Rent or lease agreements are legally binding contracts. The agreement requires the owner and the tenant to abide by the rental laws and the terms of the agreement. In many cases, the landlord and renter appoint the same real estate agent to draft a rent agreement.
To legitimize the agreement, both the landlord and the renter must sign it in the presence of two witnesses who are not beneficiaries of the property and are willing to act as witnesses. Usually, the real estate agent also serves as a witness.
There are a few things you should know before signing a rental agreement, so you don’t wind up in a financial or legal bind.
Before you sign a rental contract, you should take the time to review the following items.
- Visit the place
Visit the rental premises before signing the leasing agreement. To assure that the location is as real as it seems, do a reality check at least once. As well as inspecting the house’s condition, you must ensure that all electrical and water connections work.
A walkthrough of the property is always recommended before signing a leasing agreement. Take note of any damage you witness, no matter how little. Take photographs and videos to capture the property’s condition.
- Understand the Agreement
Rental agreements are not easy to read, but it is critical that you understand the sort of tenancy contract you have before signing. There are a handful that should be double-checked in particular.
- Rent Tenure -Note the move-in and move-out dates to be sure they’re correct
- Landlord Details – Make sure the landlord’s and every tenant’s name are on the contract
- Obligations -Take note of your obligations while you’re renting and make sure you agree
- Security Amount – Check security amount is mentioned before signing the agreement
- Renewal Terms- Note down the date and tenure including the condition of renewal terms
- Rent Payment date – The agreement also includes the rent payment date, Make sure it is mentioned correctly
It’s critical to understand what the landlord will and will not change. Examine the landlord’s inspection clauses. Do they make you feel uneasy? Before you sign anything, check the legislation in your region and talk to your landlord about it.
- What the Rent Includes
Examine the leasing agreement’s fine language to ensure you understand what your rent payment involves. Don’t assume that utilities are included in the monthly rent.
The rent agreement may also include other monthly expenses to be paid by the renter, such as the society maintenance charge, energy bill, and water bill.
Some landlords charge service fees as well. After you sign the contract, you don’t want to be surprised by charges you can’t afford.
The rent agreement may also include a description of the property’s amenities, such as parking space. These additional expenses, as well as who is responsible for them, should be explicitly stated in the rental agreement.
- What About the Deposit?
You will have to pay a deposit. Ensure the lease agreement specifies the amount and when you will receive it after your lease expires.
Make sure you are aware of the security deposit laws in the state where you are looking for a rental house. Find out more about security deposits on this page.
- Notice period & penalty
It will become null and void if either party fails to uphold the terms and conditions of the agreement, and the aggrieved party may seek monetary damages. As a result, the agreement should include a notice time as well as a penalty for cancelling the agreement before the designated term is completed. Typically, one month’s notice is provided.