Important Points To Remember:

Why we must do rent agreement?

A rental agreement covers all the terms and conditions on which a property is rented out. The descriptions of the parties involved in the transaction are included. It is extremely necessary and helpful for any tenant to carefully read and analyse the rent agreement. Most tenants do not pay much attention to it, however, since they are not aware of the legal points to be included in a rental agreement. This absence of scrutiny causes legal problems for tenants and landlords.

Owner's background check:

Before signing the agreement, ensure that the real owner of the house is the one who is projecting himself as the landlord. There have been cases of caretakers or relatives showing themselves to be the owner of a house and extracting the rent without the real owner's knowledge. To verify the credibility of the owner, you can request a look at the official documents such as the NOC and the business complex's utility bills, etc.

Terms of payment:

Cross check the payment information before signing the dotted line. The agreement should include the value of the rent, the timeframe during which the rent is supposed to be paid on a monthly basis, the overhead charges payable by the tenants, the payment form, i.e. cash, cheque or bank transfer, and, if applicable, the penalty charges. Make sure the contract also specifies the amount of the security deposit.

Tenure:

Usually, a rental agreement is signed for 11 months. In your rent agreement, check if the same is the case. Often, if the arrangement is cancelled prior to completion, search the notice period that is there.

The tenant has no way of demanding the right to stay in leased accommodation without a well drafted agreement. Therefore, if you obey all the rules, make sure that you sign the contract.

What is Lock in Period?

The lock-in clause says that before the specified time, the tenant can not leave the rented house. If the tenant wishes to leave the rented property before the lock in time, he / she must pay the rented amount as stated in the rental agreement for the lock-in period.

Maintainance Charges Clause

In the rental contract, it should be clear who will bear the maintenance costs and whether they are included in the rent or not. It is helpful for owners to keep maintenance fees apart from rent as it will help with the purpose of taxation. This arrangement would decrease their household income.
For example, if rent is Rs 20k and maintenance is Rs 3k. In case owner charge Rs 23k as a rent then this amount will be income from house property. Suppose maintenance is charged separately then income from house property is Rs 20k.

Security Deposit

It was not clear in the some rent agreement whether the security deposit was refundable or non-refundable. "Security Deposit is Refundable," you should always mention. You can request separate security deposit payment receipt with cheque no, date, and owner's signature information.

What should the landlord provide for the tenants?

• Accurate details of the licensed premises, such as the size of the premises, availability of car parking area, etc.
• Willingness and cooperation to get the leave and license agreement duly stamped and registered, at the sub-registrar’s office.
• Uninterrupted use and occupation of the licensed premises.
• Safety and privacy to the licensee, to use and enjoy the licensed premises.
• Clear right, title and interest, to provide the licensee with the license to use and enjoy the licensed premises.

When can a landlord ask the tenant to vacate the property?

Landlords can allow the tenant the pre-decided notice period, to look for alternate accommodation, in case of eviction without cause. In most situations, the following causes can be a reason for eviction:
• Consistent delay in the payments received from the tenant.
• Violation of a term or a condition specified in the agreement.
• Illegal activities on the leased property.
• Serious damage to the rental property.

Important Documents For Owner, Tenant and Witness

• The original proof/evidence of ownership or title of the property.
• Property documents such as Index II or tax receipt or Electricity Bill of the property to be lease.
• Owner must have Adhar Card and Pancard,Tenent and witnesses must have Adhar Card.

Limits on occupancy/subleasing

This important clause means that only those who have signed the lease can live on the rental property, along with their minor children. Without your permission, tenants will also not be allowed to sub-lease the premises to another party.

Property’s Conditions at time of renting

As a procedure, before renting, always check the condition of the property. It is great to have a clause at the time of renting that specifies the condition of the property in detail. It should provide a description of room by room.

Renewal of Agreement

A rental contract provides for a short period of tenancy, which is later renewed after the end of the period. Generally, for a term of 11 months, a landlord and a tenant make a lease arrangement, with an option for a periodic renewal. Since the current Rent Control Act is largely in favour of tenants, but only applies to lease agreements of at least 12 months, it helps landlords to take pre-emptive measures for eviction by establishing an 11-month agreement. Extending the rental agreement is very simple. We just need to make few amendments to the existing terms & conditions.

Can Owner Visits Premises without Tenant Permissions during term?

No, not without the tenant's permission. During the term of the rental agreement, the landlord and/or his associates have all the rights to visit and inspect his property. This clause should be reported in detail and the landlord should provide the occupant with ample notice before visiting.

In case if Fraud occurs then what to do

In recent years, rental scams have increased in different ways. People searching for leased property are often fooled by prevalent rental scams. One of the most popular rental scams is paying in cash prior to signing any rental contract.
When the rental agreement is signed, it is important that both the tenant and the landlord check all the details. Any violation by the tenant or landlord can withdraw the contract. It is important to explicitly state in the agreement how the property will be used. Property harm, misuse of the property, movement of visitors, friends or relatives is often a point of contention between a landlord and a tenant.
If you find any violation, you may demand eviction by providing your tenant with a notice. It is really necessary not to ignore some form of violation and give your tenant a warning at the right time. If you receive a complaint from your property about the actions of your tenant or any illegal activity, then you will be responsible for it. That's why you ought to be mindful of your rights and responsibilities as an owner.

What Do You Do If You're a Fraud Victim?

1. Share information with local authorities. They will prosecute if they find the person successfully, and will be able to refund any money you may have lost.
2. Contact the listing website where the listing was found so that they can take it down.
3. Report it to the Federal Commission on Trade. The FTC is responsible for protecting customers, especially when it comes to how your personal information is treated by a company, or whether an entity falsely claims to operate a business.
4. File with the IC3 a complaint. The Internet Crime Complaint Center, a government agency that makes it easy for people to report online crime, is the IC3. In order to better monitor and address internet scams, such as rental listing scams, they collaborate with the FBI and local authorities.

About Police Verification

Police tenant verification includes a background check that identifies any tenants with past convictions, rapsheet, which sounds off to you.
Police verification for tenants is a mandatory step to ensure safety issues that you might have because you will not have eyes and ears on the ground if you live out of state or abroad.
They know that law enforcement has their data and will be at their doorstep at the slightest suspicion of any alleged misconduct if the tenants have undergone police verification. It discourages them from carrying out misdemeanours, destroying properties or participating in criminal activities.
With police verification, any extremist and anti-national elements who lease residential property under a false identity and forged documents can be captured.
The general procedure is as follows:
1. Procure the police verification form at the police station or download it online.
2. Fill in the tenant and (landlord) details as prescribed in the form. Reference numbers may also be asked for.
3. Attach a passport size photo
4. Provide voter ID/Aadhar Card/ Ration Card/Passport/Driver’s Licence details
5. Sign the form duly
6. Save the acknowledgment receipt after submitting the form.
Here is List of Police Stations for Police Verification Click Here