Why to have a rental agreement ?

Why is Rental Agreement is important for both the landlord and the tenant?

A rent agreement is a contract between a tenant and owner in which the owner agrees to lease out his or her house to the tenant at an agreed monthly rent. This is a legal document that both parties have to abide by. Many properties in the country are available for rent. However, some owners or landlords make verbal commitments to their tenants and do not have a legal or written agreement. Such commitments or agreements may not ensure that your right as a tenant is not violated.

It Protects the Rights of both Parties
A written agreement mentions all the terms and conditions that have been agreed upon by both the landlord and tenant. It protects the rights of both parties in case of any violation or issues related to the property. Any changes in the agreement need to have mutual consent of both parties. This acts as proof of ownership of the property.

You are Not Being Charged Anything Extra
When the terms and conditions are agreed upon between the tenant and landlord, it also mentions all the bills that the owner expects to be paid by the tenant. The written agreements include everything from the rent expected, the total tenure of the rental, deposit given by the tenant, etc. This ensures that nothing extra is being charged apart from what is mentioned in the agreement. This way the owners cannot take advantage of the tenant and tenants are not exploited.

It Mentions the Date of Increase in Rent
Most of the rental agreements are made for 11 months in India. After the first agreement ends, the rent is usually increased by the landlords. The percentage of increase in the rent and when it will increase is mentioned in the agreement. Hence, this will ensure that you are not giving an increased rent before the actual due date.

It Protects you from Unprepared Evacuation
There may a chance that the owner or the landlord may want to sell his or her property. The rent agreement has a clause that talks about the evacuation of the house in such a scenario. The tenant is given a few months’ notices before the owner can sell the house. He or she cannot ask the tenant to vacate the house without any prior notice. This will give you some time to hunt for another house for yourself.

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