Many people are in the business of renting houses. Some take a house on rent or lease. In both cases you need a document as a proof of agreement. House Rent Agreement is linked with a residential property. This document is more important for the people running the business of renting homes. Creating a rent agreement also protects you legally against illegal possessions. It is a contract for taking a house on rent. The contract is generally between two or more persons. One owns the house and the other pays a certain amount to use this property. Both parties getting into a contract follow terms and conditions mentioned in the document. Above all, both parties (person) must read the terms of the rent agreement before closing the deal to avoid future conflict.
Parts of House Rent Agreement
Every house rent agreement has these important sections.
House Rent Agreement Start and End Dates
Start and End dates reflect duration of agreement. Standard duration of the rent agreement is normally 11 months. After that either they (tenant & owner) renew the agreement or tenant moves to another location.
The person who lives in the house during the time mentioned in the house rent contract is a Tenant. He is the one who pays rent or lease amount.
The person who owns the house is the owner or landlord. This is the person who collects the rent or lease amount.
Rent Amount per Month
Rent amount is the money a tenant pays during his / hers stay in the house. Generally tenants pay a monthly rent.
Terms of Rent Agreement
Every house rent agreement is different. Starting from monthly rental to advance payment terms, it depends on the real time situation. Therefore, terms of rent agreement are the most important part of this document. You should discuss everything in detail before creating a rent agreement. The tenant and owner must read the terms before signing the rent agreement document. Most terms are linked with usage of property and paying rent on time. This also includes applicable rules if the tenant or owner does not adhere to the terms.
Notice period is the buffer time (in days or months) before vacating the house. For example the tenant has to inform one month in advance before vacating the house.
Frequently asked Questions
Here is a list of questions people ask about making a rent agreement. These are some most common issues people face while drafting a rent agreement document.
Why the rent agreement is for 11 months?
11 months of rent agreements are limited to India. In India agreements more than 11 months should be registered. There is a registration fee linked to this agreement. Therefore, many people avoid making a house rent agreement for more than 11 months. This helps them save the cost of registration and government fee.