s right to register the lease should be mentioned.
• Rental agreement printed on a stamp paper.

What are the Steps Involved?

The steps involved are as follows:

Drafting

Owner and tenant together decide the terms and conditions related to renting, security deposit, etc. Discuss and draft accordingly.

Purchase the e-stamp paper

Purchase an e-stamp paper of the directed value and then print the drafted document on the stamp paper.

Signing

The next step involves both parties to sign the contract which will declare that they accept all the terms and conditions.

Registration

When both parties signed the agreement, it needs to get registered at a sub-registrar office.

What are the Important Terms to be Included while Drafting?

Following are some important terms to be included mutually while drafting the contract:

Lock-in Period

This is the time period within which neither the owner nor the tenant can terminate the legal document. If a tenant tries to do so, then he/she will have to pay for the rest of the lock-in period.

Pets

A clause will mention whether the pets are allowed in the rented property or not.

Duration

The duration of the tenancy should be clearly mentioned.

Maintenance and Repairs

The role of tenant and landlords for repairs and maintenance should be stated.

Water and Electricity Bill

A contract should clearly declare that water and electricity bills have to be paid by the renter.

Rent and Security Deposits

Amount of rent to be paid each month, the date of payment should be stated. Penalty for the late payment and mode of payment should also be included.

Food Habits

If the owner has an issue with cooking non-veg in the property, it needs to be clearly mentioned.

Is it Important to Include All the Details of the Tenant?

Yes, including all the details of the tenant is mandatory. If you don’t then the terms and conditions mentioned in the agreement won’t apply on the tenant and this can further cause a problem.

Why is the Contract Made for 11 Months?

The contract for rent is made for 11 months to avoid the strict rental law that is applied on lease up to 12 months. This is the reason why 1 month in this whole 12 months is counted as the notice period served by the owner.

Is Notarisation of Rental Agreement Required?

Notarisation of a rental document can never be compared to a registered contract. Notarisation is no registration. If any dispute arises in the future, courts will not accept notarized contracts as evidence in India. Even if you have got your document notarised, you will need to register it. If the agreement is for 11 months then notarising is sufficient and valid.

What are the Consequences of Not Registering the Contract?

An unregistered rental document cannot serve as evidence in court. It cannot be used as proof of any terms and conditions provided in the agreement. Hence, it is advisable to make your rent agreement registered to be on the safe side.

These are some common queries of people they ask before renting a property. Hopefully, you have got answers to all your questions. Keep these things in mind before drafting and signing a rental legal document. Do mention these points so that you are safe from any kind of trouble in the future. Whether you are a landlord or a renter, opt for drafting a digital rental contract in order to save your time and money. You can get all the benefits from drafting to signing a legal document for renting at an e-contract platform like Feelium E-Contracts.