Benefits, Terms and Conditions of Rent Agreement

 Almost every person in India wants to build a private house. The house is also such in which one can live himself and can also give a small part on rent. For the middle class of India, the house is also his pension plan. When it comes to rent deed, most of the people approach a notary nearby and the prescribed format is signed by both the parties but it is not correct because everyone's house is different and everyone's terms are also different.  The terms and conditions for letting out the house are prescribed, which should be mentioned in the rent agreement so that there is no dispute.

House rental rules

The rent deed should clearly mention which part of the house is being let out and what will be the monthly rent. There is no need to fear the Income Tax Department. Annual income up to ₹ 500000 is tax free. In case of more than this, you can contact your Chartered Accountant.

Most of the rent deed is prepared for 11 months but even then the rent agreement should clearly mention the annual increase in rent if the tenant's contract is extended. Usually it is 10% but the landlord and tenant can agree on less or more.

If you are making a rent agreement for more than 11 months, then it is necessary to get it done.

 

The contract between the landlord and the tenant should clearly state how much the security deposit is being charged and the terms and conditions of return in case of vacating the house.

What will be the terms and conditions in case the house is vacated before the stipulated contract between the tenant and the landlord. The notice period should be clearly mentioned.

The process of payment and receipt of rent should always be done through the bank so that there is no dispute.

The rent deed should clearly mention about electricity, water, house tax, society fee, gym, swimming pool, parking, club fees etc.

 

All the terms and conditions regarding the maintenance and paint of the house should be clear.

In the event of a breakdown in the house, how it will be resolved should be clearly written.

The farenama should also clearly mention about pets, late arrival rules, vegetarian or non-vegetarian food etc.