As already informed in our various posts, unregistered Rent Agreements are not considered as a Primary proof by the court.
In today’s time most of the people await for good opportunities and if the opportunity is outside their native place then also people are ready to relocate. In bigger metro cities like Delhi, Mumbai, Bangalore, Chennai, Hyderabad etc where a number of good opportunities exist for everyone; a lot of people prefer them to earn their livelihood. It’s not easy for everyone to shift to these metro cities and purchase their own accommodation due to the high cost of property compared to some smaller cities. For this reason only, people prefer to take accommodation on rent without any financial burden.
But before to let out a property on rent, it’s prudent to have a registered agreement in place with all essential terms and conditions. Following are the important clauses which shall be included in a Leave and License Agreement.
Monthly Rent, Security deposit and License Period:-
The agreement should clearly define the amount of monthly rent that you has to be paid each month and due date by which it has to be paid.
Landlords usually ask for a security deposit which is roughly equal to one or two months’ of License Fee. It should be mentioned in the agreement and the condition when it will be refunded.
Proper care must be taken to ensure that the agreement covers other charges like electricity, water, PNG, maintenance, and so on based on monthly consumption.
License Period in Months
Typically, rent agreements are executed for a tenure of 11 months. However, you can enter into an agreement for a period as long as 60 months. Make sure the tenure is clearly mentioned.
Also, clarify about the lock-in period, during which neither the tenant nor the landlord can terminate the agreement, and the consequenecs if initiated by either of the two parties.
Termination of Agreement
A very important clause which should be included as how the agreement can be terminated by either of the two parties and what should be the notice period.
Use of Licensed Premises
A very important aspect which should be clearly mentioned is the Use of Licensed Premises. If it’s indented for residential use then it should be used for the sole purpose and if for commercial use then for sole purpose only without any use for illegal activities. It should be clearly mentioned that the internal structures should not be changed by the Licensee during the tenure of the Agreement.
Restrictions
There are many societies which don’t allow pets so this should be clearly mentioned in the Agreement. Some Landlords don’t prefer non-vegetarian tenants. Other issues to clarify include whether you can use the terrace, parking space, garden or any other amenities in the society.
