Rental Agreement
Description
What is a rental agreement?
A rental agreement is an important legal document that needs to be completed successfully before a landlord rents a property to a tenant.
This agreement is signed by both landlord and tenant that orders the terms of the rental relationship. It basically acts as the guide for how each party needs to act and what each party can expect from the relationship.
It is necessary for you to know that if the terms of the rent agreement are broken then it will act as evidence in a court hearing. This agreement properly explains all the responsibilities and terms over a set time period.
A rental agreement is calculated on a monthly basis and is mainly a tenure of a short period typically of 11 months. For these, monthly rents are charged by the landlord and the tenant handles it as per the terms and conditions mentioned in the agreement.
You need to know that the rental agreement is a contract of rental which is written among the landlord of the property as well as a renter who wants to have provisional ownership of the property.
It is often different from a lease which is more typical for a fixed term. This rental agreement clearly recognizes the parties, the property, the term of the rental as well as the amount of rent for the term.
It is a written agreement that specifies the terms of the rental property that are further prepared and managed under contract law.
Why it is required?
This agreement is an understanding that offers great benefits to both landlord and the tenant by safeguarding unexpected expenditures.
There is always a need for a lawful document if the value of the asset is indulged in high and the rental agreement serves as legal protection.