A Lease Agreement is a legal document signed between a property owner and an occupant to lease a residential or commercial property. The individual who owns the residential or commercial property is called the property owner and the person who takes the residential or commercial property on rent is referred to as the tenant. A rental arrangement is extremely crucial as it contains all the terms related to renting a specific residential or commercial property in written form. Renting a residential or commercial property without a written agreement is extremely dangerous as it can lead to legal issues in the future. An oral rent contract is not legally permissible so if there is an oral agreement in between landlord and occupant either party can repudiate the arrangement in such case the other celebration needs to prove the material of the agreement which is quite difficult.

A rent arrangement is normally drafted by the lawyer with the mutual consent of the occupant and landlord, however it must be prepared with the shared authorization of both celebrations and signed by both parties in the presence of two witnesses. A written rental contract acts as proof of a shared contract between the celebrations and is admissible as evidence in court and the regards to this arrangement can not be altered without the permission of both celebrations.

KINDS OF RENT AGREEMENT

A lease contract is usually of 3 types specifically lease contract, lease agreement, leave and license arrangement. Among the three kinds of a rental agreement, whichever kind of agreement is participated in, both parties are bound to abide by its conditions. If the terms of the rental arrangement are breached, the other celebration can go to court to recover its due rights. However, the 3 kinds of rental arrangements are gone over below;

• Rent arrangement: A rent agreement is a conditional legal contract between the proprietor and the occupant. It is a mutual arrangement in between the proprietor and occupant that permits for a hassle-free settlement between the celebrations in the future.

• Lease agreement: A lease deed is a kind of legal file that transfers ownership of a residential or commercial property for a specified amount of time in consideration of a promised price. A lease arrangement is usually made for the long-term leasing of a residential or commercial property.

• Leave and accredit agreement: A leave and license contract is a legal file in which a residential or commercial property owner permits a person to use his residential or commercial property for a particular period of time in exchange for a specified license charge, it does not transfer the ownership of the residential or commercial property. A leave and license contract in between proprietor and occupant is commonly utilized to lease a domestic property.

BENEFITS OF RENT AGREEMENT

The advantages of a composed rent agreement are as follows:

• A written rent contract is made with the permission of the occupant and the property manager.

• The terms of a lease agreement are set upon the authorization of both parties.

• It secures the rights of both parties and also secures them from future disagreements.

• It offers security to the property owner's residential or commercial property and safeguards occupants from illegal claims by property managers.

• It is acceptable as evidence in court.

IMPORTANT CLAUSES OF THE RENT AGREEMENT

A lease agreement is prepared with the approval of both parties. However, the stipulations that need to be consisted of in a rental contract are mentioned below.

• Details of parties: This is the first stipulation of a rental agreement. This provision determines the celebrations to the contract. In order to determine the celebrations to the lease arrangement it is important to mention their name, age, faith, occupation, address, etc in the contract. If one of the celebrations to a rental agreement is a company, the name and address of that company need to be consisted of in the arrangement and also the name, age, father's name, occupation, address, and designation of the person representing the organization should be pointed out.

• Description of rented residential or commercial property: A comprehensive description of the residential or commercial property in respect of which a rental contract is being prepared should be discussed. It is likewise really important to mention that this residential or commercial property is supplied or unfurnished, if furnished then what furniture remains in the residential or commercial property must be mentioned. If a rent arrangement does not supply a comprehensive description of the residential or commercial property, there remains a high possibility of future disagreements.

• Tenure of agreement: The tenure of a rental agreement depends on both parties. The period of the tenancy contract is not repaired, it can never ever be said that the occupancy of a residential property does not go beyond 11 months. However, when preparing a rental agreement, it is very essential to define its period and likewise the start and end dates of the arrangement.

• Purpose of lease: It is crucial to discuss the purpose for which an occupant is renting the residential or commercial property and also it is really important to point out that no anti-social activities can be done on the residential or commercial property. If the function of the lease is not specified, the occupant will do as he pleases in the residential or commercial property and the property owner might face issues in the future.

• Rent and security deposit: The monthly rent of the residential or commercial property and the security deposit are a part of the rental contract which need to be plainly mentioned and it is likewise important to mention the particular date on which the rent will be paid each month. If there is any condition of increase in rent after a specific period then it must be pointed out.

• Maintenance expense: Nowadays, the trend of living in flats has increased but the owner has to pay month-to-month upkeep charges to maintain the typical location of the flat. Maintenance expenses must be spent for residing in a flat, so the occupancy contract must specify who will pay the maintenance costs between the owner and the renter.

• Lock-in period: If there is a condition that the tenant can not leave your house for a specific duration or the property manager does not ask the tenant to abandon your house then this lock-in period should be specified in the agreement.

• Duties and responsibilities: The duties and responsibilities of both parties must be clearly stated in a rental arrangement. Both parties will be bound to abide by the terms and conditions discussed in the arrangement. The responsibility of the renter is to pay lease on time, look after the residential or commercial property and preserve peace and order. On the other hand, the task of the property manager is to keep your home in a rentable condition and maintain the water and electrical energy supply on time.

• Renewal, termination, and notification duration: A provision for an extension of the lease arrangement need to be consisted of in the agreement. The contract must define whether the occupant can restore the arrangement at the end of the term.

The arrangement should contain an option that the tenant can end the rental arrangement before completion of the term and it can also mention that the property owner can ask the renter to cancel the contract before completion of the term and leave the premises if the landlord needs the residential or commercial property. In this case, the celebrations shall inform each other with a maximum of 2 months' composed notification. Both celebrations might equally decide on an extension, renewal or notice duration before the agreement is prepared.

• Dispute resolution: One of the most vital parts of the contract is the way to deal with the problem. Disputes can develop between property managers and occupants at any time, so it is very important to specify in the agreement how conflicts can be dealt with. The court, arbitration, and conciliation are the most common ways to fix disagreements between proprietors and renters.