5 Important Things To Check Before Signing A Rental Agreement

Congratulations to you. You have finally managed to freeze a good rental house for your family and one that matches all your criteria in terms of rent, security deposit as well as a lot of other critical features.

The landlord also seems friendly and a good professional real estate agent has managed to secure this very good rental deal for you. However it is absolutely critical for you to ensure that the relationship that you have started so smoothly remains cordial and fair for the next 3 years (or whatever period of time you have signed the rental agreement for). To move bag, baggage and one’s family multiple times in a couple of years is the last thing that any busy individual would prefer.

There are two major aspects that would come into play when or while you finalize the rental deal.

The first one is the physical one wherein you would check the condition of the house, the neighborhood, the water supply, electricity supply, etc.

The other one is the due diligence in terms of the agreement that you would be executing with the landlord. This will come into play once you have finalized the apartment for rent but it is definitely the more crucial factor because of the legal impact and weightage that it carries.

The Leave and Licence Agreement or rental agreement that you sign and register carries a lot of implications. It could be a potential safeguard for you throughout your rental tenure or it could be the cause for various disputes and unfair behavior from the landlord or vice versa.

Let us start listing the 5 major points that you should, as a tenant, bear in mind while signing a rental agreement.

Confirm the title of the home owner / landlord. The ownership of the rental home that you have shortlisted can be verified by checking the title deeds, maintenance bills, share certificate, utility bills, society records, developer records and other means. Kindly ensure that your property agent and your property lawyer help you to ascertain the title and the ownership of the rental home that you are finalizing.

Get the rental agreement drafted by a professional real estate lawyer who can work in tandem with your real estate agent. Make sure to add any specific clauses or conditions that would apply in your case (depending on the apartment that you shortlist or even on the negotiations frozen with the landlord). Insist on getting a soft copy mailed to as well as the landlord to read much before the actual signing and registration so that there are no surprises for either party during the actual documentation and procedures.

Ensure all the crucial clauses like repairs, rent increase, lock in period, notice period, penalty clauses, dates, amounts, etc. are well defined and easily understandable. These clauses are most likely to flare up into action in case of any dispute or challenges during the tenure of the rental agreement.

Do not hesitate to ask for clarifications on any clause or conditions that you are unable to understand properly. Since legal documents carry a lot of legal jargons, it is essential that you have a clear communication with your real estate agent and your real estate lawyer to make sure that you are not signing anything that you have not fully understood and fully accepted.

The best thing would be to request your real estate agent or you can yourself to jot down all major points and understanding like rent increase, lock in period, maintenance costs (generally a landlord always bears the maintenance costs in a rental deal), penalties in case of delays, sharing of the stamp duty and registration charges (in rental deals this is generally split equally between the tenant and the landlord), etc. at the very start of the deal. It means at the point of giving a token or a handshake amount, you should be absolutely clear with all the major terms. These can then be incorporated along with all the other basic rental clauses that the real estate lawyer will suggest.

A little attention and discretion before you sign and register the rental agreement for the apartment you are taking on rent will go a long way in ensuring a peaceful for both you and your landlord in the years to come.