Importance of Rent Agreement in India

A rent agreement is a contract between a tenant and owner in which the owner agrees to lease out his or her house to the tenant at an agreed monthly rent. This is a legal document that both parties have to abide by. Many properties in the country are available on rent. However, some owners or landlords make verbal commitments to their tenants and do not have a legal or written agreement. Such commitments or agreements may not ensure that your right as a tenant is not violated.

However, a written agreement is proof of all the terms and conditions that the two parties have agreed upon. Hence, when landlords or owners put their properties for rent in India, they ensure that a legal agreement is prepared. But the renewal of the written contract cannot be guaranteed. Here are the reasons why having a rent agreement is important.

It Protects the Rights of both Parties

A written agreement mentions all the terms and conditions that have been agreed upon by both the landlord and tenant. It protects the rights of both parties in case of any violation or issues related to the property. Any changes in the agreement need to have mutual consent of both the parties. This acts as a proof of ownership of the property.

You are Not Being Charged Anything Extra

When the terms and conditions are agreed upon between the tenant and landlord, it also mentions all the bills that the owner expects to be paid by the tenant. The written agreements include everything from the rent expected, the total tenure of the rental, deposit given by the tenant, etc. This ensures that nothing extra is being charged apart from what is mentioned in the agreement. This way the owners cannot take advantage of the tenant and tenants are not exploited.

It Mentions the Date of Increase in Rent

Most of the rental agreements are made for 11 months in India. After the first agreement ends, the rent is usually increased by the landlords. The percentage of increase in the rent and when it will increase is mentioned in the agreement. Hence, this will ensure that you are not giving an increased rent before the actual due date.

It Protects you from Unprepared Evacuation

There may a chance that the owner or the landlord may want to sell his or her property. The rent agreement has a clause that talks about the evacuation of the house in such a scenario. The tenant is given a few months’ notices before the owner can sell the house. He or she cannot ask the tenant to vacate the house without any prior notice. This will give you some time to hunt for another house for yourself.

A Penalty in Case of Delayed Rent

Some owners or landlords add a penalty in case the rent is delayed. However, some do not charge anything for delayed rent. The owner cannot charge anything beyond what is mentioned in the agreement. Hence, protecting you from any kind of exploitation.

So, if you are renting a property in India, make sure you get your written rent agreement from your landlord.