Clauses you must have in your rental agreement in India
Important Rental Agreement Clauses in India
Many people in India live in rented houses and availing a house on rent is very popular, if you have left your hometown and moved to another city for work or studies. But, a lot of people take a house on rent without even worrying to make a rental agreement. Doing so can lead to a lot of difficulties in the future. Thus, before taking a house on rent, it is vital to know the terms and conditions and prepare a rental agreement.
Rent agreement is a contract between a landlord and an occupant, whereby a landlord permits the occupant, to occupy the residential premises.
Must-have requirements in the rental agreement
- Security Deposit
Almost all landowners ask you to pay security deposits, regularly equal to 2- or 3-months’ rent. This amount is collected to ensure that there is some monetary security, in case you cause any damage to the property or leave the home without paying the rent. It is necessary to mention the security deposit in the rent agreement and also whether it is refundable or non-refundable. The contract should also contain the time frame, within which the security deposit must be refunded.
- Rent
The rent agreement between you and your landlord must list the amount of rent you have to pay each month, mode through which the payment is made and, the date by which money has to be paid, and the penalty for non-payment of the rent.
- Duration of agreement
Rental agreements are normally executed for a period of 11 months. If you wish, you can have a contract for a more extended period as well. The tenure should be explicitly specified in the agreement. Moreover, the agreement should contain the lock-in period. Lock-in period is the time through which neither you nor the landowner, can terminate the agreement.
- Repairs and Maintenance Charges
It should be written in the rental agreement, who should pay the charges for electricity, water, maintenance, and so on. It should also be mentioned, who is liable on repairs for damage not caused by the tenant.
- List of Fittings and Fixtures
Your rental agreement must contain a precise description of the house like the number of rooms, bathrooms, an area of the house and so on. It should also have a list of fittings and accessories which are already available on the rented property. This involves air conditioner, geyser, fans, lighting and so on.
- Renewal of Rental Agreement
As the rental agreement is valid only for a certain period of time, renewal of the rental Agreement is essential. The contract should contain when and how the agreement can be renewed and how much the rent will go up, at the time of renewal.
- Rent Agreement Registration
It is imperative to register the rent agreement. Unregistered rental agreements will not serve as prime evidence in case of disputes. In order to register a rent agreement, you will have to pay charges such as stamp duty and registration fees.
