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Posted on June 29, 2021
Rental Agreement Format Online
- What is a Rental Agreement
- Contents included in a Rental Agreement
- Terms and conditions included in a Rent agreement
- Security deposits
- Rental agreement sample format in Word
- House rental agreement
- Rental agreement online 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, usually written, executed between the owner and a renter or tenant of a property who desires to have temporary possession of the commercial property or any residential property. The agreement describes the term of the rental, the parties, the property, the rent amount for the term and so on. The rent agreement must be free from errors to protect the interests of both parties and the document should serve as evidence in case of a dispute.
You require a rental agreement in the mentioned below cases:
- While renting an apartment or house, room or any commercial space.
- To register the agreement with local authorities.
- To document & enforce general and specific clauses.
What is a Rental Agreement
A rent agreement is a legal written document that holds the pre-discussed terms and conditions under which the rented place or house or apartment or property is leased out. This written agreement has to be followed by the landlord or the property owner and the tenant. In India, while entering into property rentals, most of the rental agreement will have a lease period of about 11 months.
Rent Agreement laws
In India, the rental agreement is governed by state laws. These agreements fall under the ambit of the Rent Control Act and each state holds its own Rent Control Act. such as Rent Control Act (1958) Delhi, Rent Control Act (1999) Maharashtra, and in our state, Tamil Nadu Buildings (Lease and Rent Control) Act (1960) Chennai govern the rent agreements.
Contents included in a Rental Agreement
Common contents included in a rental agreement are as follows:
- Names of the owner of the property and tenant or renter and/or their agents.
- Description of the apartment or house or property.
- Amount of rent and due dates for rent payment, details of the grace period, and charges for late rent payment.
- Mode of payment to pay the rent for the property.
- Ways to terminate the rental agreement prior to the expiration date and the charges for terminating the rental agreement prior to the expiration date.
- Details about the security deposit.
- Utilities furnished by the owner of the property and if the owner charges for those furnished utilities, how the charge will be obtained.
- Facilities on the rented property which the tenant or the 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 repair requests are managed and procedures for emergency requests.
Terms and conditions included in a Rent 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.
- 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 which are provided by the owner, and the details about the utilities to which tenant is responsible.
In India, an advance or security deposit for the rented property is also paid by the tenant to the owner of the property which has to be repaid at the time of cancellation or termination of the rental agreement or contract. Generally, the security deposit is calculated anywhere from 2 or 3 months to 10 months of the rent amount. And it is usually given at the time of signing the rental contract.
A part of the security deposit or advance can be used by the property owner towards any damages caused to the utilities, furniture, appliances, electrical items, and so on, by the renter or tenant. At the time of the rental agreement or contract cancellation, the landlord has to return the remaining amount of deposit to the tenant, and the landlord can deduct the security deposit towards the damages in the rental property.
Rental agreement sample 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.
_________________ son of _________________, resident of _________________________________ (hereinafter called the tenant/Renter/Second party) of the other part, 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 with residential House or apartment of Flat No. _____________________________________ and he has agreed to let out the said flat or house 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 1st on 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 should use the property for residential purpose only and should not use for any commercial purpose.
- The tenant has no rights or power to sub-let or art with a certain portion or part of the property to any person.
- In case the tenant fails to pay rent for two months or more, then the landlord can ask the renter to vacate the premises.
- The tenant has to pay the electricity bills every month on his own responsibility and this amount is not included in the monthly rental ___________.
- The tenant has to keep the rental premise in a good condition and maintain all the fittings and fixtures properly (the second party shall not damage the fixtures and fittings and maintain them properly). In case there is any damage, the tenant has to bear the repair charges himself.
- The rented premise should be maintained the way it has been rented out to the tenant. The tenant or renter cannot make any alterations or construction to the residential premise or house or apartment without the permission of the owner of the premises or landlord.
- The landlord of the property or any authorized person on the behalf of the owner has a right to inspect the rented property or residential premise at any mutually convenient time.
- In case the tenant or the renter decides to vacate the premise upon completion of the rental agreement period then both the parties (landlord and tenant) should serve one month notice to each other.
- Whatever terms and conditions are mentioned in the rental agreement is abiding by both the parties then these terms and conditions are final and are irrevocable.
This agreement is agreed and signed by both the parties (owner and the tenant) on this day, date, month and year in the presence of witnesses at _____________.
1- FIRST PARTY
2- SECOND PARTY
___________ (name of the owner or landlord) _________________ (name of the proposed Company)
You can modify the terms and conditions of the rental agreement according to your understanding with the tenant/landlord. The notarized 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 in return for making them legally effective. In Tamil Nadu, the Stamp Duty paid for rental agreements is usually 1% of rent+deposit amount irrespective of the lease term.
Usually for rental agreements for period below 11 months, twenty rupees Stamp papers are used. Above 11 months it depends on the amount of annual rent plus security deposit. 1% of the total amount is the Stamp duty.
If the required stamp duty is not paid, should any dispute arise and matters go to court, parties involved may have to pay almost ten times the actual Stamp Duty.
Rental agreement online Bangalore
- User customizes the Rent agreement Template by entering all the requisite details.
- User enters the denomination of stamp paper required.
- User mentions the delivery contact details or email details (for E-stamped Rent Agreements) and makes a successful payment. You may also order multiple copies to the same address.
- Kanakkupillai gets the document printed on the stamp paper of denomination requested, completes the documentation as per template chosen 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 has been done, now you are all set to print the rental agreement, but before that go through the following check-list. The mentioned below pointers will ensure that your rental agreement is error-free:
- Print the rental agreement on Stamp Paper.
- Both the parties (the owner and the tenant) put their signatures at the bottom of every page of the rental agreement.
- The rental agreement should also hold the witnesses signatures with their full name and address.
- The rental agreement should also include complete information on the dimensions of the property.