Things To Check Before You Sign A Rent Agreement
If you are planning to rent an apartment or house in India, it is important that you know what to look for before signing a rental agreement.
There are many things that can be included in a lease agreement, and not all of them are favorable to the tenant. In this article, we will discuss some of the most important things you should check before signing a rental agreement in India. Keep reading for more information!
Things To Check Before You Sign A Rent Agreement
Before signing a rental agreement, it is important to inspect the property and make sure that everything is in order. In India, there are a few things you should always check before signing on the dotted line.
Here we will discuss the things you should check before signing a rental agreement in India. Keep these tips in mind, and you will be sure to find the perfect place to live!
1. Notice period & penalty:
In India, there are a few things you should check before signing a rental agreement. First, take note of the notice period and penalty.
Most agreements have a minimum notice period of 30 days. If you want to leave earlier, check if there is a clause that mentions an early exit fee. Usually, one month’s rent is charged as the penalty.
2. Rent & Deposit:
The second thing you should check is the monthly rent amount. Make sure that the rent is affordable for you and that it is within your budget.
It is also important to check the security deposit amount. This is usually one month’s rent, but it can vary depending on the landlord.
The agreement will mention the monthly rental amount and the security deposit (one or two months’ rent). Make sure that the rental amount is in line with the prevailing market rates.
3. What the Rent Includes:
The monthly rental amount usually includes utilities like water, electricity, and gas. However, check if it also includes maintenance charges and property taxes.
4. Type of tenancy:
There are two types of tenancy agreements in India – leave and license agreement and lease agreement. A leave and license agreement is for a period of 11 months, after which it can be renewed. A lease agreement is for a period of at least 12 months and can be renewed after the end of the term.
5. Check if the property is freehold or leased:
If the property is on a lease, check how long the lease period is and if it can be renewed.
6. Get the agreement registered:
Once you have signed the agreement, make sure to get it registered at the office of the sub-registrar. The registration fee is usually around 0.25% to 0.50% of the total value of the agreement.
7. Visit the place before signing the agreement:
Before you sign the agreement, it is important that you visit the property and check if it is in a good condition.
7. Check if there is a lock-in period:
Most agreements have a lock-in period of three years. This means that you cannot leave the property before this period is over.
8. Read the agreement carefully:
This is one of the most important things you should do before signing any agreement. Make sure that you understand all the clauses included in the agreement. If there is anything that you do not understand, ask for clarification from the landlord or property owner.
9. Utilities:
Check if utilities (electricity, water, gas, etc.) are included in the rent or if you will have to pay them separately.
10. Furnishing:
If you are renting a furnished apartment, check the condition of the furniture and appliances. If they are damaged, you may be held responsible for repair or replacement costs.
11. Lease term:
Another important thing to look for in a rental agreement is the length of the lease. The lease term is usually 11 months, after which it can be renewed. Check if there are any clauses that mention a hike in the rent after the first year. Be sure to ask about this before signing anything!
12. Insurance:
Insurance is not mandatory in India but it is a good idea to take out an insurance policy for your belongings. Public liability insurance for rental properties provides crucial protection for landlords against claims for injury or property damage from third parties.
Finally, you will want to read over any clauses or fine print in the lease agreement before signing it. These could include things like late fees, pet policies, or other rules that you may not be aware of.
These are some of the important points that you should keep in mind before signing a rental agreement in India. Do your research and be sure of what you are signing up for before you put your name on the dotted line.
By following these tips, you can be sure that you are signing a rental agreement that is favorable to you. Do you have any other tips to share? Let us know!
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