Things to check in a rent agreement | Fusion - WeRIndia

Things to check in a rent agreement

Things to check in a rent agreement

Everyone cannot afford to own a home. Even if you have your own home, you cannot live in it if you get transferred to other places. Hence, living in a rented house is essential in such cases.

Most of the people live in rented houses in India. If you live in a rented house, a rent agreement or tenancy agreement can rescue you when a dispute arises. It benefits both the landlord and tenant.

Rent agreement contains rent amount, tenure, security deposit, rent payment date, facilities provided for a tenant, rent escalation clause, renewal terms after the expiry of the agreement, and any other mutually agreed terms.

The tenure of the rent agreement is 11 months unless otherwise specified. If the tenure is more than 11 months, it should be registered.

Notice period and termination clause are also mentioned in the agreement. A one-month notice period is fine in normal conditions. However, if the agreement says the notice period is two or three months, then both parties shall have to follow it.

The rent agreement should also mention the terms and conditions of the renewal after its expiry. The owner or landlord should renew the agreement after the expiry of a contract.

The tenant shall deposit the security amount with the landlord. It is also mentioned in the rent agreement. The deposit amount helps the landlord to protect against the damages of the property by the tenant.

If the landlord does not get the rent or the tenant fails to pay it by the due date, then the landlord may levy a penalty. It should also be mentioned in the agreement.

There are other fees like maintenance, gym fee etc., which shall be specified in the agreement. Besides, the tenant has to pay the electricity bill along with a regular maintenance charge.

So both the landlord and tenant should check all the terms properly before signing the document. They shall sign in the presence of two witnesses who also sign on the agreement.

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