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8 Clauses You Must Have In Your Rent Agreement

A rent agreement is additionally called a lease agreement. It is essentially an agreement between landowners and tenants. This agreement guarantees that the two players are legal from their ends when there is any dispute or issue happens. It is appropriately endorsed by both parties and incorporates some particular clauses.

On the off chance that you’re going to get a new property on lease, at that point it is vital to read the lease arrangement completely. Make sure you remember to see every clause composed inside it. After giving it a thorough reading, sign it and after ward buy commercial property.

But the thing to get worried about is what are those clauses? Keep calm! We’ve summarised them for you in this blog. Just sit around and enjoy reading!

Scroll to begin reading!

Table Of Contents

The list of Clauses is as Follows

  • Monthly rent & security deposit
  • Duration Of Agreement & Renewal process
  • Tenants Responsibilities
  • Rent is prepaid or postpaid
  • List of fitting & fixtures
  • Non maintenance charges
  • Penalty for late refunding of security
  • Registration of the agreement

Final Remarks

The List of Clauses is as Follows

1. Monthly Rent & Security Deposit

The first and the most important clause that you should see completely is the month to month lease and security deposit. This clause will clarify what is the amount of the lease you need to charge for the rent and what percent of security you need to deposit to the landowner. You can’t deny the terms and conditions written in this clause. In the event that you, at that point it’s smarter to find some other reasonable property. Ensure you don’t sign it until you have something to talk about with the proprietor

2. Duration Of Agreement & Renewal Process

It is another of the main clauses that you should know momentarily. In this clause, the span of the rent arrangement will be mentioned which will be around 11 months. If you see it for more than 11 months, at that point consult promptly with the landowner prior to signing it. The renewal cycle and strategy will likewise be featured in the agreement under this clause. Ensure you get a clear understanding of it as well.

3. Tenants Responsibilities

In case you’re an entrepreneur and renting a property to set up a Commercial office, then this clause is something you remember to peruse out! In this clause, the entirety of the tenant’s obligations, which means yours, will be mentioned. If you see that responsibilities are excessive and can cost you costly alongside paying rent and upkeep charges, then don’t rent that property.

Look for something different. In any case, one thing you need to remember is responsibilities will be mentioned in each rent agreement, which can be less or more. Notwithstanding, in all manners, being a tenant you need to consider that!

4. Rent is Prepaid or Postpaid

This clause will indicate how you have to pay your rent. Like, in advance or after the end of the month. It will entirely be based on the property owner. If they’re liable to the advance rent policy, then you have to meet it up! However, if you want to pay it at the end of the month, considering your personal factors such as salary and all, then have a discussion on it. If they agree to your viewpoint, then sign the agreement. However, look out for another property.

5. List of Fitting & Fixtures

If your preference is buying a fully furnished property where you can get everything in working condition, then it’s a great idea. But one thing you have to ensure before signing the agreement is reading the property leaving off terms and conditions thoroughly. In the conditions, it will be clearly mentioned that you have to safely return back the fitting and fixtures such as fans, AC, geyser, and other accessories in working condition to the owner. If you’re ready to do so, then sign the lease agreement.

6. Non Maintenance Charges

There will be some sort of non-maintenance charges written in the agreement as a clause that you must understand thoroughly. The non-maintenance charges are completely payable by the owner. There is no involvement of the tenants. If in case the owner sometimes asks you to pay for the non-maintenance charges, then you can show them a copy of the lease agreement, duly signed by both ends.

7. Penalty for Late Refunding of Security

It is the biggest pain point that many tenants face. Essentially, landowners delay in refunding the security amount and give many excuses. You have to ensure that you read this clause more smartly and actively than others. Neglecting it can end you up with the loss of your valuable money that you deposited as security charges at the time of leasing property. If you have a better understanding of refund and penalty, then you can claim it from the owner in the desired time period.

8. Registration of the Agreement

It is the last clause on this list of clauses. In this clause, you have to ensure both parties, for example, you and the owner have signed the lease agreement and submit it to the authorities for further process. Unregistered rent agreements are not considered for any kind of property dispute as evidence. Therefore, do every action lawfully, so you don’t have to face any issues.

Final Remarks:

We sincerely hope you have read & understood the list of 8 clauses in the rent agreement. No matter you’re giving factories for rent or are buying commercial land on lease, the agreement helps in numerous ways. If you don’t give importance, then both parties can impose restrictions violently. This is why no matter how much time, you’re buying or renting out the property, do sign & register the agreement.

If you have suggestions on a rent agreement or have any experience to share with us, then don’t hesitate. Write to us freely!!

Elena Gilbe
Elena Gilbe is a commercial property consultant at “Gormankelly”. She handles all the activities that are related to real estate property. She loves to share information about the real state industry.

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