Once you have finalised on a good 2 BHK or 3 BHK apartment or villa to rent, there are some essential factors that you must keep in mind before signing the final rent agreement. Minute issues like repairs or payment of bills that crop up may lead to bigger problems like even a hike in the rental charges, unless they are clearly defined in the rent agreement. As a tenant, there are some extremely important factors that you need to be aware of, to ensure a satisfactory stay for the duration that you are in your newly rented apartment or villa.
What is a rent agreement?
A legal document that states the norms/rules agreed upon by the tenant and the owner of the house is called a rental/lease agreement. A rent agreement is usually prepared by the real estate agent hired by the landlord and the tenant. The document is validated only when the tenant and the owner signs the agreement in the presence of two non-beneficiaries who stand as witnesses for the deal. The rent agreement once signed will act as a document of solid proof between the 2 parties and will not be subject to any changes. Some of the factors to pay key attention to while signing the rent agreement are as follows:
Must know factors before you seal the deal!
Registration of rent agreement
A rent agreement must be a written document, printed on the right stamp paper. This is called a registered rent agreement and it is mandatory if the term of the agreement is for more than a year, or if the rental agreement is renewed yearly. The rent agreement becomes extremely crucial if a dispute arises between the tenant and the landlord, as the court does not permit a non-registered rent agreement. However, the registration of the agreement is not required if it is an 11-month rent agreement.
Read the rent agreement carefully
One of the most obvious factors while signing the agreement is to carefully go through the entire document word-by-word. There are chances of the landlord not incorporating all the promises made verbally in the rent agreement. Also, it could be a tad bit difficult to understand the legal terms used in the documents and in such cases it is vital to consult a lawyer to ensure that you’re not putting your hard earned money to waste. Ensure that you aren’t guessing the meaning of any clause and that you are sure about what you’re getting into before signing the dotted line.
Check the landlord’s details
When you’re about to sign the deal to rent a cozy 2 BHK apartment or a luxurious 3BHK apartment or villa, one thing you should be certain of must be to verify the details of the landlord. You must ensure that you don’t fall prey to the fraudulent practices involved in real estate deals, especially if you are new in a city. Checking the details of the landlord does not just involve studying his/her background. You must do a thorough check of the papers you are about to sign to rent an apartment or house. There could be way too many loopholes hidden within the agreement itself! There are instances where the actual house owner hands over the property for maintenance to a relative or a caretaker and they decide to lease the property to a third party, without the knowledge of the actual owner. So, it is extremely important to ensure that the landlord signs on the agreement along with you, under the title ‘landlord’.
Landlords or owners of the property often take a security deposit to ensure complete security of their 2 BHK/3 BHK apartment or villa. This becomes an essential factor as, in some cases the tenant causes damage to the property or the tenant refuses to pay the rent and becomes untraceable. It is mandatory to mention whether the security deposit is refundable or non-refundable in the agreement. It is also advisable to include the time frame within which the security deposit must be refunded.
Furnished vs. unfurnished apartment’s agreements
The rent agreement for a furnished 2 BHK or 3 BHK apartment may slightly vary from that of an unfurnished apartment. A furnished apartment’s lease agreement will specify the rights and obligations of each party involved in renting the property and it’s different from a standard lease because it covers the entire range of furniture. A furnished apartment’s lease also includes several customary provisions that are more landlord-friendly because there’s a lot more at stake for the owner of a furnished apartment when compared to a person who owns an unfurnished apartment.
Most of the top builders who provide flats for rent or villas on lease are facilitated with power backup, water tank and a range of other essential utility services. The tenants shouldn’t be just verbally briefed about these overhead charges, rather all this must be clearly stated in the rent agreement provided to the tenant. It is the duty of the tenants to perform a check of all the mentioned overhead charges in the rent agreement before signing the document.
Damage and repair costs
The cost for any damage or repairs in the apartment or villa that you are going to rent must be clearly specified in the rent agreement. Not ensuring the same, will leave you with an unreasonable bill amount for the damages done, while you vacate the rented apartment or house. Ensure these costs are mentioned prior to signing the rent agreement to avoid all kinds of discrepancies with the landlord and also to push for negotiations.
Landlords of the rented apartment or villa often insist on having an agreement validity stated in the rent agreement so that the tenant stays at least for a period of 6 months. The rent agreement must mention the lock-in period, if any, and the term for which the property or 2 BHK or 3 BHK apartment is given on rent.
The landlord must clearly lay down the grounds for eviction in the rent agreement of the property or house you are going to rent. This clause will exclude all liabilities the owner will have to bear in case the tenant indulges in any illegal activity. In addition, the tenant should ensure that the rental agreement, as well as the property, is in compliance with all relevant laws and government regulations.
Before you put your legs up in the air to relax after finding the perfect apartment or house to rent, always ensure that the rent agreement has all the necessary specifications that will keep you away from disputes that can arise in the future. Keeping yourself updated with the changing real estate trends, tenant’s rights and obligations that will help you settle for the best choice while renting an apartment or villa. This always becomes easy if you have a reliable real estate broker and if you’re renting an apartment or villa with one of the most trusted builders –Kalyan Developers. Always remember to keep these essential factors in mind, before you seal the deal!