Arguably the most important piece of document between a tenant and landlord. A rental/lease agreement is a legal document stating that the owner and the tenant agree on the terms and conditions of the rental rules and the deal.
Tip: Obtain a copy of the rent agreement and make sure to scour through the document thoroughly before signing.
Some things that will be covered under the rent agreement is:
- Rent Tenure
- Rent Amount
- Security Amount
- Rent Payment Date
- Any Panel Payment if rent is late
- Facilities for Tenant
- Rent Escalation Clause
- Renewal Terms after the contract Expires
Most arguments and disputes occur over both parties not being clear of the terms and conditions. The rental agreement is something that should be thoroughly looked through for this reason.
Owner of the Location
Often seen in India, NRIs tend to purchase homes and leave them in the hands of caretakers. These caretakers lease them to other people which is not allowed without the consent of the original owners of the house. It is mandatory for the landlord to provide documents to verify the identity of the owner of the house. A NOC from the housing society is mandatory and a sale deed is enough for this purpose.
Note: In case the property is mortgaged, the sales deed will be in the custody of the bank and NOC is to be obtained from them.
This is a common practice taken up by landlords in India. Commonly abbreviated as FD and Security Deposit, this is done to ensure landlords are not affected by damaged facilities or unpaid utilities. The amount of the deposit varies from area to area. For example, in Maharashtra there is no regulation and hence a landlord can ask for 6 months rent as a fixed deposit whereas in Delhi, the Delhi Rent Control Act prevents landlords from demanding for more than one months rent for deposit.
Flat Upkeep and Maintenance
While significant damage is taken up by tenants, normal wear and tear are born by the landlord. In some properties, maintenance is paid for by the landlord. For this reason, additional charges should be cleared from the get-go. For example, is maintenance included in the rent? What about electricity and water charges? What counts as significant damage according to the landlord? Nothing triggers either parties like an unexpected bill.
Notice Period, Eviction and Penalty
Notice Period is the amount of time given to a tenant for a number of reasons. For paying a penalty for not complying with the rent agreement. For eviction of the house. For making a new agreement during a transfer of ownership. It is key for the landlord to inform the tenant of their notice period in advance. If not given enough notice period, the fault comes on the landlord.
While these are some of the key elements to be cleared, there is a lot more. Often, legal counsel is advised. But how can one get legal counsel during a time when social distancing is a strict norm. Doqfy has you covered. With legal counsel and stellar services like online notarization, e-Stamping and a whole plethora of services from the legal world, Doqfy is the answer to all your legal queries in 2020.