What is a Rental Agreement?
The rental agreement, often known as a lease deed, is a legal document that specifies the shop rent rules under which the rented property is leased out and must be fulfilled by both the landlord and the renter.
Though most landlord-tenant relationships are pleasant, it is prudent to have a formal rental agreement.In case of any event in which the relationship becomes strained or riddled with complaints and misunderstandings in any situation, a shop rent agreement is crucial to resolve it.
What Must the Shop Rent Agreement Contain?
As per the shop rent rules, any shop rent agreement must include the names and addresses of the tenant, the landlord, the property being leased out, and any other valid entities. The rent period, as well as the payment frequency and amount, must all be specified. The start date of the contract, contract termination circumstances, and reasons to consider when renewing the contract must all be included.
What Are the Things to be Kept in Mind Before You Draft a Shop Rent Agreement?
The shop rent rules, governing rental agreement problems including rent, lease, and mortgage, varies from state to state.
So, here’s a brief rundown of considerations to make before signing a shop rent agreement:
1. Amount of rent and escalation
Every lease agreement includes a provision that specifies the rent you will pay as well as the annual increase.
Remember that if there is no mention of an increase in rent in the rental agreement and the landlord decides to raise it later, you may simply dispute the rise.
Typically, a ten percent increase in rent is indicated after the lease term has ended. As a renter, you should be completely open and honest about this condition, as well as express your acceptance of it.
2. Lease duration, renewal, and security deposit
Furthermore, the rental agreement is renewed at the end of the 11-month period. Along with this, it’s important to maintain track of the security deposit and how it’ll be refunded after the agreement lapses.
3. Termination of the rental agreement
Finally, every rental agreement includes a termination clause that specifies the length of stay and notice time (if applicable). Before signing the rental agreement, this should be a critical checkpoint as per the shop rent rules.
So, if you’re looking for a hassle-less way to draft a shop rent agreement, as India’s fastest-growing rental management company, Housewise can help. We have introduced an online rent agreement service that is available across India. Everything from creating an agreement to collecting all parties’ signatures can be done online with our online rent agreement services. You don’t even have to leave your home to finish the rent agreement paperwork! Contact us to know more about our services.