Basically, a rent agreement is an agreement or a contract signed between a Landlord (owner of the property) and a Tenant (person wanting to stay in the owner’s premises) through which the landlord gives the tenant the right to occupy the landlord’s residential property.There can be many types of rental agreements and few them are listed below:
Property related Rental Agreements:
- Flat Rental Agreement
- House Rental
- Commercial Office Rental Agreement
- Commercial Shop Rental Agreement
- Room Agreement
- Office Sharing Agreemen
- Car Parking Agreement
- Commercial Lease
- Residential Lease
- Leave & License Agreement
Flat Rental Agreement
Flat rental agreement are basically rentals deeds for a single flat/unit in the high-end complexes/ apartments and is not used in the case of independent houses. Such rental agreements need to be drafted with care and caution, particularly pertaining to few clauses of the right to common amenities like gymnasium, swimming pool, badminton court, and various other common areas. In today’s time in metros like New Delhi, Mumbai, Bangalore, have ambits of luxurious apartments for residency purposes. Few other main clauses are as under:
- Security Deposit amount / Monthly rent
- Maintenance charges
- Common amenities
- Tenant’s duties and responsibilities
- Consequences of non-payment of rent
- Percentage increase in annual rent
- Notice before termination
Prerequisites for Legal Validity
- Names, signatures, and addresses must be mentioned without errors of both the Landlord and the Tenant.
- The address of the apartment that is being rented out too must be mentioned clearly, without errors.
- The signatures of the tenant, landlord and two witnesses must be placed clearly on the last page along with their full names.
- To make the document legally valid, it must be printed on stamp paper of recommended value.
House Rent Agreement
A rental agreement, it is very necessary to maintain an amicable relationship between the owner of the house and to the person to whom the owner is renting out his house i.e; between the Landlord and the Tenant. Every rental transaction should begin with the drafting of a rental agreement and most importantly when an independent house is rented. Nowadays, people are opting for leave and license agreement rather than going into lease deeds or rental agreements because it is much more hassle-free and moreover the eviction in such cases is easy.
Commercial Office Rental Agreement
After picking up the place one wants to put up an office in, the next step is to prepare a contract/lease for occupying the property. Any individual, business owner or company wishing to take up a property to use as an office can make use of a commercial office lease. So if you are the owner of a property apt for office use or if you are an individual who wants to lease a property for office use, commercial office lease is what you need.
Office space leases can also be signed between companies when one company requests the use of a part of the other company’s office space for the former’s use.
Proprietors can create agreements in their own name, however, companies or partnership firms must always use their registered business name in the contract.
Companies who want to lease an office space too can make use of this commercial lease. In such cases, the name of the company will be used in place of Tenant.
It is pertinent to mention that Commercial leases are regulated by the “Rent Control Act”, so attention has to go into the contract as well as in whatever is written is legally binding.
- Lease term and options for renewal
- Monthly rent/ lump sum for fixed period
- Security Deposit and maintenance charges
- Permission to alter the structure of the building or add structures eg cabins,display units etc.
- Right to sublet
- Conditions for Lease termination
- Consequences of breach of contract
To make it legally valid
- Prepare and verify the commercial rental agreement.
- Print the document on stamp paper of recommended value. Each state has its own guidance on stamp duty charges. Keep in mind that leases for a period of over a year must be compulsorily registered at the Sub-Registrar’s office.
- The tenant and landlord must place their initials on all pages and signature on the last page designated for signature.
- The witnesses must place their signatures at designated places.
Commercial Shop Agreement
Whenever it is required to open a store of some kind in a shopping complex, building or any other spot of choice, it is required to prepare a store lease. The lease will be signed between the owner of the business and the landlord.
Such leases are governed by the Rent Control Act, Shops and Establishments Act and are binding. Hence, proceeding without a contract is very risky and is advisable to have a contract.
Companies and business too can be the lessee in a store lease. Any person wishing to open a store in a place available for rent can enter into a store lease.
Below are few main clauses listed which are necessary for the agreement:
- Basic rent
- Security Deposit
- Maintenance charges
- Addition/ alteration to structures
- Working hours in the property
- Consequences of breach of contract
- Terms and conditions of renewal
Below are few steps which are essential to be followed for Legal Sanctity:
- Preparing the contract.
- Print the document on stamp paper of recommended value. The stamp duty may vary from state to state.
- Names and Signatures of the landlord, tenant, and witnesses in the required places.
- Registration is mandatory for any rental agreement for a duration of more than 11 months.
Store leases are different from rental deeds in both the format and the clauses included in it. Store leases often allow the Tenant to build structures or incorporate changes to the existing structure as it is essential for their business.
In today’s world mostly bachelors/ spinsters prefer to live independently and for career preferences they even have to move from one place to another in to a different town and it is totally a common part of adult life. Most of them, while independent, may not be able to afford to have to rent a whole home for their own. That’s where the provision to rent only a room or portions of a house already occupied by someone else seems like a blessing. There are many families who are renting out their houses for such people. Also, it is beneficial for the people renting out the flats as it is a great source of additional income. It is advisable to have a rent agreement in place. This agreement is pretty much like the normal rental agreement except for few differences
Office Sharing Agreement
In this modern world, finding and renting a space can be a difficult task. This contract is an arrangement between a group of like persons who have come together to share an office space with main motive to save costs and make the best utilization of available capacity. There should be an agreement to this so as to avoid any future discrepancies. The agreement should not only lay out rules regarding usage of office space and term but also on usage of utilities and equipment within the office premises.
Car Parking Agreement
Car is a necessity and with increasing requirement of cars, parking space is also equally required and with this unceremoniously increased pollution and traffic, finding a permanent parking space for car owners and aggregators is tasking.
Landlords and house owners are letting out parking space to tenants in exchange for some money big Professional companies are taking/renting lands to provide parking space to the tenants.
Basically, it can be an agreement between the car owners and the space owners or probably the companies whose renting lands from landowners for the sole purpose of car parking.
Few main clauses to be inculcated within the contract:
- The period for which the License has been acquired.
- Fees paid for the License.
- Security Deposit
- Rights and responsibilities of both the parties
- Termination policies
Commercial leases are generally most intense leases and is signed between businesses and the owner of a property which the business is interested in leasing. These Commercial Lease Agreements generally gives an outline of the terms and conditions under which the owner agrees to let the businesses occupy properties to carry out activities which are in connection with the functioning of the businesses. A long term commercial lease is one which is signed for a year or more. Commercial Leases are generally used for office purposes only. Commercial Leases to adhere with needs to be backed with proper Legal sanctity and for that proper Lease Deed on an appropriate stamp paper required.
Residential leases are more or less same as conventional rent agreements and is signed between the owner of the property/ Landlord and a potential person who wants to acquire the property to live in/ tenant who wishes to occupy the property for a period of more than eleven (11) months. Generally, residential leases are signed for long periods. The format followed too is pretty much the same. Some of the important clauses apart from the rent paid. Security deposit, maintenance charges, duration of the agreement in a long term residential lease also includes-
- Consequences of breaching the contract
- Code of conduct expected from owner and tenant
- Method to be followed in case a dispute arises
- Conditions of contract renewal
Residential leases is required to be drafted with a lot of care so that there is no future legal hassle between the owner and the tenant.
Leave And License Agreement
These days after seeing so much of discrepancies occurring between the Tenant and the Landlord. The property owner prefers to have a leave and license agreement. A Leave and License agreement is a document that bestows the Licensee with the permission to occupy the Licensor’s property. Such an agreement makes eviction easier and generally provides the landlord with greater power. It is also different from Lease Agreement as it is nontransferable and it does not create any interest in the property, whereas Lease Agreement does. There are many more differences to this which makes Leave and License Agreement an ease to deal with.