What Must you Know Before You Sign a Rent Agreement
If you have chosen a home to get on rent, then you must sign an agreement to be living in. There are several things that you should consider before signing on a rent agreement, doesn't matter whether it is residential or commercial.
Make sure you read the agreement carefully before signing it. Sometimes, people don't take it seriously and directly sign an agreement that may lead to future conflict between the tenants and owner.
Understanding a Rent Agreement
A lease or rental agreement is a legal paper containing several rental rules that tenants and property owners must follow. An agent of real estate usually prepares a rent agreement for both residential and commercial.
The value of this stamped document is only 1% of the monthly or annual deposit. In addition, the tenant and the owner can hire this agent to deal with the complete legal process. Both the renter and the landlord have to sign this agreement in order to verify it. However, keep in mind there is a need for two persons as a witness, but make sure they are non-beneficiaries of the space.
What are the Things Included in the Rental Agreement?
The rent agreement comes with terms and conditions for the renter as well as the landlord. In addition, this particular agreement contains the name of the tenant and the owner of the property and the address of the place which is given on rent.
It is advisable that both the landlord and renter keep a copy of the agreement. The reason is that if any issue occurs in the future, we can present this agreement and show the conditions. There are many conditions are written in this agreement, such as:
The specific time period in which the owner can't ask renters to leave the property
The tenants will pay electricity and water bills
A monthly amount of rent
Rent escalation clause
Facilities for the renter
Security and maintenance
Lease conditions such as security deposit, late rental charges, increase in rent, and many more
As a tenant, you should pay rent to the owner of the property in order to eliminate further issues. Make sure you will check all the bills, including water and electricity, before paying their money. Suppose the owner is not loyal or asks you for more money for bills than actual, so you should check it carefully as you have the right to see these documents.
Keep in mind that a rent agreement is typically valid for 11 months, and after this period, you have to renew it. However, if you don't make a registration for a new agreement after it expires, then this expired agreement will not work.
Rent Escalation Clause
A renter must confirm whether the property owner has added an escalation clause in the agreement. In addition, it can be utilized to enhance the rent after a specific period; usually, it is six months.
A renter must pay attention to the date mentioned in the agreement that refers to a change in the rent. If the owner fixes the time period of 3 or fewer months, then you shouldn't sign this agreement as it is not appropriate. Make sure the minimum time limit is six months to increase the rent of the property.
Also Read: Top Mistakes To Avoid in a Rental Agreement
As a renter, you should ensure that the landlord mentions in the agreement that they will not sell the property for a certain period. However, if the owner determines to sell their house during the rental agreement term, you must know how many months you have.
It is a good idea at this time; you should look for a new space to get on rent. Further, before signing the agreement, you should visit the space that you want to take on rent. If you take a house for rent, make sure it is in the right condition and check all their connections that they work appropriately.