landlord and tenant disputes

What about notice period and penalty?

If either party fails to honour the terms and conditions of the agreement, it will become invalid and the aggrieved party could claim penal charges. Therefore the agreement should also include notice period and penalty for cancelling the agreement without completing the specified period. Normally a one-month notice period is served.

What is Rent escalation clause?

A tenant should verify whether the landlord has included a “rent escalation clause” in the agreement, which could be used to increase the rent after a certain period say after six months. Verify whether the agreement mentions the date after which rent charges would increase and the percentage of increase.

What does safety deposit amount stand for?

The safety deposit amount to be paid for the duration of the lease may be negotiated. Technically, the safety deposit amount is calculated as the first three months' rent which is fully refundable after the amount of repair and maintenance deductions.

What’s the duration of the notice period prior to the termination of the lease?

The duration of the notice period prior to the termination of the lease depends on the period of the agreement. Once signed, the landlord needs to give the tenant a duplicate copy of the agreement within 10 days of signing or the tenant may withhold the rent till they receive the copy.

What are the main terms that a rent agreement includes?

The main terms of a rent agreement include:

  • Amount of rent to be paid every month
  • The amount of safety deposit to be paid to the owner on a return basis
  • Period of rental agreement
  • Number of people occupying the property
  • Type of lease – residential or commercial
  • Maintenance issues – who will pay the monthly maintenance bills (in case of a property in a housing society), minor repair work charges, major repair work charges and so on
  • Termination of lease rules

What are the additional clauses for a 36-Month rent agreement?

While executing the rental agreement for 36 month, the additional clauses include the following:

Average increase of 5-7 per cent on an yearly basis
Either party can terminate the rent agreement by giving a notice in three month advance without mentioning any reason for termination and conditions as standard.

How can a lease be registered?

All you need to get the lease registered is to visit the property registrar office, pay the stamp duty on the tenure of the lease and register the lease. Following these simple steps can help you getting into unwanted troubles.

If one wants, can a rent agreement be made for more than 11 months?

It is not compulsory to make a rent agreement only for 11 months. Renewable/extendable agreements for three to five years can also be made and registered. However, the stamp duty and registration charges for longer duration may differ.

Rent agreement: Why only for 11 months?

One reason stated for 11 month agreement is to skip the registration process.  As per the Registration Act, 1908, clause (d) of sub-section (1), registration of the property that is on lease for one year or more than a year is compulsory.

Why is it necessary to get a rent agreement while taking any house on rent?

A rental / lease agreement is a legal document stating that owner and the tenant agree to follow the rental rules and the deal. To ensure the validation of the rent agreement, both the landlord and the tenant sign the agreement in presence of two people who are non-beneficiaries of the property.


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