When a person has temporary possession of an item or commodity owned by someone else, he has to pay an amount or reward for utilizing and reaping benefits from that commodity which is known as rent.
The commodity can be anything such as a building, land, machine, residence,etc. Most people in India live in rented houses so tenants are required to pay rent and meet all the legal requirements and conditions given in rental agreements.
A rental agreement is a contract between landlord and tenant that contains some preconditions and terms of the property which will be rented or leased to the tenant. Rent agreements can be drafted by a lawyer or a legal authority or by ourselves too.
The Tenancy Act promotes rental houses in India. Rent can be paid on a monthly or yearly basis depending upon the type of agreement made between two parties. Drafting a rent agreement on your own can help save a few pennies and avoid future disputes.
Here are the steps to prepare a rent agreement on your own.
- A rent agreement can be created online or physically
- A rent agreement should be drafted including the terms and conditions that will be binding on the tenant and landlord in it.
- The documents are to be registered with the sub registrar’s office, until and unless the documents are registered ,they don’t have legal validity.
- During the registration process a stamp duty is to be paid .Stamp duty varies according to the city it has been registered in.
- According to the rent regulation if a house has been rented for more than a year, it is mandatory for the parties to get their rent agreements registered.
Documents required for Registration are:-
- Registration should be done with the sub-registrar. Both the parties tenant and landlord should be present along with two witnesses while getting their rent agreement registered.
- The original proof/evidence of ownership or the title of the property.
- Property documents such as tax receipts, Index 2, etc.
- Two photographs of each of the parties and one of each of the witnesses.
- Copy of the address proof of both of the parties and witnesses are to be submitted. Passport, Aadhar Card, Ration Card, Bank Passbook, or Driving Licence,any of them can be submitted too.
- Route map of the property leased out is to be given.
Essentials that are to included in a rent agreement are-
- Parties to the agreement and address of the property in the ownership
- Term of tenancy and terms to end it
- The rent charged and security deposit
- Facilities included with the rental
- Occupant name and number
- Terms and rules of the tenancy
- Damaged property, landlord access to the property for maintenance, repairs, and inspection,maintenance charges.
- Responsibilities and rights of landlord and tenant.
- Signatures of tenant and landlord.
By following these aforesaid steps a rental agreement can be drafted easily without the help of a lawyer or legal authority.
Draft Rental Agreement
This rent Agreement is hereby executed at _________ on this _________ between: –
1- _________ wife/son/daughter of Shri _________ resident of _________ (Hereinafter called the first party which expression shall includes her heirs, executors and assignees of the FIRST PART)
2- _________ son of _________ Resident of _________ (Hereinafter called the Second party /TENANT which expression shall includes his/her heirs, executors and assignees of the OTHER PART)
WHEREAS, the first party is the owner in possession of the residential _________ total measuring _________ and is interested to let out the same to the second party on monthly rental basis on the request of the second party and the terms & conditions of which are as under:-
NOW THIS AGREEMENT WITNESSETH AS UNDER: –
1- That the rate of the rent of the said premises is settled at Rs. ________/- (Rupees _________________________only) per month to be paid by the second party to the first party on 7th day of each English Calendar month in advance.
2- That the tenancy has already been commence w.e.f. ____________ and shall be for a period of __ months i.e. upto _____________.
3- That the period of the tenancy may be extended for its further period only on the option of the party of the first part and in that event the rate of the rent shall be increased at the rate of __% after __ months on its previous rate.
4- That the second party has paid a sum of Rs. _________ (Rupees _________) to the first party towards the security deposits which shall be refunded by the first party to the second party at the time of vacation of the premises in question, after adjusting all or any dues or arrears of the rent.
5- That no interest on the security amount shall be payable by the first party to the second party.
6- That in case the second party fails to pay the monthly rent to the first party consequently for the period of two months, then the second party shall have to get vacated the premises in question immediately.
7- That the second party shall handover the vacant physical possession of the rented premises to the first party at the time of expiry of the tenancy period positively.
8- That the second party shall abide by all the rules and regulations of the local authority.
9- That the second party shall use the rented premises only for residential purpose.
10- That the second party shall pay the electricity, water charges extra then the said agreed rent to the first party regularly as and when the bills for such expenses/charges are produced by the concerned authorities/offices.
11- That the second party shall not damage the fittings and fixtures fitted in the rented premises and shall keep and maintain the same in good condition and shall also make arrangements for the repairs or replacements of the damaged fittings and fixtures whatsoever, will be required at his own expenses.
12- That the second party shall not sublet, part with possession assigned the same to any person in any manner.
13- That the second party shall not make any constructions as in the rented premises without the written consent of the first party.
14- That the day-to-day repairs such as fuse, leakages in water taps etc. Shall be carried out by the second party on his own expenses and the major repairs such as cracks in walls and buildings etc.shall be born by the first party on his own expenses when so informed by the second party.
15- That the second party shall permit the first party or any of his authorized person to enter the said premises at reasonable time for inspection purpose.
16- That the first party shall pay all the taxes such as property tax, house tax, etc. as are or may hereinafter be assessed by the Local authorities or nay concerned authorities in respect of the premises in question.
17- That the second party shall have to give two months advance notice in writing to the first party, incase of his vacating the premises in question before the expiry period of the tenancy, and the tenancy may also be terminated by the first by giving ____ months advance notice to the second party for getting the premises in question vacated.
18- That the parties to this agreement have specifically agreed that the conditions of the location, accommodation and conditions of the said property/premises in question the agreed rent is a fair rent and is in the consequences with the prevalent market rates and second party has accepted it as a standard rent.
19- That the terms & conditions of this Agreement as stated above shall be binding on the both parties. The terms and conditions of this agreement are final and are irrevocable.
IN WITNESSES WHEREOF, the parties have signed this agreement on the date, month and year first above written in the present of witnesses at ______________
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This Agreement is executed on this _______ day of _____2004 at ___________
between ____________, ___________________ and presently working as __________. (hereinafter called the Landlord) and ______, and presently working as ____________. here-in-after called the tenant).
Whereas the landlord is the owner of the premises known as “_______________ “, situated at_________________________________________________ (Hereinafter called the premises).
IN WITNESS present, the tenant has taken the said premises on rent on the following terms and conditions:
1. That the tenanted portion of the premises shall consist of a ______________room set along with, a bath room and a latrine.
2. That the tenancy shall be for a fixed period, i.e. from ______ to __________.
3. That rent is Rs._________________/- (Rupees ___________________________ only) per month inclusive of M.C. Taxes. The rent shall be payable to the landlord in the first week of every month it relates. Water and electricity charges shall be payable by the tenant according to consumption.
4. The tenant has paid Rs. _______________ (Rupees________________________ ___ hundred) as security, which will be refundable at the time of vacation of the premises.
5. The tenant shall not sublet, assign or part with the possession of the premises without written consent of the landlord.
6. That as the owner of the demised building ________________________ does not require the premises for his own use and occupation for the time being, the demised premises are being let out on the terms of limited tenancy basis.
7. The tenant shall not cause and damage to the rented premises. In case any damage is caused, the cost of repairs shall be borne by the tenant.
8. That the tenant shall hand over the vacant possession of the premises to the landlord on ________.
9. That in case the tenant wants to vacate the premises prior to ________, he shall have to serve one month’s prior notice to the landlord in writing.
In Witness whereof the parties have signed this agreement at Coimbatore on the day mentioned above.
Rajat Rajan Singh
Editor-in-Chief at Law Trend
Advocate- Allahabad High Court Lucknow
Written by- Apurva Surve- Intern