Renting a house? Check out the documentation first

Renting a house is not that easy, It involves a bit of legal documentation that lists out all the rights and responsibilities of the owner and the tenant. So, read on to know all about tenancy agreements and benefits of it.

If you are taking a house on rent, then it is essential to sign a tenancy agreement with the landlord. This is especially important for the landlord to have an agreement handy which outlines the rights of both parties.

Recently, there have been several cases where a tenant committed cyber fraud from the rented premises, and due to the absence of a tenancy agreement, the police automatically implicated the landlord and considered him to be  involved in the crime as well.

Therefore, it is very important to understand tenancy agreements.

So, let’s understand what a tenancy agreement is, the different types of tenancy agreements, and the legal protections it provides to both parties.

Tenancy agreement

First, let’s understand what a tenancy agreement is.

A tenancy agreement is a legal contract between the tenant and landlord, through which the tenant is granted permission by the landlord to use his or her property for a specified period of time.

In return, the tenant pays rent to the landlord.

The agreement grants certain rights to both parties. It includes the duration of tenancy, rent amount, payment method, and conditions related to property maintenance.

Now, there are several types of tenancy agreements.

The most common ones are rent agreements, lease agreements, and leave and license agreements.

Rent agreement

First, let’s talk about rent agreements.

A rent agreement establishes the terms between the landlord and tenant for a short duration, typically 11 months. Once the agreement period ends, it needs to be renewed. It specifies the rent amount, due date, and maintenance responsibilities.

Lease agreement

Now, let’s discuss lease agreements.

A landlord who leases out their property is called a lessor. When the lessee, or the ones who take property on lease, signs the lease, they agree to a rent amount, lease duration, and other terms. The lease duration can be 3 years, 5 years, or more. The lease contract clarifies what the lessee can and cannot do with the leased property. If the lessee passes away, all rights are transferred to their heir.

Leave and license agreement

Another type of tenancy agreement is called a leave and license agreement.

The landlord grants a person permission to use their property for a short period. Under this agreement, the landlord has more rights and can easily evict the tenant. It differs from other agreements in that it cannot be transferred. If the licensee passes away, their heir does not automatically have the right to stay.

Rent Control Act

Regarding the legal rights provided by tenancy agreements, Advocate Anil Karnawal at the Supreme Court says that the Rent Control Act of 1948 protects the rights of both the landlord and tenant.

Every state has its own Rent Control Act with some variations. This law defines the legal obligations and rights of both parties.

Under these agreements, both parties are granted different legal rights. For instance, the tenant has the right to privacy, meaning the landlord cannot enter the tenant’s premises without prior notice.

The landlord cannot throw out the tenant from the property without a valid reason, meaning the tenant cannot be arbitrarily evicted.

The rent cannot be increased until the agreement is renewed.

As for the rights of the landlord, they have the right to collect rent. If the tenant does not pay rent on time, the landlord can take action. The landlord can periodically inspect their property to assess its condition and check for potential damage. For this, they need to provide prior notice.

If the tenant violates the terms of the rent agreement, the landlord can initiate the process to evict them. Violations include non-payment of rent or damaging the property.

Upon termination of the contract, the landlord can deduct from the tenant’s security deposit the amount of  damage caused to the property.