What is a Rental Agreement?
A rental agreement is an agreement or a contract between an owner and the one who receives a temporary possession over anything rented by the owner. The rental agreement could be regarding anything. It could be real estate, vehicle, personal possessions such as musical instruments, clothes or things like skates or shoes, books, CD, DVD, or digging machines tools or appliances.
A rental agreement is a month to month agreement. It is a tenancy of a short period usually of 11 months. For these monthly rentals are charged by the landlord and the tenant pays it according to said terms of the agreement.
Advantages of Rental Agreement
Securing Unpredicted expenses: A rental agreement is an agreement that benefits both the landlord as well as the tenant by securing the unpredicted expenses.
Good Relations: Through rental agreement, there develops a good relation between the landlord and the tenant as the rights and obligations are streamlined and precisely defined.
Provides legal protection: There is always a requirement of a legal document if the value of asset involved is high. Therefore it serves as a legal protection in the form of rental agreement.
- A well efficient lawyer from our team shall contact you, and explain you the total process, and will understand the need of Rental Agreement by you.
- Once the objectives of the same are clear, the lawyer shall draft a sample Rental Agreement accordingly.
- The draft Rental Agreement shall be sent to you, for your review.
- The whole process takes around 3-4 working days.
Why is a rental agreement required?
A rental agreement is done to protect the rights of the owner and recipient so that both parties could get the aimed profits or needs.In a real estate rental agreement, it is between the property owner and the one willing to stay and pay rent (an amount paid to the owner's agreed upon the contract in certain frequency and intervals of the time period) temporarily wishes to possess.Here often the receiver is called tenant while the property owner of the landlord.
How is rental agreement made?
The rental agreement will have certain terms and conditions that are agreed by both parties.Such as for the facilities provided, if the bills are included within the rent or not or it they are to be paid separately by the tenant.Another aspect is, the amount of property given, it could be anywhere from a small space to room to a part of the apartment, whole apartment, floor or an entire building.While it’s rented, the agreement will have a time period specified after which the rental agreement will be renewed and started again.
A rental agreement will usually also include security deposits that the tenant is required to give as security to the landlord or landlady.This security deposit will be given back to tenant once the term of an agreement is complete. Sometimes some amount of deposit is retained by the landlord to cover the damages done by the tenant during their period of stay however this does not count in subtle or obvious wear and tear of the property.
What Are The Terms and Conditions of Rental Agreement?
The term of rental agreement can be anywhere from few hours to months to years in a contract.Like a place to celebrate an occasion like an open ground or banquet hall.It could also be a hotel room and while renting these spaces people do sign a rental agreement before beginning to use these spaces.Then terms for bigger organizations or business and homes too are rented for a longer time and in terms of years in this case.
Rights of parties involved in Rental Agreement
For the contract to be agreeable by both parties, there are negotiations and rights, more rights to the property owner.Rights to the tenant for example are for complete privacy in rented area. The tenant has right to stay and can’t be removed unless any clause is broken or rent is unpaid. In some countries, the property owner has to put the security deposit and put it into a bank account and give it’s respective interest on the amount to the tenant.
Rights of the property owner or landlord here are that he can include the terms and conditions to be followed by the tenant regarding partying in the area, loud music or use of smoke and fire in the provided area. He also may or may not allow pets. Same goes for renting out properties for businesses and office area or shops or marts, even storage of goods.
Rental agreement in India
In India, all above rules and regulations are applicable, except for the interest over their security deposits. However the profits obtained from renting out goods/properties are taxable in India. However, it is taxable only if it’s reaching the taxable income amount which tends to change every year, this is so, because it is considered an income.The rule of taxing also change with privileges that change with age and senior citizens who are 60 and above for example has relaxation for paying taxes and super senior citizens who are over the age of 80 has more relaxation.