Rental Agreement Precautions

A rental agreement guarantees you that you later have a reference in case of a problem between you and your landlord, which is why it is important to be careful with the clauses contained in the agreement. Here are some clauses to make for the lease. The rental contract could also include additional monthly fees, such as the association`s living expenses, the electricity bill, the water bill that must be paid by the tenant. The rental agreement may also include facilities such as parking in the accommodation. These additional fees should be clearly mentioned in the rental agreement with the person who must pay them. It is worth mentioning when and how the contract can be renewed, what the rent will be at the time of renewal, whether there are provisions for renegotiated rents and so on. Even in cities like Mumbai, in the initial agreement, real estate agents put in clauses regarding the payment of brokers at the time of renewal. Discuss this clause and find out in advance how much of the brokerage will be for the extension and who will pay for it. Also clarify the prohibition period during which neither the tenant nor the landlord can terminate the contract and make sure it is also mentioned in the contract.

„The agreement should clearly mention the consequences of the termination by one of the parties before the end of the lockout period,“ said Rajat Malhotra, a partner at Laware Associates, a Delhi-based law firm. As a general rule, if the tenant has to evacuate the house before the end of the prohibition period, the deposit is cancelled by the landlord. If the landlord wishes to evacuate the house before the expiration of the prohibition period, he must compensate the tenant in addition to the actual repayment of the deposit by paying an amount equal to the deposit. Therefore, the most prudent nature should be exercised in the development of the document. It should clearly state all the conditions in order to avoid any quarrel in the future. „Take the help of a legal expert to design the lease. Try to conduct a baseline check and make sure that a police check has been conducted. It`s in the best interest of all stakeholders,“ says Ashok Mohanani, CMD, EKTA World. The agreement must clearly state the amount of rent you must pay each month and the due date to which it must be paid. The arrangements for the length of your stay (rental duration), the frequency and date of rental payments, the date of renewal of your lease, and the repair and maintenance provisions must be clearly mentioned in the agreement. In addition, the roles and responsibilities of the tenant and the lessor should be defined.

„It is advisable to take the property on rent, after all repairs and maintenance.