A rental agreement provides for occupancy of a short duration that is automatically renewed at the end of the period unless the tenant or landlord ends it by giving written notice. For these month-to-month agreements, the landlord can change the terms of the agreement with proper written notice.
A parcel agreement, on the other hand, gives a tenant the right to enthrall a rental unit for a set period almost constantly for six months or a time but here and there longer– as long as the tenant pays the rent and complies with other parcel vittles. The landlord can’t raise the rent or change other terms of the occupation during the parcel unless the tenant agrees.
Why is a Lease Agreement important?
A parcel agreement is a legal document that helps cement the formal relationship between the letter and the border and ensures that both parties are on the same run concerning the terms and conditions of the parcel. A parcel agreement helps to cover the interests of both the letter and border and significantly reduces the chances of any difficulties moving forward. It serves as validation to the arrangement between the parties and provides for contingencies that may arise in the future, thereby reducing the possibility of disunion in case of misgivings.
Important points to ensure an effective parcel agreement
Given below are the important clauses and considerations that must be kept in mind while drafting and executing aLease and House Rental Agreement.
Particulars of Parties
The agreement must contain important identification details of both the border and the letter analogous to full name, address, etc.
The amount of rent outstanding by the border should be jointly decided beforehand by the parties and must be fluently stated in the parcel agreement.
still, the parties can also agree upon and specify the quantum of increase in the amount outstanding after a specified period, If demanded. This helps cover the border from unlawful demands and also protects the profitable interests of the letter.
The date on which the rental amount is to be paid as also the mode of payment must be decided in advance and fluently specified in the agreement.
The parties can also give a penalty in case of delayed payment by the border.
To know more about then you can go through here- House Rental Agreement Form
Duration of Tenancy and Renewal Criteria
The duration of the parcel must be fluently stated in the agreement to help future conflicts between the parties.
The agreement should fluently mention the conservation costs of the leased property and who will be the deliverer of the same to help any confusion in the future.
The agreement should also contain a wear and tear and gash and incision clause stating that the tenant will return the property in the condition in which he entered it, subject to normal wear and tear and gash and incision, as long as the same was not caused by any direct act or negligence.
List of Amenities and Institutions
still, as in the case of a fully furnished demesne, the agreement must list out the amenities and institutions on the demesne along with their exact condition former to handing over possession, If applicable.
Rules of Practice and Permitted Use
The agreement must stipulate the intended use of the leased/ rented demesne to remove the trouble of conflict on this aspect.
The agreement should lay down the exertion permitted and banned on the demesne along with restrictions, if any, along with a penalty clause in case of breach of the same.
It should also mention the security deposit and the exact volume plus when will it be repaid to the tenant on recovery of the property by the landlord. The agreement should fluently state whether this deposit is interest-free.
The agreement should give for the process of exit by either party former to the completion of the duration of the occupancy/ parcel and the conditions of analogous exits, analogous as a penalty, notice period, etc.
The agreement should fluently specify how and in what circumstances the agreement can be terminated by either party. Whether it would be a fault-predicated and no-fault termination or both. Fault- predicated termination rights are touched off when one party breaches any terms and conditions of the agreement.
Force Majeure Clause
Another important clause that should form a part of the agreement is the ‘ force majeure ’, also known as the ‘ Act of God clause, which helps give for abrupt contingencies akin to the COVID- 19 epidemic which may help the fulfillment of contractual scores.