Disputes between a landlord and a tenant may arise due to several reasons. These may include issues related to delays in rent payment, increases in rent, property maintenance or the termination of tenancy. The Transfer of Property Act 1882 and the Rent Control Act in each state lay down the rules for landlords and tenants. The rent agreement is an important legal document mentioning the terms and conditions of the tenancy. The agreement is signed by both parties and should clearly specify their rights and responsibilities. Typically, both the landlord and the tenant add clauses to safeguard their interests. However, the rent agreement should have certain clauses that protect the interests of both parties, which will minimise the chances of disputes in future.
Rent agreement clauses to protect landlords
Payment terms
Landlords must ensure that the rent agreement specifies the rent amount to be paid by the tenant and the time by which it must be paid, including the grace period. The agreement should also specify who should pay for the utility and maintenance charges. Payment modes, such as cash, cheque, online, etc., can be included to avoid any confusion. They can also add a clause if there is a penalty for late or delayed payment of rent.
Repair responsibilities
The landlord can clarify who will be responsible for undertaking repairs and payment of expenses when the tenants stay in their property. One can also specify details of major repairs and minor repairs in the property.
Eviction terms
Landlords can protect their interests and prevent a possible dispute by letting their tenants know what is allowed on their property and the reasons that could lead to eviction. For example, non-payment of rent for two consecutive months or carrying out any illegal activities on the property may be genuine reasons for eviction. The notice period, which is the minimum time a tenant gives to the landlord before terminating the tenancy and vacating the property, should be mentioned in the agreement.
Defined property usage
Landlords are allowed to include a clause specifying the terms for the usage of their property by the tenants. They can mention whether any improvements or renovations of a permanent nature are not allowed on the property because the authorities may take action against the owner. This can be an important clause that will prevent disputes if the tenant decides to undertake any renovation work.
Rent agreement clauses to protect tenants
Financial obligations of the landlord
Tenants must ensure that the financial obligations of the landlord, covering payment of property taxes, home insurance, etc., are clearly defined in the rent agreement. Typically, the agreement should have an undertaking by the landlord that such charges have been cleared or that the landlord will be responsible for the payment of utility charges, maintenance, etc.
Security deposit
Before finalising the agreement, make sure to discuss the security deposit amount with the landlord and the scenarios when the landlord can withhold it. The rent agreement should contain details about the process and time for returning the deposit at the end of the lease term, including deductions for any major damages.
Rent increase
The rent agreement should clearly have a clause stating the renewal terms and the increase in the rent amount. This will help protect the tenants and prevent landlords from unduly increasing the rent.
Deduction of expenses from rent
Usually, tenants may undertake minor repairs in their houses. When there are significant costs, it may even lead to disputes between landlords and tenants. Thus, having a clause that specifies that such expenses borne by the tenant will be deducted from the rent can be beneficial.
Clauses that benefit both landlords and tenants
- Lease terms: The rent agreement should mention the start and end dates of the lease term.
- Termination conditions: The document should state the scenarios for terminating tenancy, mutually agreed upon by the landlord and tenant.
- Entry and inspection: Landlords and tenants can discuss and add a clause specifying the landlord’s right to enter the property for inspections, repairs or emergencies.
- Subleasing: Mentioning a clause clarifying if subletting is allowed on the property, which can help prevent any possible disputes.
- Dispute resolution: The rent agreement can include a clause defining the suitable resolution method in case of disputes (mediation, arbitration or legal action).
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A rent agreement should be comprehensive and cover various aspects of the tenancy. It will help both parties understand their rights and responsibilities, thus preventing potential conflicts of interest. One can also take the help of a legal professional for getting a well-drafted rental agreement.
FAQs
What are the main clauses of a lease agreement?
The rent payment terms, lease terms, security deposit and termination conditions are some of the important rent agreement clauses.
What should be included in the rent agreement?
Make sure to add clauses that clearly define the rent payment terms, repair responsibilities, rent increase and security deposit to avoid disputes.
Who keeps the original rent agreement?
Usually, the landlord keeps the original rent agreement document.
Who keeps the original rent agreement?
A rent agreement is a contract between the property’s landlord and the tenant, which defines the terms and conditions of the tenancy.
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Harini is a content management professional with over 12 years of experience. She has contributed articles for various domains, including real estate, finance, health and travel insurance and e-governance. She has in-depth experience in writing well-researched articles on property trends, infrastructure, taxation, real estate projects and related topics. A Bachelor of Science with Honours in Physics, Harini prefers reading motivational books and keeping abreast of the latest developments in the real estate sector.
