A rent and lease agreement is a legal document signed between the tenant and the
landlord to avoid unnecessary disputes.
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A lease is where the owner of a property (lessor) agrees to rent their owned property to another person or tenant (lessee) for a particular duration of time. The lessee has to make a one-time payment or a series of periodic payments for the use of the property. The agreement that makes such an arrangement possible is known as a lease agreement. This agreement covers the terms of using the property and the time period for which such property is rented out.
A rental agreement is also similar where an owner of a property (landlord) gives temporary possession to another person (tenant). Unlike the lease agreement, a rental agreement is for shorter durations and the payment for possession is done on a monthly basis. The terms of the agreement, usage and payment details are decided by the landlord and the tenant.
It is very important to note that in either agreement the rights of the lessor-lessee and the landlord-tenant are not affected. The agreement should be such that both parties are satisfied with the terms and conditions. Thus it is advised to take help from professionals who will handle that for you.
Other than that, lease and rental agreements also act as proof of address and identity.
In India, landowners and tenants can use a variety of leasing agreements to formally record their living arrangements. Following are a few of the most typical forms of leasing agreements:
Fixed-term Lease Agreement: This is the most common type of rental agreement in India, where the landlord and tenant agree to a fixed-term lease, usually for a period of 11 months. The lease's terms and conditions, such as the monthly fee, security deposit, and upkeep obligations, are detailed in the agreement.
Renting Agreements: A residential rental agreement must be prepared if an individual or a family is searching for rented housing, such as a home, a flat, or a piece of land. It is a written statement of the terms and conditions of a lease, including the duties of the landlord and renter. This agreement is for the individual who wishes to inhabit the land for a predetermined period of time temporarily.
Commercial Rental Agreement: These agreements are only used for business reasons, as the term implies. The formal document you use to hire a commercial property to or from another individual or company is known as a commercial leasing agreement and is one of the different kinds of lease agreements. Instead of being used for domestic use, the land is used for business. It could be a single room, a complete structure, a tiny store, etc.
Arrangements for Renting a Single Apartment: Single room rental agreements are one of the numerous leasing contract types. Some people prefer their own privacy, so they typically choose a solitary room. Tenants have entered into this arrangement.
Rent-Sharing Arrangements: For those who want to lower their expense of life, this agreement works best. When two or more people decide to share a home, they enter into a contract outlining all the terms and conditions, which is then recorded for future use by both parties.
Sublease: This kind of leasing arrangement allows the tenant to sublease all or a piece of the property to another party. The terms and circumstances of the subletting contract are laid out in the sublease agreement.
|Short-term agreement||Long-term agreement|
|Usually month-to-month||Typically for a year or more|
|Rent can be raised with notice||Rent is usually fixed for the duration of the lease|
|Fewer restrictions on moving out||Penalties or fees for breaking lease early|
|Less security deposit required||Higher security deposit may be required|
|Landlord responsible for repairs||Tenant may be responsible for repairs|
|Less paperwork and legal formalities||More paperwork and legal formalities|
|Easier to negotiate terms||Terms are usually non-negotiable|
|Less commitment||More commitment|
|More flexibility||Less flexibility|
There are certain terms and clauses that an ideal rental or lease agreement must include. Rent and lease agreements vary according to the parties requirements. It is thus necessary to elaborate on those requirements in a specific manner so that nothing is left out. If such agreements are made without the help of a professional, the parties can be duped or cheated. It is thus suggested that experienced professionals handle these things for you so you don’t have to worry about such aspects. Vakilsearch is one such organisation that will look out for your requirements and draft a rent/lease agreement keeping your interests and needs in consideration. With service standards that are client-centred, reliable, and ethical, we will always be here to support you.
Note: For every issue or concern you may have, our experts will assess your situation and advise you on the best course of action.