Here is a brief description on the major rent agreement clauses to help you when dealing with any property for rent. A rent agreement is a written agreement between two parties, lessor and lessee. Rent agreement contains the terms and conditions upon the property leased by lessor to the lessee.
Common nature of an agreement should be signed by either parties in the presense of minimum two witness. Witness also required to sign to come the rent agreement valid. A lease agreement should be drafeted carefully and both parities should read and understand the terms and conditions mentioned in the agreement.
Here are the common major clauses required your attention when dealing with a rent agreement.
1. Term of lease 2. Personal details of both Lesseor and lessee with full address of each. 3. Full address of the property as well as nearby location information and identification. 4. Lessor should be declared that he is the owner of the property. 5. Date effective to the commencement of lease 6. Duration of the rent 7. Rent information and the mode of payment 8. All the details of security deposits, that paid by the lessee. There should be clause stating the security deposit is interest free or not. 9. Information on the circumstance when the security deposit refunded to the lessee. 10. Standard deduction, if any, from the deposit at the time of paying back the same to lessee. 11. In case of advance payment of rent, it should be included. 12. Information on the termination of agreement 13. In case of rent increase after certain period of time, it should be mentioned 14. Information on the fittings and facilities inside the propery. 15. Information on the access to the common areas and who all are able to have access to it. 16. Information on the utility related payments e.g. water, electricity etc… and who will pay the same, lessee or lessor. 17. In case the property in a housing society, who pays the applicable charges to the society. 18. In case of major or minor repairs as well as routine repairs, it should be mentioned on the agreement to understand the severity of such repairs. 19. In case of agreement termination, the notice period information should be included in the agreement. 20. Information on who will bear the cost of registration of deeds if required. 21. Information of the parking space, terrace rights, society entry charges. 22. In case of renewal, those clauses should be there in the agreement. 23. Incase of any alternation required by the lessee, information on the required approval from the lessor should be mentioned. It is the duty of a lessee to check what all are the clause included in the agreement on rent. He should be well aware on by identifying each of the above clauses and should rectify all the doubts prior to sign up the agreement. Incase of any major changes, it is required to recreate the agreement as new. There are possible verbal agreements between lessor and lessee. For example, if there is any alternation or addition required to the existing structure of the property, lessee should contact the lessor to get necessary approval to get the work done as per his interest. It is always a best practice to have a check and submit the required alternations prior entering to the agreement. It is the duty of a lessee to identify all the facilities available and the availability of the same after office hours or holidays. There will be possibility to have common area and the maintenance of the same should be fixed before entering to the agreement.