Rules of Tenancy Agreement: We all dream of having our own house but sometimes we have to live in a rented house due to some reason. Many people in the country go to other cities in search of jobs and they also live in rented houses. Let us tell you in the news how much the landlord can increase the rent every year…
Tenancy Agreement Rules: Transactions are very important while buying or renting a house. Therefore, it is important that you understand things well before taking any step. While doing this, the legal aspect should be fulfilled and other points should also be carefully examined so that your journey is enjoyable. Many people have to live in rented houses in Mumbai.
Renting a house in Mumbai is not only more expensive than other cities, but it also comes with many problems and disputes. Therefore, both the landlords as well as the tenants should keep some things in mind. It is important for both to keep those information legally, so that a situation of dispute does not arise.
What is a rent agreement
A rent agreement is a formal document signed by the landlord and the tenant with mutual consent. The format of the rent agreement includes the fixed rent, advance payment, terms and conditions set by the landlord, exact size and location of the property, usage and other details of both the parties.
Legal Tenancy Agreement
When it comes to renting or giving property, the tenancy agreement becomes a very important part. It includes all the terms and conditions related to the rent and the house or property to be rented. Both the tenant and the landlord are bound by law to follow the terms of the tenancy agreement. It is very important that the tenancy agreement is in writing. A copy of the documents submitted by the tenant is kept by the landlord.
A written tenancy agreement should include all the terms and conditions, big and small. The definition of rent should be clear. There should be no room for more than one meaning or misunderstanding. The tenancy agreement should include the tenant’s complete information and permanent address etc. If any legal dispute arises, this agreement is very beneficial for both parties.
Renewal is necessary (latest property news)
If the tenancy agreement has expired or is about to expire, renew it or give a month’s notice to vacate. This provision should be mentioned in the tenancy agreement. Sign the agreement as tenant only after including it. The landlord cannot ask the tenant to suddenly vacate the house without notice or turn off essential amenities like electricity, water etc. Every time while renewing the tenancy agreement, the tenant has to provide proof of both his workplace, address and permanent address. From that, it can be seen what their employment status is. Also, if there is any difference in it, then that can also be known.
Whether local police registration is done or not
After signing the tenancy agreement, it is necessary to register it at the local police station. Today all housing societies have made this term compulsory. The application letter to be filled for this registration contains information like permanent address of the tenant, contact number, phone number of related persons. Based on this information either the identity of the tenant is confirmed and more importantly, it becomes easy for the police to intervene in case of any dispute. A copy of the police registered tenancy agreement is useful for tenants to provide proof of present residence.
Miscellaneous charges
The local administration and housing societies levy various types of charges and taxes on any property. Clarify who will pay these charges and taxes during the period in which you are renting the house. Generally, this tax is paid by the landlord. The tenant pays only the rent. It is the tenant’s responsibility to pay the electricity bill of the house.
Security Amount
When buying a house on rent, you have to pay a deposit. The security deposit is returned to the tenant at the end of the tenancy agreement. Clearly mention the security deposit in the tenancy agreement. Generally, if the security deposit is returned by the landlord within seven days of the end of the tenancy agreement, no interest is charged. But if the delay is more than seven days, interest is charged per day.
To avoid any kind of dispute while renting or buying a house, check the following documents:
Title Documents – Check the title documents to ensure that the person who is renting the house to you is the real owner of the house. It is often seen that the house belongs to one person and belongs to another. Also, there are cases of renting a disputed house. Then in such a case the tenant may suffer loss or have to vacate the house before the period ends.
Share Certificate – You can also check the share certificate of the society in which the house is being rented. This can give information about who actually owns the house.
Electricity Bill – The electricity bill of the house is in the name of the house owner. Check the current electricity bill while renting a house. Make sure the bill does not show a large outstanding. If there is a large outstanding, talk to the landlord about paying it.
Built-up area verification certificate – Verify the built-up and carpet area of the house or shop being rented. For this, take the help of a capable architect. He will give a certificate of the area of the concerned house. This is more needed when a big house or shop is rented.
No-objection certificate – Some landlords do not rent houses to unmarried people or impose some conditions. If the landlord has any such terms and conditions, they should be mentioned in the tenancy agreement.
Rent increases by this much every year
Usually the rent of the house increases by 10 percent every year. If you find it okay, then you can agree to the agreement. The rental agreement gets renewed after every 11 months. If the agreement is for more than 11 months, then it must be registered. You also need to understand the process of security deposit and its refund in case of vacating the house.
The conditions for cancellation of rental agreement are also written in this document. The notice period is also mentioned in it. It would be better if you also get the mode of payment of rent (cash, cheque or NEFT/RTGS/IAPPS) written in the agreement, so that you can avoid any dispute later.
