A Rent Agreement is a legal file signed between a property owner and a renter to rent a residential or commercial property. The person who owns the residential or commercial property is called the property owner and the individual who takes the residential or commercial property on lease is understood as the occupant. A rental contract is really essential as it includes all the terms and conditions connected to leasing a particular residential or commercial property in written form. Renting a residential or commercial property without a written contract is really harmful as it can cause legal problems in the future. An oral rent contract is not legally acceptable so if there is an oral arrangement in between property owner and tenant either celebration can repudiate the contract in such case the other party needs to show the material of the arrangement which is quite difficult.

A rent contract is typically drafted by the attorney with the mutual permission of the occupant and property manager, but it must be prepared with the shared approval of both parties and signed by both parties in the existence of two witnesses. A composed rental agreement serves as evidence of a shared arrangement in between the parties and is permissible as evidence in court and the terms of this agreement can not be altered without the consent of both celebrations.

TYPES OF RENT AGREEMENT

A rent arrangement is generally of 3 types namely lease agreement, lease arrangement, leave and license arrangement. Among the three kinds of a rental arrangement, whichever kind of contract is participated in, both parties are bound to comply with its terms and conditions. If the regards to the rental contract are violated, the other celebration can go to court to recover its due rights. However, the 3 types of rental arrangements are gone over below;

• Rent arrangement: A rent arrangement is a conditional legal contract between the property owner and the tenant. It is a mutual agreement between the proprietor and renter that enables a problem-free settlement between the celebrations in the future.

• Lease agreement: A lease deed is a kind of legal file that transfers ownership of a residential or commercial property for a given amount of time in factor to consider of a promised price. A lease agreement is usually made for the long-lasting leasing of a residential or commercial property.

• Leave and license contract: A leave and license agreement is a legal document in which a residential or commercial property owner enables a person to utilize his residential or commercial property for a particular time period in exchange for a defined license fee, it does not transfer the ownership of the residential or commercial property. A leave and license contract between property manager and renter is commonly utilized to rent a house.

BENEFITS OF RENT AGREEMENT

The benefits of a composed rent contract are as follows:

• A written lease arrangement is made with the consent of the occupant and the proprietor.

• The terms of a rent contract are set upon the approval of both parties.

• It safeguards the rights of both parties and likewise protects them from future disagreements.

• It provides security to the property manager's residential or commercial property and safeguards tenants from prohibited claims by landlords.

• It is permissible as evidence in court.

IMPORTANT CLAUSES OF THE RENT AGREEMENT

A lease agreement is prepared with the approval of both celebrations. However, the clauses that need to be included in a rental agreement are pointed out below.

• Details of celebrations: This is the first provision of a rental agreement. This provision determines the celebrations to the contract. In order to recognize the parties to the lease arrangement it is vital to discuss their name, age, religious beliefs, occupation, address, and so on in the arrangement. If among the celebrations to a rental contract is a company, the name and address of that company must be consisted of in the contract and also the name, age, dad's name, profession, address, and classification of the person representing the company should be discussed.

• Description of rented residential or commercial property: An extensive description of the residential or commercial property in respect of which a rental contract is being prepared need to be mentioned. It is likewise extremely essential to point out that this residential or commercial property is provided or unfurnished, if furnished then what furnishings remains in the residential or commercial property needs to be pointed out. If a lease contract does not provide a thorough description of the residential or commercial property, there stays a high possibility of future disputes.

• Tenure of contract: The tenure of a rental arrangement depends upon both parties. The tenure of the tenancy agreement is not fixed, it can never be stated that the occupancy of a home does not go beyond 11 months. However, when preparing a rental contract, it is really important to specify its duration and likewise the start and end dates of the contract.

• Purpose of lease: It is very important to discuss the function for which a tenant is leasing the residential or commercial property and also it is extremely important to point out that no anti-social activities can be done on the residential or commercial property. If the purpose of the rent is not specified, the renter will do as he pleases in the residential or commercial property and the property manager might deal with issues in the future.

• Rent and down payment: The month-to-month lease of the residential or commercial property and the down payment belong of the rental contract which need to be clearly pointed out and it is also crucial to discuss the specific date on which the rent will be paid on a monthly basis. If there is any condition of boost in lease after a specified duration then it must be mentioned.

• Maintenance expense: Nowadays, the pattern of living in flats has increased however the owner has to pay month-to-month maintenance charges to maintain the common area of the flat. Maintenance expenses need to be paid for residing in a flat, so the tenancy agreement must define who will pay the upkeep expenses between the owner and the renter.

• Lock-in period: If there is a condition that the tenant can not leave the home for a specific duration or the landlord does not ask the occupant to abandon your house then this lock-in period need to be defined in the contract.

• Duties and obligations: The responsibilities and commitments of both parties should be plainly specified in a rental agreement. Both parties will be bound to follow the terms and conditions discussed in the contract. The task of the occupant is to pay rent on time, look after the residential or commercial property and keep peace and order. On the other hand, the responsibility of the property owner is to keep your home in a rentable condition and maintain the water and electricity supply on time.

• Renewal, termination, and notice period: An arrangement for an extension of the rent agreement must be included in the contract. The agreement needs to specify whether the occupant can renew the arrangement at the end of the term.

The arrangement ought to consist of an alternative that the occupant can end the rental agreement before completion of the term and it can also specify that the property owner can ask the renter to cancel the arrangement before completion of the term and vacate the premises if the property manager needs the residential or commercial property. In this case, the celebrations will alert each other with a maximum of 2 months' written notice. Both celebrations may mutually pick an extension, renewal or notification duration before the agreement is prepared.

• Dispute resolution: One of the most vital parts of the agreement is the way to resolve the problem. Disputes can occur between property owners and renters at any time, so it is essential to specify in the agreement how disagreements can be dealt with. The court, arbitration, and conciliation are the most common ways to fix disputes in between property managers and occupants.