A Rent Agreement is a legal file signed between a property owner and a renter to lease a residential or commercial property. The person who owns the residential or commercial property is referred to as the property owner and the individual who takes the residential or commercial property on lease is known as the renter. A rental arrangement is extremely essential as it contains all the terms and conditions related to renting a particular residential or commercial property in written kind. Renting a residential or commercial property without a composed agreement is extremely harmful as it can cause legal issues in the future. An oral rent contract is not legally acceptable so if there is an oral agreement in between landlord and renter either celebration can repudiate the arrangement in such case the other party needs to show the material of the agreement which is rather difficult.

A lease agreement is generally prepared by the lawyer with the shared permission of the occupant and landlord, however it must be drawn up with the shared consent of both parties and signed by both celebrations in the presence of two witnesses. A written rental contract works as proof of a mutual arrangement in between the celebrations and is permissible as proof in court and the regards to this contract can not be altered without the permission of both parties.

KINDS OF RENT AGREEMENT

A rent arrangement is generally of three types namely lease arrangement, lease agreement, leave and license agreement. Among the three types of a rental agreement, whichever kind of agreement is gotten in into, both parties are bound to abide by its conditions. If the terms of the rental arrangement are breached, the other celebration can litigate to recover its due rights. However, the three types of rental agreements are talked about listed below;

• Rent arrangement: A lease agreement is a conditional legal agreement in between the landlord and the occupant. It is a shared agreement between the proprietor and renter that permits a hassle-free settlement in between the parties in the future.

• Lease arrangement: A lease deed is a type of legal document that moves ownership of a residential or commercial property for a specific amount of time in consideration of an assured rate. A lease arrangement is usually made for the long-term leasing of a residential or commercial property.

• Leave and license arrangement: A leave and license arrangement is a legal document in which a residential or commercial property owner allows a person to use his residential or commercial property for a specific amount of time in exchange for a specified license charge, it does not move the ownership of the residential or commercial property. A leave and license contract in between landlord and occupant is typically used to rent a domestic home.

BENEFITS OF RENT AGREEMENT

The advantages of a written lease agreement are as follows:

• A written lease arrangement is made with the consent of the tenant and the property owner.

• The conditions of a rent agreement are set upon the permission of both parties.

• It secures the rights of both celebrations and also protects them from future disagreements.

• It offers security to the property manager's residential or commercial property and safeguards occupants from illegal claims by proprietors.

• It is admissible as evidence in court.

IMPORTANT CLAUSES OF THE RENT AGREEMENT

A lease arrangement is prepared with the permission of both parties. However, the stipulations that need to be included in a rental contract are mentioned below.

• Details of celebrations: This is the first provision of a rental agreement. This stipulation identifies the parties to the agreement. In order to determine the celebrations to the lease agreement it is vital to mention their name, age, religious beliefs, occupation, address, etc in the agreement. If among the celebrations to a rental contract is a company, the name and address of that company should be consisted of in the arrangement and likewise the name, age, daddy's name, occupation, address, and classification of the person representing the organization ought to be mentioned.

• Description of rented residential or commercial property: An extensive description of the residential or commercial property in regard of which a rental agreement is being prepared need to be pointed out. It is likewise very essential to point out that this residential or commercial property is supplied or unfurnished, if furnished then what furniture is in the residential or commercial property should be discussed. If a rent contract does not supply a thorough description of the residential or commercial property, there remains a high possibility of future disputes.

• Tenure of agreement: The tenure of a rental agreement depends upon both parties. The tenure of the occupancy agreement is not fixed, it can never be said that the occupancy of a house does not exceed 11 months. However, when preparing a rental contract, it is very crucial to define its period and also the start and end dates of the arrangement.

• Purpose of rent: It is essential to discuss the function for which a tenant is leasing the residential or commercial property and likewise it is extremely essential to discuss that no anti-social activities can be done on the residential or commercial property. If the function of the rent is not specified, the renter will do as he pleases in the residential or commercial property and the landlord may deal with problems in the future.

• Rent and down payment: The monthly rent of the residential or commercial property and the down payment are a part of the rental contract which should be clearly discussed and it is likewise essential to mention the particular date on which the lease will be paid each month. If there is any condition of boost in rent after a specific period then it should be mentioned.

• Maintenance expense: Nowadays, the trend of living in flats has increased however the owner needs to pay regular monthly maintenance charges to preserve the common location of the flat. Maintenance expenses should be paid for living in a flat, so the occupancy arrangement need to specify who will pay the maintenance costs between the owner and the renter.

• Lock-in period: If there is a condition that the tenant can not leave the house for a specific duration or the property owner does not ask the renter to abandon your house then this lock-in period must be specified in the arrangement.

• Duties and commitments: The tasks and commitments of both celebrations need to be plainly mentioned in a rental arrangement. Both celebrations will be bound to abide by the terms discussed in the arrangement. The task of the renter is to pay lease on time, take care of the residential or commercial property and maintain peace and order. On the other hand, the duty of the landlord is to keep the house in a rentable condition and preserve the water and electricity supply on time.

• Renewal, termination, and notice period: An arrangement for an extension of the rent agreement should be consisted of in the agreement. The agreement needs to define whether the renter can restore the arrangement at the end of the term.

The arrangement ought to consist of an alternative that the tenant can terminate the rental agreement before completion of the term and it can likewise state that the proprietor can ask the tenant to cancel the contract before completion of the term and abandon the facilities if the landlord requires the residential or commercial property. In this case, the celebrations shall inform each other with a maximum of 2 months' composed notice. Both celebrations might mutually choose on an extension, renewal or notification period before the agreement is prepared.

• Dispute resolution: One of the most important parts of the contract is the way to solve the issue. Disputes can occur between landlords and tenants at any time, so it is very important to specify in the agreement how conflicts can be resolved. The court, arbitration, and conciliation are the most typical ways to resolve conflicts in between property managers and occupants.