A rental agreement, also known as the rental deed or lease deed, is an official contract which is signed between the owner of a property and the tenant. A tenant is a person who wishes to take possession of the property temporarily for a stipulated amount of time. A Residential Rental Agreement is drafted on a stamp paper and has the basic details of the residential property, including the following:
Name of the owner of the property
Name of the tenant or renter
Terms of the rental
Amount of rent for the mentioned term
Rental contracts in India are categorised into two types. These are:
Lease agreement: which lasts for at least 12 months and is governed under the Rent control Laws of the Govt.
Lease and License agreement; which lasts up to a maximum of 11 months and does not fall under the Rent Control Laws.
Basic terms in a Rent agreement
The following are the basic terms which are included in a Residential Rent Agreement. These are as follows:
Duration of the period for which the rental agreement has been signed.
The rent or the payment which has been made by the tenant to the landlord for staying in the property which has been rented.
There might an amount which might be required to be deposited at the very first time. This deposit is returned back after the rent period expires after making the adjustments (if any).
The Rental agreement specifies which utilities are included in the rent and which are not.
One of the most often used terms in the Rent Agreement is insurance. It mentions if the tenant has to insure the property or not.
The Residential Rental Agreement also specifies the Repairs and Maintenance of the property, and either it is the responsibility of the tenant or the landlord.