Why Rent Agreement is Important?

Hunting for an appropriate home on rent which would meet all your requirements and furnishes a room of comfort? Then it would be less of headache now as many owners are renting out their residential properties in order to earn extra income. You might get palatial rooms and homes on rent but before you fall in love with the place make sure you have entered in to the contract or have signed a rent agreement with the owner of the house. This article highlights about the important features covered in the rent agreement and why it is essential to sign it.

A rent Agreement is a very crucial document to be considered before moving in to the property. It perchance entails all important terms and a conditions before the property is given out on rent to the tenant. The document specifies unbiased details of the parties involved. Many make mistake of not giving due heed it, as they lack knowledge about the important points to be incorporated in the document. The owner should incorporate all the vital details in to the form and on the other hand the tenant should careful read and scrutinize the document.

From the tenant’s perspective the rent agreement is of high importance and allows him/her to extract important data about the owners. Rent agreement comes to the rescue of the tenant if the owner asks them to vacate the place or increases the rent. It also divulges other important information as in mentioned below.

Background of the owner: –

Before entering in to the rent agreement make sure that you are dealing with actual owner or not. Several people fake and undergo treacherous deals without the knowledge of the actual owner. Relatives and caretaker raise the entire house or portion of the property on rent; to overcome the confusion and make things thread bare ask the owner about the utility bills of the house and the complex, or for NOC documents.

Terms and Conditions of Payment: –

Before entering in to the deal affirm to cross verify the payment amount mentioned in the document. It is necessary to scrutinize the rent amount, the period by which rent should be paid every month as if the tenant is not able to pay the rent till the specified period then penal charges are to be borne him/her. Also mode of payment, overheads charges to be borne by the tenant or be paid, the security deposited and the most important one to be given heed is rent escalation clause which is another important clause which should be paid attention, it incorporates the norms of increasing the rent and when it should be increased.

Tenure: –

A rent agreement period is usually 11 month, if the tenant and owner are willing to continue the deal further; the rent agreement has to be renewed after the period of 11 months.  The rent agreement can be even more but usually it is the period mentioned above.

The tenant is also expected to fill the indispensible details in the form so that the owner is aware of the background of the tenant and remains aware of the activities. With rising crime rates it becomes highly essential that the owner has track of all important documents of the tenants.

If tenant fails to check the rent agreement and sign it without carefully scrutinizing it then the tenant will be liable for trespassing. The document in fact holds importance to both and assures transparency. It is indeed legally important to have rent agreement to evade unnecessary future complexities.