Table Of Content
- What Is Rental Agreement In India?
- How Many Types Of Rental Agreements Are There?
- Commonly include Terms in Rent Agreement
- What Is The Difference Between Rent Agreement And Lease Agreement
- Frequently Asked Question – FAQs
Now if you think clearly then through a Rental Agreement a lot of things become sorted for the people who are living in Rented property such they get an address proof to show, they can show their Rent Agreement to acquire a passport or a driver license. However, there are many types of rent agreements are there that not many of us aware of.
What Is Rental Agreement In India?
Basically, a Rental Agreement is a legal contract that must be signed by both parties in order for the owner to rent a property to the renter for a specific period of time. By providing the tenant with advance written notice, the landlord is permitted to raise the rent or alter the conditions of the lease. Unlike a lease in Rent, the person who gives his property for rent is the landlord and the person who is going to live in the property for rent is the tenant.
Also Read, How to make rental agreement online?
How Many Types Of Rent Agreement Are There?
There are basically different types of rent agreement available in India but there are mainly four types of rental agreements which we have outlined below:
Commercial Rental Agreements
As the name says, these agreements are used for commercial purposes only. A commercial rental agreement comes under the types of Lease agreement, it is a legal document you use to rent a commercial building to or from another person or business. The property is used for commercial purposes rather than for personal use. It can be a house, an entire building, a small shop, etc.
- The Agreement should be printed on a non-judicial stamp paper which can easily be accessed in every State.The “tenure” of the Rent and the state in which it is implemented would determine the cost of the stamp paper.
- The signatures of both the Landlord and Tenant should be there as it is compulsory, if any of the parties signatures goes missing then the document will be considered as null and void. The hardcopy of the agreement can be kept with either party to avoid any kind of mishap in future.
- There is this fact that if the agreement is of 12 months then it needs to be registered in the court, the party who gets the agreement prepared he/she needs to pay a hefty amount as charges it is also a reason that mostly the agreements are prepared of 11 months.
Residential Rental Agreements
If a person or a family is looking for a rented accommodation such as a house, a flat or a property then they need to prepare a Residential Rental Agreement. It is a document that explains out a tenancy’s terms and conditions, including the landlord’s and tenant’s responsibilities. This agreement is for the person who wants to temporarily occupy the property for a specified time. For example, A family looking for an apartment to live in. Although, there are many do’s and don’ts while drafting a rental agreement that you should be aware of.
Single Room Rental Agreements
One of the type of rent agreement is Single Room Rental Agreement. There are people who enjoy their personal space so they mostly go for a single room. This agreement is done between tenants. Normally the college students and people who work in a place where they don’t have an accommodation of their own choose the option of living in a single room.
Shared Rental Agreements
This agreement fits best for those who want their cost of living less. Two or more people who agree on sharing a place together come into this contract where all the terms and conditions are clear and noted to both the parties for future reference. For example, If a tenant rents a three-bedroom apartment but only has two occupants, rent out the third room and can balance everything easily.
So this was the detailed list of types of rental agreement, you can choose any of them to create as per your required and type of rent.
What are the Commonly include Terms in Rent Agreement?
There are various terms that one needs to include in the rent agreement. Here we have outlined some of the major terms in rent agreement to include:
- Duration of tenancy: Duration of which the rent agreement will be in effect.
- Rent Amount: The agreed rent amount the tenant will pay to landlord for rented property.
- Security Amount (Deposits): Security amount, its purpose and how it will be adjusted or returned at the end of the tenancy.
- Terms & conditions: Agreed terms and conditions to use the property by tenant.
- Insurance: This is majorly uses in the commercial rent agreement to insure the property.
- Maintenance: Name of the party responsible for the maintenance and repair of the property.
What Is The Difference Between Rent Agreement And Lease Agreement
Many people have this mindset that rent and lease contract are the same thing but there is huge difference between rent and lease agreement just to make things more clear refer below the given table:
|Basis Of Difference||Rent Agreement||Lease Agreement|
|Meaning||A rental agreement is a legal document signed between two people(owner & tenant) to rent a property from one party to another for a specific period.||A lease agreement is a legally binding agreement between two parties (lessor and lessee) that allows the lessee to occupy a property for a set period of time.|
|Stamp Duty||In the rent agreement, the stamp duty gets calculated and paid as per the state government. The commonly used stamp paper amount is 100 rupee.||according to the lease amount the stamp duty gets calculated and paid.|
|Term||For 11 months approx.||A lease is suitable for the long term.|
|Modification||Changes can be made.||A lease agreement is of rigid nature, before the completion of the lease period no changes can be done to the document.|
|Maintenance||The landlord has the responsibility of maintenance.||The responsibility lies on the shoulder of the lessee.|
|Payment||Month-to-month payments can be done by the tenant||The lessee has to make a one-time payment.|
|Parties involved||Landlord and tenant||Lessor and lessee|
You can go through our blog on differnce between rent and lease agreement for a better clearity on the topic.
When you start thinking of living on your own on Rent somewhere then prioritize a few minute details which one will think is not important but it is. The thing you need to keep in mind is from where you will get your rental agreement prepared as you can get overcharged and your documents can also get delayed. eDrafter is a one stop solution to your problems, get your any type of Rental Agreement prepared at very pocket friendly prices and delivery is done on time!
Also Read, About Basic Rental Agreement Form
Frequently Asked Question – FAQs
Before getting your rental agreement registered:
1. Firstly, you need to outline the clauses and every important detail.
2. Then get it printed out on the non-judicial Stamp paper.
3. After that the landlord and the tenant both have to sign the Agreement.
4. Lastly the parties have to go to a nearby sub-registrar office to get their Rental.
5. Agreement registered after paying the appropriate Stamp Duty.
The original copy of the Rent Agreement is always kept with the Landlord and the tenant gets a photocopy of the Agreement for the future reference.
For making the rent Agreement online you can visit our rental agreement page to get your work done without any hindrance.
Yes, it is valid for the time period mentioned in the Agreement.