Terms of Residential Lease Agreement

Residential Lease Agreement

A residential lease agreement, also known as the residential rental contract or a house lease agreement, is a form used by landlords for renting out property to tenants for a certain period of time. While most tenants never scrutinize their agreements, it is vital to do so in order to serve their interests better and avoid any sort of problems or clashes with the landlords. Most people, in fact, have no idea what the terms of such an agreement include. Listed below are a few clauses and terms that one should definitely check for while sifting through the agreement and before signing the dotted line –

Property description – A detailed description of the property and the surrounding areas, what entails the common areas etc. In some cases, however, the description might include a simple address and a flat/house number.

Parties to the agreement – The lease agreement must have the names of all landlords and all tenants associated with and bound to the agreement. In case, there is someone acting on behalf of the landlord, then his name should be included as well.

Details of the rent – Rent details should not only include the rent amount that is payable by the tenant every month, but should also include other terms such as when the rent is due and where should it be sent or who will collect the rent, and, most importantly, what the rent amount includes (for example, do maintenance of the unit or the payment charges for common areas and other costs come under rent or not). The details should also indicate what the penalties are for not paying the rent on time.

Duration of the lease – Often arguments regarding the residential lease agreement crop up on grounds of the lease term, and the terms on which it ends or can be ended. The agreement should clearly specify the starting and the ending dates of the lease, and should also include under what terms the tenant and the landlord can terminate the lease. The contract should also specify the terms of lease termination for both parties (for example, a month’s notice for smaller duration leases and no penalties but significant amount in penalties for terminating long-term leases)

Security deposit – This deposit is usually taken by the landlord as a security cover, and the terms should specify when and under what conditions it will be released to the tenant.

Lease renewal and sublet – The agreement should also have a clause which stipulates if, how and when a tenant can renew the lease, and also should have the terms of sublet, in case the tenants are allowed subletting the space.

Other charges – The lease agreement should also contain who is responsible for paying other charges on the property such as utilities such as gas, water, and electricity, as well as for maintenance and repairs.

Other stipulations – There should be a clause which specifies whether pets can be brought into the premises or not. Other terms such as alteration to premises and right to enter and inspect should also be included in the residential lease agreement.

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by Sridhar Kulkarni via Shriram Properties Bangalore