Why Should You Always Ask For A Rental Agreement
Importance of Rental Agreement-
If you are getting a new place and plan to set it up for rental purposes, then there are many things you must keep in mind. Choosing the right location, getting the perfect place, and spending your hard-earned money on it is not an easy choice to make. Similarly, if you are up for renting a place for yourself or your business, there are certain dos and don’ts that you must know about.
If you are choosing an option similar to anyone above, then it will be prudent of you to get a rental contract signed after due deliberations and negotiations with the other party. A written rental contract goes along the way in helping you and the other party to decide upon the rights and the liabilities of each other, and it also gives you security for any contradictions in the future.
Here are a few reasons why you should have a rental agreement at all costs.
Deciding on the Payments-
The rental agreement which you sign in writing contains the amount of rent which is decided by both the parties, its due date, and all other technicalities. Landowners also ask for a security deposit during the agreement which is generally one or two months rent. This security amount is also mentioned in the rental contract. The date of its refund is also mention. Other payments such as electricity, water, maintenance, and repairs are decided upon between the parties and whose obligation it is. So in the future, your landowner cannot demand any payments unless otherwise agreed.
Duration and Renewal-
If you are planning to rent a place for the purpose of vacation holiday rentals, or residential purposes, the time period for which it is valid is written. Usually, a rent agreement is issued for 11 months. This is not a limit and a longer period can be specified as agreed by both the parties. You can also clarify the lock-in period during which the landlord or the tenant cannot terminate the agreement. This clause helps in assigning the liabilities and responsibilities of the party that terminates the agreement before the lock-in period gets over. After this lock-in period gets over, a tenant usually vacates the house, so if they don’t, the landowner has the right to demand payments and compensation also.
Other clauses that are mentioned in a rental agreement is the notice period clause, in which the tenant has to give a notice of two months before vacating the house. This clause is not valid during the locin period but after that. So, this helps the landowner in finding another tenant or making suitable amends according to this own preferences.
Furthermore, In a rental contract, the renewal clause mentions the provisions of renewal, the process of renegotiating the rent, and so on. So in terms of renewal, you can look into the agreement to know what procedure needs to be followed.
Description of the Property-
In the agreement, there are descriptions of the place you are renting. The number of rooms, fitting, fixtures, etc. If it is furnished then tables, chairs, sofas, electronics all are mentioned. This comes in handy for the landowner to get compensated in case there is any harm to the fittings or the property itself.
Registration of Agreement-
In most of the jurisdictions around the world, an unregistered rental agreement is not considered as evidence in the courts. Also, any of the party cants enforce it if it's not registered. For registration of rental agreements in case of residential or vacation holiday rentals, one should always opt for registration which includes a stamp fee and a minimal amount fo registration fee required. This cost is borne by both the parties on the terms agreed by them beforehand. Registration of your rental agreement will help you ascertain liabilities in the court of law impartially.
In terms of vacation holiday rentals or commercial rentals, there are certain restrictions put on by the landlord. If the tenant flouts those restrictions after agreeing to comply with them, legal action can be taken against them in the courts. Moreover, on the other hand, if the contract does not talk about a restriction but the landowner anyway puts it unofficially, the tenant can also seek action in this case. In this way, rental agreements go a long way in ascertaining your rights and duties as a tenant and a landlord.
No matter what type of rental agreement you are entering into, make sure you sign n rental contract which meticulously deals with all the rights and responsibilities. This will help you in the long term. When you are spending your hard-earned money as a landlord or a tenant, make sure you are spending it judiciously without any fraud play involved. This will help you live in peace and secure your surroundings in a legal manner.