Rent Agreement
What we’ll cover
- About Rent Agreements
- Rent Agreement FAQs
- Rent Agreement Checklist
What is a Rent Agreement?
Rent Agreement is a legally binding contract between a property owner and a tenant. It sets the conditions under which the tenant may hold possession of the property for a certain period in exchange for rent. The document also makes provisions for other details like rent amount, duration, security deposit, maintenance, and other rules to be followed by the parties. This agreement, if well-drafted, will avoid any kind of dispute and will guarantee a smooth rental experience for both landlord and tenant.
When Can You Use A Rent Agreement?
- When a tenant rents a house, flat or apartment for residential purposes, a rental agreement spells out the terms and protects both parties legally.
- Used when renting office spaces, shops or buildings to clearly define the rent, term and terms of use.
- Ideal for PGs or roommates sharing a flat—this ensures that everyone agrees on the rent share, term and other shared responsibilities.
- For renting out the property on a monthly or weekly basis to travelers or temporary tenants, the terms of stay and damage clauses are clearly stated.
About Rent Agreement
Draft your Rent Agreement here quickly and easily to protect your rights as a landlord or tenant. Start creating now!
How to Write a Rent Agreement
A Rent Agreement is a formal, legal binding contract between a landlord (the “Owner”) and the tenant (the “Renter”), where both parties mutually agree to lease out a property on mutually agreed terms and conditions. Being the principal agreement between landlord and tenant, be it for residential or commercial purposes, a well-drafted Rent Agreement is vital to protect the interests of both parties. For reference, here are some commonly included clauses in a rent agreement along with a brief explanation of what they implicate:
Property Details
Give a very clear description of the rented premises, i.e., complete address, type of property (residential or commercial), number of rooms, furnishings, and any other amenities like parking or garden access.
Term of Tenancy
The agreement shall state the duration for which the premises is rented, which could be month-to-month, year-to-year, or for a fixed period of time (i.e., 11 months). It shall also mention the start date and end date, if any, along with the terms of renewal, if applicable.
Rent Amount and Payment Terms
Provide details about the rent to be paid every month and the late fee that is payable if the rent is late past the due date. Payment by Bank Transfer, UPI, or other means is usually mentioned. The rent may be subject to escalation after a fixed period, and such provisions would be applicable.
Security Deposit
Provides the amount of security deposit payable and refundable, which concerns safety against damages, dues, etc., to the site, along with the time limit and condition under which said deposit shall be refunded.
Maintenance and Repairs
Who shall be responsible for the maintenance and repair works—with the lessor or lessee? Detailed procedures are written in the Rent Agreement on how to report damage or required repairs and the timeframes within which such repairs should be carried out.
Utilities and Bills
Specify who pays for electricity, water, gas, internet, telephone, or other utility bills. If utility meters are shared, explain how the parties intend to share the costs.
Use of Property
Clarify that the property is to be used strictly as agreed upon (e.g., strictly for residential use). Prohibit the use of the premises for illegal or unauthorized purposes.
Subletting and Guests
Specify if subletting or long-staying guests are allowed. A clause must be added mentioning that subletting or keeping guests for more than X days is subject to the approval of the landlord.
Termination Clause
Specify the terms under which the agreement may be terminated by either party and when it may happen. It should normally mention a notice period (generally 30 days) and acceptable grounds for an early termination.
Entry and Inspection Rights
Mention the landlord’s right to inspect the property on giving reasonable notice to the tenant (generally 24 to 48 hours). This protects the interest of the landlord without interfering with the reasonable expectation of privacy of the tenant.
Restrictions
Put all restrictions here such as no smoking, no pets, or prohibition on loud music after a certain hour. These go a long way in building goodwill in an apartment complex.
Damage and Liability
The tenant shall be held responsible for damages above and beyond wear and tear. The lessor shall provide conditions for liability for damages done, intentional or negligent, as well as for compensation.
Legal Provisions
Bridge which laws apply to this agreement, such as Rent Control Act and local tenancy laws. Include the severability of any clause in case it is struck off by a court, and ways to resolve disputes between the parties and the jurisdiction in which any action shall be filed.
Signatures
The agreement shall be signed by both landlord and tenant and the dates indicated thereon. Where possible, two witnesses should also sign to confer greater weight to the agreement.
Registration of Agreement
Mention if the agreement is to be registered with the local municipal authority. In some states, it is compulsory to register agreements which are for a period exceeding 11 months.
By clearly including these clauses, your Rent Agreement will ensure transparency and protection for both parties. Customize the agreement according to your needs, and in case of confusion, have a legal expert draw it for you as per local legislation.
Rent Agreement FAQs
Rent Agreement Checklist
Want to create a clear and legally sound rent agreement? This checklist is for you to ensure all fine details that form a rent agreement have been incorporated while drafting it online. Landlords or tenants may use this guide to make sure their agreement is accurate and valid for use.
1. Include Full Party Details
Begin by entering the full names, contact numbers, and valid identification details of the landlord and the tenant, respectively. Next, include the complete address of the property. These details personalize your document and make it easier to identify who is involved.
2. State the Rent Terms Clearly
Write about the monthly rent amount, due date, method of payment, and late penalty fees so that no confusion or disputes occur during this period. You must also specify details about the security deposit, including the amount and the conditions that make it returnable.
3. Mention the Duration of the Agreement
Define the period of commencement and termination. Also, mention if it is renewable or will automatically terminate on the said dates, and under which terms.
4. Include House Rules and Responsibilities
Enter various clauses of maintenance duties, utilities payment, visitor rules, and pet policies. Specify who handles repairs and what is allowed on the premises. With a well-defined set of rules, you will surely prevent the misuse of your property.
5. Complete with Stamp Duty, Signatures, and Witnesses
Use stamp paper of correct value as per your state regulations. The agreement should now bear the digital or manual signatures of the parties and witnesses of each party. Platforms like Draaft will take you through the whole process and can even help register your agreement once it is ready.
Start Your Rent Agreement Today with Draaft
All Your Legal Needs, Handled in One Powerful Platform
✔ Effortlessly create, personalize, and share all legal & HR documents
✔ Stay protected with automatic coverage through Document Defense
✔ Unlock exclusive savings on business and legal services
✔ Get peace of mind with on-demand access to professional legal guidance
Create confidently. Protect what matters. Get started with Draaft now.
How to Make a One Pager Marketing Story That Gets Results?
People today have short attention spans. They don’t want to read long papers to understand your business. They want clear, quick answers. A One Pager Marketing Story solves this problem. So, what is it, and [...]
How to Make a Pitch Deck: A Simple Step-by-Step Guide with Templates & Examples
Do you have a great idea for a new business or product? Do you want to convince people like investors or judges at a competition to support it? You need a pitch deck! A pitch [...]
Understanding the Profit and Loss Statement: Format, Templates & Examples Explained
Do you know how businesses check if they’re making money? They use financial statements, and the profit and loss statement, also called the Income Statement, is a super important one. This report shows how much [...]
How To Create A Letter Of Intent (LOI) In Minutes? Fast & Accurate Guide
You have an important thing up ahead: perhaps your dream job, an amazing business opportunity, or a partnership that excites you. But how can you possibly put your interest into words without complicating everything? Well, [...]
How To Create An Elevator Pitch In Minutes? Fast & Accurate Guide
Ever struggled to explain what you do in a way that actually grabs attention? That is where an elevator pitch saves the day. So, what is an elevator pitch? It is your chance to [...]
How To Create One Pager (+Free Templates) In Minutes?
Ever needed to sum up an idea in just one page? That’s exactly what a one pager does. Whether it’s a project plan, business pitch, or marketing overview, a one pager design keeps things clear [...]
