What Is a Rental Agreement?

A rental agreement is a contract that is usually executed between the property owner (Landowner) and a tenant who desires to have temporary possession of the property for a fixed term as per the agreement.

Common terms to include in a Rental agreement?

While preparing a rental agreement it is important to include that few legal terms to be part of the agreement. These terms include a security deposit, duration of the contract, list of fixtures, restrictions, the allowance of pets, usage of amenities, and more, here are a few common yet important terms that must include in a rental agreement.

Information of the Occupants

It is important to have all the names of the occupants along with permanent addresses in the rental agreement so that it brings about clarity about every individual living in the rented property.

Duration of the stay

This term is important to make sure that the tenant will vacate the property as per the agreed timelines and will not try illegally to take possession of the said property, mentioning the duration of the stay in a rental agreement can leave the owner on a safer side legally. And for the tenant’s benefit, the property owner cannot illegally force the tenant to vacate the place before the decision at the time of the stay, if it is on the rental agreement.

The Amount of Rent

The rental amount that the tenant has to pay is very specific. Amount mentioned is the sum of money you need to pay every month, the date upon which the monthly rent needs to be paid, and the fines for any late payments. This is done so that both parties know clearly what needs to be done and state that no illegal money-related requests take place.

Maintenance Costs

The maintenance cost is either the tenant’s or landlord’s responsibility, it varies from property to property. This states that any damage is done, or costs for major or minor repairs are mentioned in the rental agreement so that there is no confusion post the duration of the tenancy and so that there is no miscommunication

Rules to be Followed

This mentions the rules regarding the safekeeping and treatment of the property and its surroundings. Things like, subletting the space and causing alterations to the property are mentioned here.

Renewal of the Rental Agreement

This mentions the date of the renewal of the agreement, if the tenant is staying for a longer period that extends post the decided-upon duration, then they need to sign the agreement again.

Amenities

This here mentions the amenities that are provided to the tenant. Their condition and if they require any repairs etc.

Exit Clause

If the tenant is leaving before the decided-upon time, then she/he would have to abide by the rules of the exit clause, pertaining to the agreement.

Date and Signatures

Lastly, both parties need to initial the agreement for proof, stating that they agree with all the clauses and rules. Failure of doing so might lead to unwanted legal action.