A Lease Agreement is a legal file signed between a proprietor and an occupant to lease a residential or commercial property. The person who owns the residential or commercial property is called the property manager and the individual who takes the residential or commercial property on rent is understood as the occupant. A rental contract is very essential as it contains all the conditions connected to renting a particular residential or commercial property in written kind. Renting a residential or commercial property without a written agreement is really hazardous as it can cause legal problems in the future. An oral rent agreement is not legally acceptable so if there is an oral agreement between property owner and renter either celebration can repudiate the agreement in such case the other party needs to prove the material of the contract which is quite impossible.

A lease arrangement is typically drafted by the attorney with the shared authorization of the occupant and landlord, however it must be prepared with the shared approval of both celebrations and signed by both celebrations in the presence of two witnesses. A written rental arrangement acts as evidence of a mutual contract in between the celebrations and is permissible as proof in court and the terms of this agreement can not be altered without the approval of both parties.

KINDS OF RENT AGREEMENT

A rent contract is usually of three types particularly rent contract, lease contract, leave and license agreement. Among the three types of a rental contract, whichever type of contract is participated in, both celebrations are bound to adhere to its conditions. If the terms of the rental contract are broken, the other party can go to court to recuperate its due rights. However, the 3 kinds of rental contracts are gone over below;

• Rent arrangement: A rent arrangement is a conditional legal contract between the landlord and the renter. It is a shared agreement between the property manager and occupant that enables a problem-free settlement between the parties in the future.

• Lease arrangement: A lease deed is a type of legal file that transfers ownership of a residential or commercial property for a given amount of time in factor to consider of a guaranteed price. A lease contract is normally produced the long-term rental of a residential or commercial property.

• Leave and certify arrangement: A leave and license arrangement is a legal file in which a residential or commercial property owner permits a person to use his residential or commercial property for a specific duration 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 agreement between property manager and tenant is commonly utilized to lease a home.

BENEFITS OF RENT AGREEMENT

The advantages of a composed rent agreement are as follows:

• A composed rent contract is made with the approval of the renter and the landlord.

• The conditions of a lease arrangement are set upon the approval of both celebrations.

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

• It provides security to the property owner's residential or commercial property and secures tenants from illegal claims by property managers.

• It is permissible as evidence in court.

IMPORTANT CLAUSES OF THE RENT AGREEMENT

A lease arrangement is prepared with the approval of both celebrations. However, the provisions that need to be consisted of in a rental agreement are pointed out listed below.

• Details of celebrations: This is the first clause of a rental agreement. This provision identifies the parties to the agreement. In order to recognize the parties to the rent arrangement it is important to discuss their name, age, faith, occupation, address, and so on in the agreement. If one of the celebrations to a rental arrangement is an organization, the name and address of that organization should be consisted of in the contract and likewise the name, age, father's name, occupation, address, and classification of the individual representing the company ought to be mentioned.

• Description of rented residential or commercial property: A thorough description of the residential or commercial property in respect of which a rental contract is being prepared must be pointed out. It is also very crucial to mention that this residential or commercial property is provided or unfurnished, if furnished then what furniture is in the residential or commercial property needs to be mentioned. If a rent arrangement does not offer a comprehensive description of the residential or commercial property, there stays a high possibility of future conflicts.

• Tenure of agreement: The tenure of a rental agreement depends on both parties. The tenure of the tenancy agreement is not repaired, it can never ever be said that the tenancy of a domestic property does not exceed 11 months. However, when preparing a rental contract, it is extremely essential to specify its period and also the start and end dates of the arrangement.

• Purpose of lease: It is essential to point out the function for which an occupant is leasing the residential or commercial property and also it is very important to mention that no anti-social activities can be done on the residential or commercial property. If the function of the lease is not defined, the occupant will do as he pleases in the residential or commercial property and the landlord may deal with problems in the future.

• Rent and down payment: The monthly lease of the residential or commercial property and the security deposit are a part of the rental arrangement which should be plainly pointed out and it is also essential to discuss the particular date on which the lease will be paid monthly. If there is any condition of increase in lease after a specified period then it need to be pointed out.

• Maintenance expense: Nowadays, the trend of living in flats has actually increased but the owner has to pay monthly maintenance charges to keep the typical area of the flat. Maintenance expenses should be paid for living in a flat, so the occupancy agreement need to define who will pay the upkeep expenses in between the owner and the occupant.

• Lock-in duration: If there is a condition that the renter can not leave the home for a particular period or the proprietor does not ask the tenant to leave your home then this lock-in duration need to be specified in the agreement.

• Duties and responsibilities: The duties and commitments of both celebrations need to be clearly mentioned in a rental arrangement. Both celebrations will be bound to comply with the terms discussed in the contract. The responsibility of the occupant is to pay rent on time, look after the residential or commercial property and keep peace and order. On the other hand, the task of the property manager is to keep your house in a rentable condition and maintain the water and electrical power supply on time.

• Renewal, termination, and notification duration: A provision for an extension of the rent arrangement need to be consisted of in the contract. The arrangement needs to specify whether the renter can renew the contract at the end of the term.

The arrangement must include a choice that the tenant can terminate the rental contract before the end of the term and it can likewise mention that the property owner can ask the tenant to cancel the arrangement before the end of the term and abandon the premises if the property manager requires the residential or commercial property. In this case, the parties will notify each other with a maximum of 2 months' written notice. Both celebrations may equally select an extension, renewal or notification duration before the contract is prepared.

• Dispute resolution: One of the most vital parts of the contract is the method to deal with the issue. Disputes can develop in between landlords and renters at any time, so it is very important to define in the arrangement how disputes can be dealt with. The court, arbitration, and conciliation are the most common methods to deal with conflicts in between proprietors and occupants.