Residential Rental Agreement

A rental agreement is an official written contract between the owners of the property and tenant for a specific period that contain particular terms and conditions. The rental agreement drafted on a stamp paper includes the minor details of the residential rent agreement are terms & conditions, content, a specific duration of temporary possession, and security deposit. 

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In India, there are two types of rent agreement one is a lease agreement that is maximum for twelve months that is governed by the state government, the other one is of the lease and license agreement up to eleven months not under the rent control act.

Content of a Rental Agreement

  1. Name of the landlord, agent, and tenant 
  2. Description About the property 
  3. Amount of rent and late charges 
  4. Mode of payment
  5. Amount of security deposit 
  6. Any furnished furniture by the landlord imposed for any such utilities if applicable then the invoice should specifically mention
  7. Facilities having basic necessity services should be available on the premises like water, electricity, gas, and washroom.
  8. If there is parking space accessible any society charges must be informed and included 
  9. Must mention all the rules and regulations of the premises for the tenant to avoid trouble.

Terms that must be mention in the Rent Agreement 

  1. Rent amount- the amount decided prior by the landlord and tenant for the temporary possession of the property, and the mode of payment also must be discussed prior.
  2. For how long(duration)- period must discuss for the rented property until the time rent agreement will be in effect.
  3. The purpose of the Rented property- the purpose of renting the property and the conditions regarding the same disclosed prior
  4. Deposits- the Security deposit is the amount for adjustment of any repair or maintenance and return after the agreement expires.
  5. Insurance- whether the tenant requires to get the property insured, in case of commercial use of a property.
  6. Repairs and maintenance-who will be responsible for repairs and maintenance of the tenant or landlord.
  7. Essential utilities-must include in a rental agreement or must clarify before.

Security Deposit

Security deposit to be paid by the tenants to the owner at the time of finalizing the deal. The same should return after the tenant vacates the premises. Security deposit is used for the damages if done by the tenant to anything like electrical appliances, furniture, etc. after deducting the due damage cost from the security deposit and remaining return back to the tenant. As per the draft, contract laws say that the ministry of housing and urban affairs that to charge a security deposit over three times the monthly rent is unlawful to charge.

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