Online Rent Agreement, Lease Agreement
Otherwise known for its traffic, Bangalore is home to many startups and IT companies. As a result, the demand for commercial and residential space is high. Seeking job opportunities, a number of people travel to Bangalore and become a part of it. Though finding a job is relatively easy, the tough part is to get through the rental processing, especially the rental agreement.
Just when you put the term ‘rental agreement’ across, individuals see it as a task of great hassle. However, it is necessary for you to get proper information about the rental agreement and its processing in Bangalore. Below we address some of the frequently asked questions that will make it easier for you to get through the process in Bangalore.
A number of landlords make the processing of the rental agreement a complicated process for the tenants so that they do not have to create a rental document and avoid paying tax. However, there are many benefits that a rental agreement brings with it for the tenant. So, you should always insist on the creation of one.
Basically, there are two types of rental agreements:
A rental agreement offers the right to tenancy to the tenant for a short period of time (typically 11 months). Once the duration ends, the period can be automatically renewed. The cycle continues until the landlord or the tenant wishes to end it with mutual consent.
The tenant has to pay monthly rent and a one-time deposit. In most cases the deposit is refundable.
As opposed to the rental agreement, a lease agreement is for a longer time period of 12 months or more. When any rental property exceeds the timeframe of 1 year, a number of laws apply to it. As a result, the legal documents for the same have to be framed very carefully.
As the time duration of the tenancy is longer, the deposit is high, which is paid when the tenant vacates the property. Unlike the rental agreement, the lease agreement is terminated after the lease expires. This means that the contract does not renew on its own. Both the tenant and the owner needs to go through the entire process to renew the agreement.
Till the new lease agreement is made, the tenant has to pay the rent on the daily or weekly basis.
The government of India allows the landlord to collect a security deposit from the tenant before he moves in. The security deposit should not be more than a total of two or three month’s rent.
In case a tenant damages the property and absconds it, the owner can use the security deposit to cover the expense on the repair works. However, when the tenant is in the flat, and some kind of maintenance or repair work is needed, the owner cannot use the security deposit. He has to pay it from his pocket.
However, this has to be taken in writing while creating your rental agreement to avoid any conflict in future. Also, it is crucial to discuss with your owner about the refund. Some of the owners require tenants to look for their replacement, and only then they release the deposit.
Having the critical issues resolved before moving in and taking the same in writing helps keep away potential conflicts in the future. Below are some of the aspects you need to iron out:
There are some other clauses with regards to food habits, late coming, drinking, smoking, pet ownership, etc., which you can discuss if at all it apply to you.
Karnataka is the first state to replace conventional stamping with stamping completely. You need to notarize your rental agreement, even though it is for a period of 11 months, as a fraud-deterrent measure.
As per the law in Karnataka, the maximum stamp duty that can be collected is not more than Rs. 500 for the processing of a rental agreement. However, it is calculated as follows:
Besides the stamp duty, the registration of the rental agreement is 1 % of the annual agreement + deposit. A number of people do not take the stamp duty and registration seriously. However, a legal rental agreement enables numerous rights for the tenants and landlords and can save them from any type of fraud from the other party.
Every state in India has its personal laws when it comes to legal requirements. In the state of Karnataka, the following are the legal requisites for the creation of a rental agreement:
These were some of the important aspects to consider before renting a property. If you wish to get through the rental agreement process with utmost ease, you can simply log in to NoBroker and get doorstep delivery of your copy.
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