Rent Agreement- If you are going to get a rent agreement, then take special care of these things
Nowadays, it has become a common thing to increase the source of income by giving houses, shops, and places on rent. In such a situation, if you are also planning to rent out your house, then it is important to take special care while signing the rental agreement. This agreement outlines the terms for both the tenant and the landlord, and neglecting to make a complete and clear agreement can lead to problems later. Let us know what things should be taken special care of while making a rent agreement-
Avoid the wrong tenant: Check the complete background of potential tenants. Renting to the wrong person can cause problems in the future.
Determine the rent wisely: Consider your maintenance costs and make sure that the rent you set covers these expenses. Make sure the tenant understands his responsibility to maintain the property.
Set up the tenancy professionally: Take the tenancy like a business. Ensure that the tenancy agreement is properly executed before handing over the property to the tenant.
Tenancy period: Generally, a standard tenancy period is 11 months. Choose the period wisely based on your needs and the tenant’s situation.
Termination and notice: Clearly state the conditions in the agreement under which the landlord can terminate the tenancy. Both parties should agree on a notice period, usually one month, to vacate the premises.
Lock-in period: Include a clause according to which the tenant must inform the landlord in advance whether they wish to vacate the property or not. This prevents sudden departures without proper notice.
Payment terms: Set a fixed date for rent payment. Ensure that the tenant is aware of this date and adheres to it.
Default clause: Define the conditions and penalties for default on rent or other breaches of the agreement. This provides a clear framework for addressing any issues that arise.
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