5 Key Clauses to Include in Your Rent Agreement
Posted by rentalagreement on June 10th, 2019
No matter whether you're a landlord or tenant, having a good rental agreement is a must for both the parties. A rent agreement is a document signed by both the landlord and tenant which includes the terms of the lease. It's a legal binding which binds both the parties to fulfill their respective duties. In case of a default, a good rent agreement with a proper rental agreement format and key clauses can help the aggrieved party to claim damages.
There are some important key clauses which must be present in a rental agreement to secure the interest of both the parties. Let's have a look at those key clauses which makes a rental agreement effective and avoid any kind of future disputes.
5 important Clauses Which Must Be Present in a Rental Agreement
A Security clause must be present in a rental agreement which must mention all the important terms related to the duration and payment of security amount. Security deposit is always refundable, so you should mention this in the security clause of the rental agreement.
The rental agreement must also have a rent payment clause stating the terms and amount of total rent payable. Along with this, if any additional payments are to be made, then those payments must be clearly mentioned in the rental agreement.
The rental agreement must also include the details of the fittings and fixtures provided by the landlord. All of the fixtures must be in working condition.
As a tenant, you must also check whether they are working properly before signing the agreement. Along with the list, a clear description of each and every fixture must be made in the rental agreement format.
Most of the rental agreements are executed for a period of 12 months, but you can also extend the period. The only condition is to clearly mention the period in the rental agreement format. The terms of renewal including the renewal charges must also be mentioned in the rental agreement.
A rental agreement must also contain a lockout period within which neither the tenant nor the landlord can terminate the agreement. It must also state the consequences in which the rental agreement can be terminated.
Both the parties must register the rental agreement, otherwise, it won't be enforceable in the court of law. it is mandatory to protect the interest of both the parties in case of the default.
In order to get a rental agreement registered, you would have to pay charges such as stamp duty and registration fee. Generally, both the landlord and tenant contribute to pay the charges and it must also be mentioned in the rental agreement.
A restriction clause must also be present in the rental agreement which shall state the things not allowed by the landlord. For instance, some landlord doesn't allow their tenants to have pets. If this was the case, then it should be clearly mentioned in the rental agreement.
A rental agreement must also include a damages clause. In this clause, all the consequences should be mentioned under which a tenant is liable to pay those damages.
That's it! These were the important clauses which must be present in any agreement to secure the interest of both the parties. All of these must be present in a rental agreement to avoid any consequences of future disputes.
If you've found this guide useful, then don't forget to share it with your friends, family, and relatives. If you've any doubts, then let us know in the comment section below.
Read More:- Why Rental Agreement is made for 11 months only?Also See: Rental Agreement, Key Clauses, Rent Agreement, Agreement Format, Rental, Agreement, Landlord
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