Ever wondered why rental agreements are made for 11 months? And why
it is essential to have a rent agreement? Well, it is important to have a
document that safeguards the interest of both the parties. A rent
agreement, thus, is the best way to take a cautious approach.
First let’s understand what a rent agreement is. “A rental agreement is a legal contract that binds the owner of the property and tenant, which safeguards the interest of both the parties. The landlord must either be the owner of the property or a person having power of attorney from the owner,” says an expert on Open House. Explaining the importance of this agreement, he adds, “It is important as it protects the rights of a landlord as well as the tenant. As per a clause a tenant cannot sublease the property. Also, it prevents the unnecessary rent hikes and forcible eviction without prior notice of minimum one month.”
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 on lease for one year or more than a year is mandatory,” informs Sony Antony, managing partner of Maxxco.
So, what is the standard duration for this? Well, as per Magicbricks legal expert, the standard rent agreement is made only for eleven months. However, answering a query of a landlord whose tenant requires a 36 month rent agreement due to the HRA policy in his company, Augustine Joseph, another expert on the forum suggests, “ one can definitely execute the rental agreement for 36 month with some additional clauses, which include the following:
Thus, in order to avoid any vexatious issues such as refusal to vacate the house when asked or disobeying the signed rules and regulation, rent agreement is a very crucial document. All you need to do 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.
So, get your property registered and enjoy the monthly rental income out of it!
Courtesy: magicbricks.com
First let’s understand what a rent agreement is. “A rental agreement is a legal contract that binds the owner of the property and tenant, which safeguards the interest of both the parties. The landlord must either be the owner of the property or a person having power of attorney from the owner,” says an expert on Open House. Explaining the importance of this agreement, he adds, “It is important as it protects the rights of a landlord as well as the tenant. As per a clause a tenant cannot sublease the property. Also, it prevents the unnecessary rent hikes and forcible eviction without prior notice of minimum one month.”
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 on lease for one year or more than a year is mandatory,” informs Sony Antony, managing partner of Maxxco.
So, what is the standard duration for this? Well, as per Magicbricks legal expert, the standard rent agreement is made only for eleven months. However, answering a query of a landlord whose tenant requires a 36 month rent agreement due to the HRA policy in his company, Augustine Joseph, another expert on the forum suggests, “ one can definitely execute the rental agreement for 36 month with some additional clauses, which 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.”
Thus, in order to avoid any vexatious issues such as refusal to vacate the house when asked or disobeying the signed rules and regulation, rent agreement is a very crucial document. All you need to do 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.
So, get your property registered and enjoy the monthly rental income out of it!
Courtesy: magicbricks.com
0 comments:
Post a Comment