Rent Agreement Clauses

A Rental agreement is a contract between an owner and a tenant, whereby the owner gives the tenant permission to occupy the residential property.
The following are some of the important clauses that need to be included in the Rent Agreement:

1. Details of owner and tenant
It is essential to be included in the agreement the details of the owner and tenant. These details ensure that, in the case of notice or other legal action, there is no problem identifying the parties.

2. Details of rental property
Including a complete property address (including the number of the building and unit, if applicable). Any specific storage areas or parking spaces that are included will also need to be noted.

3. Duration of Tenancy
The tenancy period must be specific, precise and pre - defined. This guarantees the owner 's rights over the return of ownership and enjoyment. It also guarantees the right of the occupant to look for a new place of residence or to request the extension of the rental agreement with respect to the time of eviction.

4. Rent and Premium
To protect the tenant's rights, the premium and rent amount must be predetermined.

5. Repair and Maintenance Charges
When used, any property needs maintenance and repairs. Since the property belongs to one person and is owned by another, the dispute as to who is to pay such additional fees leads to disputes. A pre-determination of the distribution of such costs is better.

6. Security Deposits and Fees
Nearly all landlords ask you to pay security deposits, usually equivalent to the rent for 2 or 3 months. In the event that you do any harm to the property or leave the house without paying the rent, this amount is obtained to ensure that there is some financial protection. It is very important to note in the rent agreement the security deposit and also whether it is refundable or non-refundable. The agreement should also include the timeframe during which the security deposit is to be repaid.

7. Payment of Bills and other Charges
Sometimes, owners rent their property without reporting the presence of unpaid utility bills or any of the property's due charges. This imposes an additional burden on the homeowner, and it becomes impossible to prove the landlord's responsibility in the absence of any arrangement in this regard. It should also be pre-determined as to who is responsible for paying those dues.

8. Notice period
While the law provides for a period of notice which should be served in various situations, it is advisable to specify the same in the agreement in order to protect the tenant's interests.

9. Conditions terminating tenancy
In compliance with the provisions of Section 111 of the Transfer of Property Act, a rental agreement between the tenant and the landlord can be terminated on different grounds. The landlord is entitled to include conditions of termination in the lease, the tenant may be evicted upon occurrence of these.

10. List of fixtures
Fixtures are attachments which, due to their mode of attachment, have attained the essence of immovable property. The landlord may also forbid the tenant from using such fixtures and it may have legal implications if the condition is broken. A dog house in the garden area may be an instance of a fixture.

11. Limits on occupancy/sub-letting
While the tenant in possession has a contractual right to sub-let the property under the Transfer of Property Act, it may be restricted or prohibited. The sub-letting of the property is the transfer from the lessee / tenant to another person of the rights of possession and enjoyment. Any express provision in the agreement can restrict or prohibit this inherent right.

12. Alteration of premises
Generally, a tenant has no right to change the leased property's premises or boundaries. At the will of the landlord, he may be granted some privileges in respect of the same.

13. Illegal Activities prohibited
The illegal activities prohibited from taking place in the leased property. It can include legal consequences if the requirement is violated.

14. Renewal of Rental Agreement
As this rental contract is only valid for a certain period of time, it is important to renew the rental agreement. At the moment of extension, the agreement should include when and how the agreement will be extended and how much the rent will rise.

15. Rent Agreement Registration
Registering the rent agreement is very necessary. In the case of conflicts, unregistered rental agreements may not serve as primary evidence. You will have to pay fees such as stamp duty and registration fees in order to record a rental agreement.