A rent agreement
is a legal document which binds the landlord and the tenant to comply with the
mutually-agreed conditions. It is the most crucial document in case of a
dispute between the two.
Utmost care should
be taken in drafting the document. It should state all terms and conditions
clearly to avoid any dispute in future.
These are the points
one must consider while finalizing the agreement.
1) Name, address,
father's name of both the tenant and the landlord should be clearly mentioned.
2) It should be
verified that the lessor is the legal owner of the property or a person duly
authorised by him or a person authorised by a court to enter into such a
contract.
3) The rent should
be clearly mentioned (also whether it includes maintenance fee). The quantum of
increase in rent and from which date should also be made clear. The mode of
payment, whether in cheque or cash, plus the date of payment, is also
important. Any interest to be paid in case of delayed payment should also be
stated clearly.
4) The period of
tenancy should be clearly mentioned. The security amount and the lock-in period
are also important. How the amount will be refunded or whether it will be
adjusted in the advance rent should also be clearly mentioned.
5) Who will pay
water, electricity and maintenance charges is also important.
6) In case the
flat is furnished, a list of fittings and fixtures should be made and penalty
for damage decided in advance. The landlord should also check plumbing,
electrical, sanitary fittings, etc, and mention their condition in the
agreement. Details of the condition of walls, ceilings and rooftop should also
be mentioned so that there is no dispute over damage to the house, if there is
any.
7) The purpose of
tenancy should be clearly written- whether it will be used for commercial or
residential purpose.
8) The process for
premature termination of the lease.
9) The agreement
must specify the availability of facilities like common passage, roof, park,
swimming pool, car parking, library, club, gymnasium, etc, besides the
demarcated property, and charges payable, if any, for these.
This list is not
exhaustive. The landlord and the tenant can add as many conditions as they
want.
REGISTER THE LEASE
Section 17 of the
Registration Act 1908, makes it mandatory to get the rent agreement registered
if the lease period is more than 11 months.
Every lease
agreement should be registered because only then it can be used as evidence in
the court in case of any litigation. For registration, stamp duty and
registration fee have to be paid.
POLICE
VERIFICATION
This process helps
in background check of the tenant. Not doing this is a punishable offence under
Section 188 of the Indian Penal Code. This lowers the risk that the house is
not being rented out to a personal with criminal background. For this the
landlord simply has to fill the verification form and submit it to the local
police station along with identification proof of the tenant. The forms are
available online on websites of state police departments.
Apart from the
above, the landlord should periodically visit the premises to check whether the
tenant is violating any condition or if he has sublet the property. If yes, he
can demand that he vacate the house. If the tenant refuses to vacate, the
landlord can approach the authority which oversees disputes related to rent
with all the documents.