In times when almost every firm or individual is going out for rental agreements, people are unaware of the details of the rental agreement. They are unfamiliar with the validity of rental agreements they are acquiring. As it is wisely said, half knowledge is more dangerous than none; here we provide you with some unknown details about Rental Agreement Format.
What is the Rent Agreement?
Known as a lease agreement in the masses, it is a written document that declares a contract that has occurred between two parties. One of them is the land/property owner and the other is a tenant. The contract covers all the rules and regulations, both parties are bound to follow. It also consists of clauses that dictate the penalties or damage incurred by the party and another crucial set of data.
Proper Rent Agreement Format:
A properly drafted Rental Agreement Format consists of all the major particulars of the contract from which some of them are mentioned below:
- Brief description of the property, which includes size, type, and address
- Monthly rent
- Rate of rent escalation
- Security deposit
- Purpose of utilization: commercial or residential
- Terms for termination of the contract
- Special terms and conditions, and most importantly
- The validity of the agreement
The validity of the rent agreement:
If people approach a genuine firm like Rentagreement.in, experts will tell them that unregistered rent agreements are valid only for the 11-month duration. So, next time while people are looking out for Rental Agreement in Mangalore or other cities, make sure the maximum validity is mentioned as 11 months. While the majority of the landlords and tenants are unaware of the reason why is it so, we here will also explain why it is only for 11 months.
Why such a small duration?
As per the Registration Act, 1908 of the Indian Constitution, a lease agreement is ought to be registered, if its leasing period exceeds 12 months. In all the registered agreements, the applicant has to pay stamp duty and registration fees along with flat registration charges, which need to be paid through demand draft. Every state has variable stamp duty charges, which vary as per the duration of the agreement. In addition to that, there are security deposit charges too. To avoid additional charges, the landlord and tenants opt for unregistered rent agreements which have a validity of 11 months. If they go for registered lease agreements, they have to pay fees of the processional lawyers, intermediaries and entire paperwork.
Which rental agreement is better for you?
For people who are looking for getting Rental Agreement in Mangalore, the first step is to identify for how long they are staying in the rental property.
If they are staying lesser than 11 months, they can go for unregistered ones, else go for registered lease agreements. For parties who are more concerned about the extra payments, they can choose unregistered lease agreements. For a long term rental agreement, it will be economical to opt for a one-time payment than recurring payments.
How to not fall into traps and how to opt for a genuine firm?
By either providing false information or unbelievable prices for rent agreements, firms lure innocent people into scams and take their money. What people must be taken note of is the testimonial and reviews of the rent agreements of the firm. If there are few reviews, go for a sample format, if available, and compare it with the list of necessary clauses in the document.
People should opt for rent agreements from firms that have vast amounts of experience backing them. They provide well-drafted lease agreements in the proper format, with customizable solutions also available. With options available for doorstep delivery by firms like Rentagreement.in, people can happily get their customized lease agreements minus all the hassles. Good firms provide round the clock customer support to their customers, both before and after providing the lease agreements.