- Introduction
- What is a Rental Agreement
- Contents included in a Rental Agreement
- Terms and conditions are included in a rental agreement
- Security deposits
- Rental agreement sample format in Word
- House rental agreement
- Rental agreement online in Bangalore
- How is the rental agreement executed legally, valid and enforceable?
Rental Agreement Format and its Terms and Conditions
A rental agreement is a legal contract, typically written, executed between the owner and a renter or tenant of a property who desires to have temporary possession of the property, whether commercial or residential. The agreement outlines the rental term, parties involved, property details, rental amount for the term, and other relevant information. The rental agreement must be free from errors to protect the interests of both parties, and the document should serve as evidence in the event of a dispute.
>The rent agreement should include the names and address of the landlord and the tenant, terms of the tenancy, period of tenancy, rent and security deposit amount, restrictions on both parties, conditions for termination of the agreement, conditions for renewal, charges including company registration
You require a rental agreement in the following cases:
- While renting an apartment, house, room, or any other commercial space.
- To register the deal with the local authorities.
- To document & enforce general and specific clauses.
What is a Rental Agreement
A rental agreement is a legally binding written document that outlines the pre-discussed terms and conditions under which a rented place, house, apartment, or property is leased. This written agreement must be followed by both the landlord or property owner and the tenant. In India, when entering into property rentals, most rental contracts typically have a lease period of approximately 11 months.
Rent Agreement Laws
In India, rental agreements are governed by state laws. These agreements fall under the ambit of the Rent Control Act, and each state holds its own Rent Control Act. For instance, the Rent Control Act (1958) in Delhi, the Rent Control Act (1999) in Maharashtra, and the Tamil Nadu Buildings (Lease and Rent Control) Act (1960) in Chennai govern rent agreements.
Contents included in a rental agreement in Tamil Nadu, Word format
Common contents included in a rental agreement are as follows:
- Names of the owner of the property and the tenant or renter and/or their agents.
- Description of the apartment, house, or property.
- Amount of rent and due dates for rent payment, details of the grace period, and charges for late rent payment.
- The mode of payment for the property rent.
- Ways to terminate the rental agreement prior to its expiration date, along with the associated termination charges.
- Details about the security deposit.
- Utilities furnished by the property owner, and if the owner charges for these utilities, how the charge will be obtained.
- Facilities on the rented property that the tenant or renter is entitled to use, such as security systems, swimming pool, gym and so on.
- Rules and regulations for certain activities, such as pet rules, noise rules and the charges for violation.
- Identification of parking space for the rented property, including designated parking spaces, if any.
- How the renter or tenant’s repair requests are managed, and procedures for emergency requests.
Terms and conditions are included in a rental agreement
Below are the terms and conditions commonly included in a legally written Rent agreement
- Duration: Period or duration for which the rental agreement will be valid.
- Deposits: The amount of deposit required (if any) and conditions for return or adjustment of deposit at the end of the rent period.
- Rent: The consideration or payment made by the tenant to the landlord in exchange for the property that is rented out.
- Terms of Use: The purpose for which the property or house or apartment is to be used, and the terms and conditions regarding the usage of the property.
- Repairs and Maintenance: Details about the party who is responsible for repairs and maintenance of the rented house or property – landlord or tenant.
- Utilities: Details about the furnished utilities that the owner provides, and the details about the utilities to which the tenant is responsible.
Security deposits
In India, a security deposit for the rented property is also paid by the tenant to the property owner, which must be repaid at the time of cancellation or termination of the rental agreement or contract. Generally, the security deposit is calculated as anywhere from 2 to 10 months’ rent. And it is usually given at the time of signing the rental contract.
>The property owner can use a portion of the security deposit or advance to cover any damages caused to the utilities, furniture, appliances, electrical items, and other property by the renter or tenant. At the time of rental agreement or contract cancellation, the landlord must return the remaining deposit amount to the tenant. The landlord may deduct the security deposit to cover damages to the rental property.
Rental agreement format in Word
Indian Rental Agreement
This Rent agreement is hereby performed at ____________ on this ________ day of ___________ between:
________________ son of _________________ R/o ______________________ (hereinafter referred to as First party/landlord), this term would include his heirs, legal representatives, successors, and assigns, etc.
>AND
_________________ son of _________________, resident of _________________________________ (hereinafter called the tenant/Renter/Second party) of the other party, which expression shall mean and include his heirs, legal representatives, successors, and assigns, etc.
>The premise is in the possession of the owner, the first party, comprising a residential house, apartment, or flat. _____________________________________ and he has agreed to let out the said flat, home, or property on a monthly rent basis to the tenant/second party.
NOW THIS AGREEMENT WITNESSETH AS UNDER: –
- The monthly rental of the agreement property is agreed and fixed at Rs___________/-(Rupees) per month, excluding electricity, water and other incidental charges.
- This rental period is in effect from the 1st of the agreed month till 11 months. 1st day of _______________
- The tenant or the renter should deposit a sum of Rs. ____________/- (Rupees __________ only) as the security amount, which can be adjusted/ refunded at the time of vacating the rented premises.
- The tenant must use the property exclusively for residential purposes and may not use it for any commercial purposes.
- The tenant has no rights or power to sublet or assign a particular portion or part of the property to any person.
- If the tenant fails to pay rent for two months or more, the landlord may request that the tenant vacate the premises.
- The tenant is responsible for paying the monthly electricity bills, and this amount is not included in the rental amount.
- The tenant must keep the rental premises in good condition and maintain all fittings and fixtures properly (the second party shall not damage the fixtures and fittings and shall maintain them properly). In the event of any damage, the tenant is responsible for bearing the repair charges himself.
- The rented premises should be maintained in the same condition as when they were rented out to the tenant. The tenant or renter cannot make any alterations or construction to the residential premises, house, or apartment without the permission of the owner of the premises or landlord.
- The landlord of the property or any authorised person on behalf of the owner has the right to inspect the rented property or residential premises at any mutually convenient time.
- In the event that the tenant or renter decides to vacate the premises upon completion of the rental agreement period, both parties (landlord and tenant) should serve one month’s notice to each other.
- Both parties agree upon the terms and conditions mentioned in the rental agreement, which are final and irrevocable.
This agreement is agreed and signed by both parties (owner and the tenant) on this day, date, month and year in the presence of witnesses at _____________.
>WITNESSES: –
1- FIRST PARTY
2- SECOND PARTY
___________ (name of the owner or landlord) _________________ (name of the proposed Company)
Lessor Lessee
You can modify the terms and conditions of the rental agreement according to your understanding with the tenant/landlord. The notarised agreement does not consider a registered agreement. Tenants or renters need to pay stamp duty and registry charges on the rental agreement.
House rental agreement
Stamp Duty is essentially a form of tax levied on legal documents to make them legally effective. In Tamil Nadu, the Stamp Duty paid for rental agreements is typically 1% of the rent plus the deposit amount, regardless of the lease term.
Usually, for rental agreements with a period of less than 11 months, twenty-rupee Stamp papers are used. Above 11 months, it depends on the annual rent amount plus the security deposit. 1% of the total amount is the Stamp duty.
>If the required stamp duty is not paid, and any dispute arises that goes to court, the parties involved may have to pay almost ten times the actual Stamp Duty.
Rental agreement online in Bangalore
- The user customises the Rent agreement Template by entering all the requisite details.
- The user enters the denomination of the stamp paper required.
- The user mentions the delivery contact details or email address (for E-stamped Rent Agreements) and makes a successful payment. You may also order multiple copies to the same address.
- Kanakkupillai obtains the document printed on the requested stamp paper denomination, completes the documentation according to the chosen template, and delivers it to your doorstep or email ID (for e-stamped Agreements).
How is the rental agreement executed legally valid and enforceable?
Once all the above steps have been completed, you are now ready to print the rental agreement. However, before doing so, please review the following checklist. The following pointers will ensure that your rental agreement is error-free:
- Print the rental agreement on Stamp Paper.
- Both parties (the owner and the tenant) sign at the bottom of every page of the rental agreement.
- The rental agreement should also include the witnesses’ signatures, along with their full names and addresses.
- The rental agreement should also include complete information on the property’s dimensions.
