After owning a house and if
found surplus, we can propose to let it out for a good tenant to have a
neighbor. In this connection, before finalizing the things, once the proposed
tenant agree to the offer made by the owner, including the rental and other terms
& conditions, both the parties
should agree to reduce the terms and conditions in to writing, in order to
avoid any possible misunderstandings, besides the fact that, such relationship
is linked with finance in the form of rental at monthly intervals besides
security deposit amount, as advance.
As far as the Landlord is
concerned, he should make himself sure that the tenant is trustworthy and
credit worthy to meet the financial obligations and honour other terms and
conditions. In this regard, the Landlord shall enquire about the proposed
tenant’s position and his financial background to ensure the prompt and timely
payment of monthly rentals. It is further essential to know about the financial
status and the income source as well as the business place or work office etc.,
of the prospective tenant.
From the tenant’s point of
view, the tenant should first of all satisfy himself that, he is dealing with
the true owner of the house and that there would not be any problem whatsoever
either financially or in any manner, after finalizing the tenancy agreement.
The salient features of the tenancy agreement
are as hereunder.
à The period of
tenancy – usually it shall be for a period of eleven (11) months since if it is
beyond 11 months, say 12 months & above, such an agreement need to be
registered, which involve financial burden either to the tenant or to the
landlord, hence usually, the period of tenancy agreement would be generally
confined to eleven (11) months.
à The date of
commencement and the duration of the tenancy, and the expiry date of such
tenancy period.
à It should contain
whether a notice has to be served by either of the parties to the other, either
for eviction or to vacate the property, before conclusion of the tenancy
period.
à It should mention
whether liberty is given to the tenant
to further renew the period of tenancy, before the conclusion of the
tenancy period.
à It should
specifically mention, under what are all conditions, and/or failures on the
part of the tenant, the tenancy shall automatically come to an end , and the
tenancy shall vacate the house without any notice or correspondence.
à A list showing the fixtures and furnitures,
available in the house, at the time of entering into in such tenancy agreement
should be appended therewith.
à If the tenant is
given the opportunity to further renewal of tenancy period, the rental
agreement, should contain what would be the rent during such extended period,
besides mentioning the period for which such renewal is agreed, and any other
terms and conditions, regarding advance etc., to be specifically furnished.
à The amount of
security deposit payable by the tenant to the land lord, and its mode of
payment to be mentioned therein.
à The mode of payment
of monthly rental should be mentioned.
In case there would be deduction of TDS, such clause also should
invariably be mentioned.
à Most importantly,
the rental agreement should contain several ‘covenants’ separately pertaining
to ‘Land Lord’ and the ‘tenant’ vis-à-vis Do’s and Don’ts to be
mentioned therein.
à It should
specifically stipulate that in the event of default committed by the tenant
either in payment of monthly rentals, or in any manner, as mentioned in the
rental agreement, the tenancy shall come to an end, and the land lord shall
have every right to get the tenant evicted from the premises without further
notice, at the cost and expenses of the tenant.
Besides the above, the rental
agreement should also contain, all other relevant details which will protect
the rights of the land lord legally should be incorporated.
More,
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