The rental agreement is the most important document in the renting process. It is that crucial deed that lays the foundation for the rental transaction, its duration and renewal. As a legal document, it also provides both the landlord and the tenant protection against any unfair practices by either party.
ApnaComplex Rentals is a one-stop rental management service that can help landlords and tenants with formulating and registering a rental agreement. In addition, they can also benefit from move-in / move-out services, home insurance coverage, and getting the property ready for occupation.
What is a rental agreement?
A rental agreement is a contract between the landlord and the tenant that governs a tenancy that lays down related terms and clauses. As a legal document, these terms and conditions are enforceable, thus making it critical in protecting the rights of both parties.
A rental agreement typically contains the following:
- Name and contact details of tenant(s) and landlord
- Description of the unit, including address and inventory (e.g. equipments and furniture)
- Proportion or area of the property
- Duration of the tenancy
- Rent details including security deposit and rent due date
- Terms, responsibilities, and rights of both parties
- Clauses for extending or terminating the agreement
Since these clauses will be binding during the term of the tenancy, it is highly recommended to read the agreement carefully before signing. Make sure that all the terms are as per your negotiations.
Importance of Rental Agreement
Even today, the rental landscape is rife with unregulated transactions that have plagued this segment. People may choose to forgo a rental agreement to avoid paying a registration fee or to hide their income or spending. Instead, they rely on verbal or written agreements that have no legal standing. This can have disastrous consequences.
We have landlords who raise rents or evict tenants without proper notice. On the other hand, we have tenants who refuse to pay rent or evict on time. A rental agreement is meant to protect both parties. Its benefits include:
- Protecting the rights of the tenant(s) and landlord
- Defining the tenancy duration and its renewal or termination
- Proof of residency for the tenant
- Reducing the chances of disputes between the tenant and landlord
In terms of paperwork, the necessity of getting a rental agreement can differ from one state to another. However, as both central and different state governments push towards promoting ethical transactions and transparency in the segment, rental agreements will become legally mandatory.
Model Tenancy Act & Rental Agreements
The Union Government had proposed the Model Tenancy Act with the view of regularising the rental landscape. Under the act, states have to set up a ‘rent authority’ under which landlords and tenants have to register their agreement. The act will replace existing regulations in states that already have such a system.
However, it is important to understand that even when it comes into effect, it may not apply to all rental agreements. First, it is only applicable to tenancy periods exceeding 11 months. As a prospective law, only agreements registered after the act comes into force will come under its jurisdiction. Existing agreements will be governed by current regulations.
The improved regulatory framework is also expected to attract bigger players and developers. For instance, ApnaComplex includes rental agreement assistance as part of its all-inclusive services in this segment. Apart from a critical value-add, this agreement is also part of our commitment towards promoting ethical practices in real estate.
If you want to know more about ApnaComplex one-stop rental management service, call us at 0120 71173344 or write to us at email@example.com