House rent agreement: A guide for a fool-proof renting experience

financialexpress.com:

Renting a residential property can be a good source of monthly income for homeowners. However, before letting out a property, homeowners are required to have proper rent agreements in place to avoid any hassles in future.

Further, a rent agreement is also good for tenants as it protects them from any arbitrary decision of the landlord; such as asking the tenant to immediately vacate the property or increasing the rent amount midway during the agreement period. This article answers important questions related to rent agreements as a brief guide for a fool-proof renting experience.

A rent agreement is legally referred to as ‘leave and license agreement’. It is a legally binding document which outlines and records the terms and conditions agreed upon between a licensor and licensee for grant of such license.

A rent agreement is basically a “license in relation to an immovable property is a permissive right, without transfer of possession (in law) of temporary nature granted by an owner/ landlord (legally referred to as ‘licensor’), to the person seeking such permission, to use and occupy such immovable property for residential/ commercial/ industrial purposes,” says Apoorva Bhadang, Partner at Vesta legal.

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According to Abhinay Sharma, Managing Partner, ASL Partners, the following are the key details a rent agreement must include:

Adding to the above, Rohan Rai, Associate Partner at RR Legal Partners LLP, says the rent agreement clause can have details like:

“Another important clause that hasn’t found its place in rent agreements till now is sublet. Usually abroad, such clauses are used, for instance, if the tenant wants to temporarily move out for 2 months,