Category Archives: Rental Agreement

What are the important clauses in residential rental agreement?

Thinking of getting a place to live in a new city or simply a place to stay in when you don’t own a property? You must make sure that you have applied for residential rental agreement. In order to, simply avoid any possibility of disputes and secure your expected interests, it’s recommended to include clause in your rental agreement.

Have a look on them that are discussed as below:-

  • The security deposit

The landlord is likely to take a security deposit from the tenant. This is a type of monetary security just in case, the tenants cause any damages in the property. This amount taken is to be mentioned in the residential rental agreement document. If there comes a situation where the tenant doesn’t pay the monthly rent and isn’t traceable too then it’s wise to mention in the Clause of your rental agreement whether the security deposit is refundable or not. It’s also rather advisable to include the time frame in which such a security deposit is to be refunded.

  • The rent

The residential rental agreement includes the detail of how much amount is to be charged each month for the rent from the tenant. It should also include in which manner the payment is to be received or made. You can also mention in your rental agreement about the penalty levied on not paying the rent on time.

  • The tenancy term

The landlord or the property owners likely to consider a lock-in period of at least 6 months. This is for ensuring at least the 6 months of stay of the tenant of which he shall also give rent of. Also the rental agreement Registration depends on the term of tenancy.

  • The maintenance charges in case of repairs.

It should be made very clear in the residential rental agreement that what maintenance the tenant has to pay apart from the rent. It could be for maintenance of water supply, electricity and society charges. Another thing to include in your rental agreement is whether the tenant or the landlord will pay for the minor repairs or damages caused during the stay of the tenant on the rented property.

  • The list of the amenities and fixtures.

It is to be mentioned in the rental agreement, about the fixtures, fittings and amenities are in working condition and already are available on the rented property. This will include the furniture, air conditioner, geyser, RO, fans, lights etc already fitted in the rented property.

  • The grounds on which the tenant could get evicted.

The property owner making the rental agreement must put a clause that includes on what grounds the tenant could be liable for eviction. This could include certain bad behaviour or illegal activities. In addition to this, the tenant must ensure this in the rental agreement. This is in compliance with all of the laws that are relevant to government regulations.

It’s often made quite clear in the rental agreement about the fact what sort of people can possess the property on rent. This clause is negotiable with the landlord in exceptional cases of necessary circumstances.

  • The renewal of the rental agreement.

Because the rental agreement gives a specific duration for which the residential rental agreement is valid. Once that time period is over, the rental agreement is to be renewed and this is an essential factor. While renewing the rental agreement, it must be mentioned by how much percentage of the hike there has been in the rent, if any.

Are you willing to apply for residential rental agreement? If yes then you are at an absolutely right platform where our highly skilled professionals are dedicated to help you in every online legal process at Enterslice. You can leave us an email we will shortly revert you and will provide reliable solutions to your issues immediately under the expert consultation.

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What is a Residential Rental Agreement?

The residential rental agreement is usually defined as a written document that exists between the owner of a property and a renter who desires to own temporary possession of the property of the landlord.

It sets out the foundations between landlords and tenants who conform to follow in their rental relationship. It’s a legal contract that is choked with crucial business details, like how long the tenant will reside within the property and also the amount of rent due every month.

Types of Rental Agreement

The agreement entered between landlord and tenant is of 2 types depending on the laws to abide by:

  1. 11 months Rental agreement

One of the foremost common options which deal with getting into a property rental deal is that the prevalence of the eleven-month rental agreements. This kind of agreement is most preferable by landlord because of the laws which more in his favour. It is a comprehensive agreement, protecting the rights of each landlord. 11 months agreement is just like a license for the tenant to occupy the premises for a short duration.  It provides the flexibility to landlord to take more measures to take in case of eviction of tenant from the property

  1. Over 11 months Rental Agreement

Rental Agreement that is over twelve months has to be compelled to abide by strict rent management laws that are largely favorable to the tenants, which is the reason due to which this type of agreement is not much preferable by landlord. Also, the right to ownership of the property gets transferred from the landlords to the tenants for an indefinite period which is why most of the tenants refuses to vacate and it becomes difficult for landlord to evict the tenant.

However, at the expiration of the above agreement there is an option for both landlord and tenant to renew the agreement.

What are the documents required for Residential Rental Agreement?

Mainly Aadhar card and PAN card being valid proof shall be required of all parties (Landlord, Tenant and a pair of witnesses) for cross verification.

What should a Rental Agreement contain?

A rental agreement shall include the terms and conditions on which the property is rented.

  1. TENURE OF PROPERTY: The tenure of the property for which it is made between landlord and tenant should be clearly specified
  2. RENT VALUE AND DATE OF DEPOSIT: The amount which a tenant has agreed to pay to landlord every month should be clearly specified. Also the date upto which rent value should be deposited should be mentioned along with the penal charges, if not paid within term defined
  3. SECURITY AMOUNT: Upon execution of the agreement, Tenant deposits with Landlord a security deposit which is refundable at the expiration of term.
  4. REFRESHMENTS: The rent agreement could also mention the facilities, such as parking space or the usage of society’s gym, or other refreshments included in the rent.
  5. MAINTENANCE CHARGE: There are additional monthly charges paid for the maintenance. A tenant should be well aware of the same.
  6. NOTICE PERIOD: The agreement should also specify the notice period and penalty for cancelling the agreement without completing the specified period.
  7. RENT ESCLATION CLAUSE: This clause should be checked by the tenant that landlord might increase the rent because of the increase in the rentals and at what certain percentage it would be increased.
  8. SALE OF HOUSE: The agreement should also specify the clause for sale If the owner decides to sell the house during the term of the rent agreement.
  9. ACCESS TO PROPERTY TAX: Tenant has a right to access the documents which state the property tax has been paid by the landlord.
  10. NUMBER OF OCCUPANTS: This clause should specify in order to avoid the Tenant agrees that the House shall be occupied by no more than
  11. UTILITIES: Tenant shall be responsible for paying for all minor repair work for installed electrical appliances required on the premises.
  12. GOVERNING LAW: It is to be agreed by both the party that this agreement shall be governed by, construed, and enforced in accordance with the laws of the [State of Governing Law].

The above list is not exhaustive. The terms of Rental Agreement varies.

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