On 21st October 2014, Housing.com launched yet another innovative service in the form of Online Rental Agreement that lets you create, customize and get home delivery of rent agreement for your property. In the first phase, this product has been launched in Bangalore city and will soon be extended to other cities of India. This service gives a platform through which you can create legally verified house rent agreement by selecting clauses as per the needs of your property through an exhaustive set of clauses. Here are the ten terms / clauses to include in your house Lease or Rental Agreement –
- Name and residential address of owner and occupants
It is important that you enter the correct name and residential address of both owner as well as occupants. The name should reflect exactly as what is in the supporting document such as PAN Card, Passport or a Driving License, and the same goes with address. In general, the owner is referred as lessor and the occupant can be termed as lessee.
- Complete details of the rental property
The agreement must have the complete address of the property to be rented including the pin code, landmark, city to which it belongs and the state. This is especially important for a renter to change the address in all the relevant documents/places such as banks, mutual funds, LIC policies, place of employment, to receive timely communications.
- Occupancy conditions
The agreement should clearly state the terms of occupancy such as the property being solely for residential purpose and that no commercial activity would be entertained under any circumstances. It must also include the clause restricting the tenant from using the flat for paying guest accommodation.
- Tenure of contract
The rental period must be stated without any prejudice. Also, start and end date of the contract must be specifically mentioned. A typical leave and license agreement is valid for a duration of 11 months.
- Late fee charges, if applicable
- Cheque bounce charges
- Grace period to enable the occupant to pay the rent in case of any unforeseen circumstances
- Details of deposit and the refund process
All details related to deposit should be mentioned in your contract such as:
- When and how the tenant needs to pay this to you. Typically the deposit is paid through cheque before moving in
- Mode and date of refund
- Charges to be deducted from deposit in case of any damage to property including the upper limit
- Mention about the miscellaneous charges
In order to avoid any friction later, it is best to mention all the miscellaneous charges that come associated with property such as light and water bill, society maintenance charges, etc. and should be decided upfront as to who will pay this amount.
- Include information on parking, storage areas and furnishings
Parking is an issue with almost all societies and this should therefore be addressed upfront in order to avoid any disputes that could lead to larger issue. The rules of parking associated with the flat and its charges must be clearly stated in the Rental Agreement along with the details on storage area and furnishings.
- Notice period to end the contract
The notice period is a critical part of any contract. In general, the notice period given by both landlords as well as tenant is 3 months if the contract is to be terminated before the expiry of its actual term.
- Conditions that could lead to termination of Rental Agreement
Last but not the least, the terms and conditions that could lead to termination of contract must be stated in detail in Lease or Rental Agreement. This is important so that the evacuation process is smooth and the owner gets peaceful possession of the property. This also ensures that the tenant is not troubled and gets sufficient time to scout for another apartment.