Why a rental agreement is very important | Fusion - WeRIndia

Why a rental agreement is very important

Why a rental agreement is very important

When renting a place to stay, many people can be confused by the terms of the relationship between the landlord and the owner. However, a formal rental lease agreement can solve most problems.

It significantly lessens any conflicts from unpredictable occurrences and expenses. Of course, it is possible to rent a home without a formal tenancy agreement, but an official agreement is the best way to go.

It makes clear the relationship terms between landlord and owner and can be used for any legal purposes regarding the tenancy. Here are some of the specific reasons as to why it is necessary to sign a rental lease agreement when renting a home:

Security is one of the most crucial reasons to sign a rental lease agreement. It protects both the owner and the landlord from unpredictable expenses, and secures the owner from paying costly home repairs. However, any intentional damage done by the owner is of course paid for by the owner.

A formal rental agreement can also help the owner with any disputes over the tenancy. It can be used to file a complaint against the landlord, and can even be used to sue the owner if necessary. Tenancy lawsuits cannot be done with a verbal agreement.

Rental agreements can also be used for the House Rent Allowance options, or HRA, if it comes as a part of the salary of the owner. One must submit the rental lease agreement and a stamped rent receipt in order to acquire a HRA.

A rental lease agreement also allows the owner to have a purchase option, which can be used if the landlord wants to sell the home, or in rent-to-own situations. The rent pay is higher, but the additional pay is stored in an account that can help the owner save for a down payment. This option is not usually offered under a verbal rental agreement.

Perhaps the most important reasons to sign a rental agreement is because of the money it saves.

The monthly rent payment charged by the landlord is stated in the agreement, so there will be no confusion over how much the rent costs.

Image Credit: Nick Youngson CC BY-SA 3.0 Alpha Stock Images

Image Reference: https://thebluediamondgallery.com/legal/rental-agreement.html

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