5 Essential to know before signing a rent agreementAdy
A rent or lease agreement is a legal document stating that the owner and the tenant agrees to accompany the rental rules and the deal. Generally, a rent agreement is prepared by an attorney hired by the landlord and the tenant. Both the owner and the tenant ought to sign the agreement in the presence of two witnesses. The people who are non-beneficiaries of the property and will sign the agreement as witnesses. In most cases, the real estate agent doubles as one of the witnesses. This will validate the agreement.
When you sign a rent agreement, there are certain essentials you need to check to avoid dispute between a tenant and owner. Go through this article to get more details on what to look for when you need to rent a home.
#1. Read the entire agreement thoroughly
First and foremost, you should thoroughly read the entire rent agreement and understand each clause. It is basic evidence of renting a property. Whatever terms and conditions you and the landlord have agreed upon should be mentioned in the document. If you do not understand any part of the rental agreement, consult a lawyer and understand the clause to avoid misinterpretations. Once you have carefully read the contract then only sign and proceed further.
#2. Rent escalation clause
A tenant must verify whether the owner has incorporated a rent escalation clause in the agreement, which could be used to increase the rent following a specific period (generally after one year). Confirm whether the agreement suggests the date after which rent prices would increase and the percentage of increase.
#3. Check property details
It is recommended to check the details of the property. Is the tax payment clear? Are there any other due payments for the property? Is the home is in good condition? Make sure the basic necessities are in working condition at the home like a water storage tank, electric connection, etc. Also, get clear details about the monthly maintenance cost, water bills, and other costs associated with the property. These details will help you to make the right decision to rent an appropriate home for you and your family.
#4. Damage and Repair Costs
Designate the damage or repair costs in the rental agreement before you finally sign in or move into the property. If it requires a repair, ask the owner to finish the work before you move in. This is the most important as it may obligate to pay if some major damages are seen when you leave the property. It is certainly too essential to read the above-said postulates in your rent agreement in order to avoid any discrepancies between both parties.
#5. Notice period & penalty
If each party fails to honour the terms and conditions of the agreement, it will become indefensible and the aggrieved party could demand punitive charges. Hence the agreement should also incorporate notice period and penalty for cancelling the agreement without completing the specified period. Usually, a one-month or two months notice period is served.
#6. Review the owner details
The details of the landlord do not only suggest considering the background of the landlord. In fact, it is imperative to check the details on the papers when you are about to sign the agreement. You must ensure that the person you have been communicating with as the owner signs on the agreement as an owner with you. There have been occurrences when the landlord has handed over the property to a relative or caretaker and they further lease it to the third party without the conversance of the actual owner of the home. Thus, check each detail of the landlord carefully.
So, consider the above mentioned essential points while or before signing a rent agreement. When you are ready to sign an agreement to rent a house, you should be clear about all the doubts related to renting, additional charges, conditions on the property, etc.
These essentials will not only give you peace of mind but also avoid discrepancies between you and the landlord or owner. Hence, do not forget to check for the rent escalation clause, repair charges, property details, and review owned details. And, of course, do read the entire agreement carefully and understand each clause before you sign it!