Rental agreement formats mostly have some common tenets about them that you should know more about. Possessing knowledge of the format and contents is vital if you are considering renting a home soon.
What do we essentially mean by a rental agreement ? This is nothing but a vital legal document which is called the contract made between the owner of the property or the landlord and also his/her tenant for a fixed duration. This agreement has the pre-fixed conditions and regulations under which temporary possession of the landlord’s property is provided to the tenant. Both parties are bound to adhere to the regulations mentioned in this contract/agreement. The duration/period of the agreement is always renewable as per the desires of the property owner.
The terms and conditions as mentioned in the particular rent agreement format, are also changeable upon the understanding between landlords and tenants. The notarized rent agreement is not held as legally binding until it gets registered. Hence, for registration purposes, tenants have to pay requisite charges along with stamp duty.
Rent agreement format basics- What it essentially looks like
Talking about rental agreements, there is a simple format that usually exists and one that is not too complicated. Here is what it basically looks like-
This rent agreement is made on this______________________________ (date of agreement) by _________________ (landlord name) S/o ____________________ (father’s name of landlord), Address: _______________________ (residential address of landlord). Hereinafter called the Lessor/Owner, Party of the first part AND ______________________________________ (name of proposed company) through its proposed director _________________ (director’s name) called tenant/lessee, party of the second part. That the expression of the term, Lessor/Owner and the Lessee/Tenant shall mean and include their legal heirs, successors, assigns, representatives etc. Whereas the Lessor/Owner is the owner and in possession of the property No: ______________________________________(registered company address) and has agreed to let out the one office room, one toilet & bathroom set on said property, to the Lessee/Tenant and the Lessee/Tenant has agreed to take the same on rent of Rs. ______________ (in words) per month.
This is what standard rental agreement format look like and will equally apply for those looking to rent residential units as well.
Rental agreement format and terms and conditions- What they look like
The terms of the agreement usually comprise of the following:
- The amount in words as monthly rent which will not include water and electricity charges.
- The clause that the property will not be leased by the tenant to any sub-tenant without consent from the landlord.
- The tenant will be following all local regulations, laws and other guidelines and will not carry out illegal activities in the property.
- The agreement will remain valid for 11 months starting from the date mentioned and the contract can be renewed with mutual consent.
- The tenant will be paying electricity and water charges based on consumption to the landlord.
- No construction will be allowed in the premises by the tenant.
- Installation of temporary décor items, appliances may be allowed without taking permission from the landlord.
- The tenant cannot make any alterations in the property minus the landlord’s consent.
- The tenant will allow landlords/authorized agents for entering the premises for general checking/inspection/repair work.
- Tenants will be keeping the unit tidy and will not cause problems to neighbors with any activity.
- Tenants will be bearing costs of minor repairs periodically.
- There is also a clause that the agreement may be revoked before it expires with a month’s notice.
- No dangerous/explosive items will be kept in the premises by the tenant or any other offensive articles.
- One month’s rent is payable by the tenant to the landlord in advance and will be adjusted likewise for the monthly rental amount.
The last part of the rental agreement will have the signatures of witnesses and both parties and also the part where they state that they have clearly read and understood all terms and conditions of the agreement while signing without being pressurized.
Other vital aspects of rental agreements
Apart from the rent agreement format, you should know about a few other vital aspects as well. The agreement is required to be printed on stamp paper with minimum Rs. 100/200 as the value. Stamp duty will be 1% of the total rent amount along with the deposit that is paid annually. This can also be Rs. 500 if it is lower. The tenancy agreement should have all basic information as enumerated above.
For 11 month agreements, registration is not compulsory for rental contracts. Witnesses can be just about anyone you know since there are no stringent regulations pertaining to the same. The rental and lease agreements are not the same thing. The rent agreement will not be legally binding upon both parties until it gets registered. The notarized agreement is not the indicator of registration. Registry charges and stamp duty are payable by the tenant for the rent agreement.