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Drafting Lease and Rental Agreement Online

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What Is a Rent Agreement?

Rental agreement is a legal document that outlines the terms and conditions of an agreement between a landlord and a tenant. It specifies the amount of rent to be paid, the duration of the lease, the rights and responsibilities of both the landlord and the tenant, and any other relevant details related to the rental property. Property-related agreements, including Rent Agreements, must be secured through a legally enforceable contract in an acceptable format in today's fast-paced world where mutual trust is eroding.

Whether you're a renter looking to rent a property or a landlord with a property, it's crucial to utilise a legal rent agreement format that includes all the necessary provisions and can be used as a reference by both parties. The rent agreement should be error-free to safeguard the interests of both parties and to act as a cooperative piece of evidence in the event of a disagreement.

Types of Rent Agreement

  • Residential Rent Agreement
    The relationship and usage of the property are governed by this agreement between the landlord and the tenant. The parties would always discuss their rent arrangements for residential properties.
  • Commercial Rent Agreement
    Often, commercial rent agreements cover spaces that are occupied by a sizable organisation. There are, however, instances where smaller properties are used by businesses. For this kind of rental arrangement, a landlord-tenant relationship would also exist, but the landlord would typically be a business.

Benefits of a Rent Agreement for Owner and Tenants

  • Written
    The parties' formal and legal connection would be established by rent agreements. These agreements would always be in writing. As a result, either party would be able to refer to it in the future.
  • Legal Obligation
    The parties can preserve compliance by engaging into an agreement. Due to the written nature of the agreement, both the landlord and the tenant would be subject to its legal requirements.
  • Interaction Between the Parties
    By signing a leasing agreement, the parties establish a connection. The parties' interaction will only be of a commercial character, and they each have clear obligations to fulfil.
  • Liquidity
    The landlord receives a consistent source of liquid funds in the form of monthly rent. The landlord in this scenario would gain. Instead of selling the property all at once, the landlord gets a monthly payment. Also, the tenant would not be required to pay a sizable sum of money in monthly rent.

What Are the Contents of a Rent Agreement?

The names of the parties are the first item to take into account in a rental agreement. This would contain both the landlord's and the tenant's names and addresses. Moreover, contact-related information must be provided.

  • Occupancy
    The rent agreement must specify the region of occupation of the property. The rental agreement needs to be divided up into specific sections. For instance, the rent agreement should specify which areas of the property are accessible and which are not.
  • Period
    The rental agreement must expressly mention how long rent will be due. Concurrently, a Rent Agreement must also include information on the parties' agreement to an extension.
  • Premises
    The tenant must be given complete information on the premises according to this clause. The exact address of the property must be mentioned. The size of the property would need to be considered in this. Also, it's important to identify both accessible and limited areas.
  • Rental Fee and Security Deposit
    The next clause must provide details on the security deposit. The security deposit is typically a lump sum that covers the property for a specific duration of time. Typically, this time frame would last for a year or ten months. The rental fee must be provided together with this provision. The interest that will be charged must be specified if there is a delay in rent payment. There should be a condition stating that if the rent is late, interest would be levied beyond this date.
  • Tenant Obligations
    All obligations and responsibilities that the renter must fulfil are outlined in this section.
  • Rental Obligations
    All of the obligations and duties that the landlord must fulfil are outlined in this section.
  • Clause Concerning Subleasing
    A condition prohibiting subletting the property to other people or renters must be included. Penalties for violating this clause shall include eviction of the offending tenant from the premises.
  • Services and Repairs
    This provision would cover upkeep and repairs done by the landlord. Which maintenance and repairs would be covered by the contract? This must include annual maintenance or repairs.
  • Versus Contract
    This clause would apply to circumstances resulting in a Rent Agreement breach. Here, it's essential to outline the precise therapies to consider.
  • Rules of Law and Applicable Courts
    Typically, a clause relating to the jurisdiction in which the courts have the power to hear disputes would be present.

Documents Required for Rent Agreement

  • Aadhaar, receipt, or any form of ID
  • Non-Indian residents must submit their original passport
  • Power of Attorney required if ID is for someone else
  • The landlord must provide original proof of ownership
  • Two passport size photos needed
  • Rental agreement should be printed on recommended stamp paper value.

How Do You Register a House Rent Agreement?

  • Step 1: On a registered rent agreement, both the tenant and the landlord must sign where specified
  • Step 2: Two witnesses' signatures who have no connection to either the tenants or the landlords are also necessary
  • Step 3: After that, the sub-office registrar's is where the landlord and the tenant must meet
  • Step 4: Both tenants and landlords must present two witnesses, their passport-sized pictures, and ID cards for validation
  • Step 5: The rent agreement cannot be registered by a third party or an agent
  • Step 6: Once the stamp duty is paid, the registration deed is finished.

Rent Agreement Format

This rent agreement is made on [date] by [name of landlord], hereinafter called the Lessor/Owner and [name of tenant], called Lessee/Tenant.

The Lessor/Owner agrees to let out the property at [address of rented property] to the Lessee/Tenant for a monthly rent of Rs. [amount in numbers]/- (in words) per month.

The following terms and conditions are agreed upon by both parties:

The monthly rent of ₹[amount in numbers]/- (in words) does not include electricity and water charges.

The Lessee/Tenant shall pay one month's rent in advance to the Lessor/Owner, which will be adjusted in the monthly rent.

The Lessee/Tenant shall pay water and electricity charges on the basis of consumption to the Lessor/Owner.

The Lessee/Tenant shall not sublet the property without the consent of the Lessor/Owner.

The Lessee/Tenant shall follow all the rules and regulations set by local authorities and will not engage in illegal activities on the leased property.

This rent agreement is valid for 11 months starting from [start date] and can be extended further with mutual consent.

The Lessee/Tenant is not allowed to construct anything on the property without the Lessor/Owner's permission. Temporary decorations, wooden partitions/cabins, and air conditioners are allowed.

The Lessee/Tenant is not allowed to make any alterations to the property without the written consent of the Lessor/Owner.

The Lessor/Owner or their authorised agent may enter the property for inspection or repair work if needed.

The Lessee/Tenant shall keep the premises clean and bear the cost of minor repairs.

Either party may revoke this agreement by serving one month's prior notice.

Both parties have read and understood this agreement and have agreed to sign it without any pressure.

In Witness Whereof, the Lessor/Owner and Lessee/Tenant have subscribed their signatures on [date] in the presence of the following witnesses:

[Name of witness 1]

[Name of witness 2]

[Lessor/Owner] [Lessee/Tenant]

What Is a Lease Agreement?

A lease agreement is only a contract outlining the monthly rent payment and duration between a landlord and a renter. Like many contracts, leasing agreements are legally complex with a lot of terminologies. On the other hand, it will be simpler for you to avoid disagreements or fees that are unnecessary during or after your lease is up if you have a basic understanding of what is included in a lease agreement.

Types of Lease Agreement

All kinds of property, including automobiles and boats, are available for leasing. Nonetheless, leasing agreements are most typically used for real estate, including both residential and commercial properties. The following are a handful of the most typical lease types:

  • Commercial lease: Commercial real estate, such as offices
  • Condominium lease: A home that is shared with other residents of the same building for some building amenities
  • Family member lease: For renting out real estate to relatives
  • Hunting lease: To lease a property for hunting on private property
  • Lease-to-own lease: Provides the tenant the choice to buy the property from the landlord
  • Month-to-month lease: A specific kind of short-term lease contract
  • Parking space lease: To be utilised when parking a car on a private property
  • Room lease: Renting a single space inside a house
  • Standard lease: Utilised for residential buildings including single-family homes, apartments, and other abodes
  • Sublet lease: A lease written by the tenant specifically to cover another tenant
  • Short-term lease: Used for brief leases lasting atypically lengthy times
  • Weekly lease: Frequently used for vacation homes.

Benefits of a Lease Agreement

  • Preservation Of Ownership
    Without transferring ownership of the specified property, the lessor transfers all risks and gives a contingent award for ownership to the lessee in a lease. The lessor therefore has ownership of the asset.
  • Advantage of Tax
    As the lessor is the legal owner of the item, the buyer can claim the tax benefit to qualify for Income Tax Act exemptions.
  • Growth Prospects Leasing is one of the most affordable finance, thus demand for it is always rising. Moreover, leasing allows for the maintenance of economic growth even when the economy is through a downturn. Given this, leasing might experience greater growth than other business models.
  • Quicker Returns
    Compared to investments in other projects with longer payback periods, leasing a property allows the lessor to receive lease rentals sooner.

What Are the Contents of a Lease Agreement?

  • Contact Information: Provide contact details for the landlord and every adult who will be living there
  • Property Details: Include the property's address, size, features, and other crucial details in your description
  • Lease Specifics: Provide details about the lease's kind, such as residential, and its terms, such as the expiration date
  • Rent Details: Include the monthly rent payment amount and the due date on the schedule
  • Rights and Obligations: Provide landlords and tenants access rights and notice-giving authority
  • Dispute Resolution: Describe the procedures for resolving any property or lease agreement disputes
  • Deposit and Fees: Indicate any security deposits, other fees, and their associated amounts
  • Occupancy Limits: Provide specifics on who and how many individuals are allowed to live on the property
  • Restrictions: Specify any limitations, such as not adding new appliances or modifying fixed fixtures
  • Pets: Indicate whether dogs are permitted and any restrictions that may apply while they are on the property
  • Maintenance and Repairs: List the landlord's maintenance and repair services.
  • Utilities: Describe Who is in charge of paying for which utilities.

Documents Required for Lease Agreement

  • Aadhar cards, receipts, or any other form of identity ID are all acceptable
  • If the tenant is not an Indian resident, submit the original passport; if the ID shows another person for the registration, present a power of attorney
  • Authentic copy of the landlord's property's proof of ownership
  • Recently passport-size photos two copies
  • Print the residential rental agreement on the recommended-value stamp paper.

Lease Agreement Registration Process

  • Step 1: Fill up the legal template with all the pertinent information (for the landlord and tenant)
  • Step 2: Provide a copy of your Aadhar Card and another form of identification, such as a PAN card, voter identification, driver's licence, or passport
  • Step 3: Finish the online payment, which includes small fees for registration, stamp duty, and other services
  • Step 4: Once the contract has been authorised, the service provider will start the legal processes. Within a few days, the registered rental agreement will arrive at your door.

Lease Agreement Format

This Lease Agreement is made on this ___ day of _________20___ at _______________ by and between

First Part
(In case the property is owned by a company)

_______________________, a company incorporated and registered under the Companies Act, 1956, and having its registered office at: ________________________________________________________, through its Authorised Signatory ____________________, having contact details:

Correspondence Address:
Email:
Telephone/ FAX:
‘Lessor’ refers to the party of the First Part, including its members, shareholders, directors, successors-in-interest and assigns.

OR

(In case the property is owned by an individual)
Mr./ Ms.
Permanent Address:
Correspondence Address:
Email:
Mobile:

If the property is owned by an individual, ‘Lessor’ refers to Mr./Ms. [Name], their heirs, legal representatives, administrators, executors, successors, and assigns, party of the First Part.

Why Vakilsearch?

Vakilsearch's lease and rental agreement drafting service is an excellent resource for landlords and tenants looking for professional, reliable legal support in drafting their rental agreements.With a team of experienced lawyers and a user-friendly online platform, Vakilsearch offers a hassle-free and cost-effective solution for all your Rent Agreement needs. We ensure that your rental agreement complies with all legal requirements and is tailored to your specific needs and circumstances. Whether you're a landlord looking to protect your property or a tenant seeking to safeguard your rights, Vakilsearch's lease and rental agreement drafting service offers a comprehensive solution that you can trust.

FAQs on Drafting Lease and Rental Agreement Online

During a predetermined amount of time, ownership is transferred through a lease agreement, during which the real owner has no possession. A landlord has complete authority over the property under a lease. The terms and conditions are explained and outlined in a rental agreement.
Agreements for a lease or rent are made between a lessor and a lessee. Yet, a lease agreement is created when the lessor agrees to let the lessee use a property for a specific amount of time in exchange for making a single payment once the parties have signed the contract.
You must submit a lease agreement on properly printed, electronically stamped paper to the Sub-office registrar's in order to register it.
The names of the lessor, the lessee, or their representatives. The property's description. Rent amount, due dates, grace period, and late fees. Also the Rent payment method is also classified.
No, the rent agreement and lease agreement are not same.
The three main types of leasing are finance leasing, operating leasing and contract hire.
Lease rent is a rental payment made by the tenant to the landlord for the use of a property under a lease agreement. The lease rent amount is usually fixed and paid on a regular basis for the duration of the lease.
  • Lower monthly payments
  • Little or no down payment
  • More Amenities for less money
  • The renter and landlord's names and addresses
  • Both the landlord's and the tenant's signatures
  • Rental fee per month
  • Deposit for security
  • Costs for maintenance
  • Length of stay
  • Rights and obligations of the landlord
  • Rights and obligations of the renter.
11 months or more has to be registered under Section 17 of the Indian Registration Act.
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