Why Rent Agreement Is Necessary

Kunal would have avoided this situation if he had read his agreement correctly and made changes that could have better served his interests. There is a great demand for rental apartments. Here are some important things tenants should consider before signing on the dotted line. But even if no formal lease is provided in these circumstances, there should still be documents to prove the terms of the tenancy in case of a dispute at a later date. Owner Background Check: Before signing the contract, make sure that the person who projects themselves as the owner is the actual owner of the home. There have been cases where caregivers or relatives have proven to own a home and deduct rent without the knowledge of the beneficial owner. To check the integrity of the owner, you can consult the official documents such as the CNU and the electricity bills of the company complex, etc. When a property is rented for 24 months at a monthly rent of Rs20,000 for the first 12 months and Rs22,000 per month for the following 12 months. The registration fee for this agreement would be: 2% of the average rent for 12 months: Rs5,040, (average monthly rent is rs 21,000, average annual rent is 21000 * 12 and 2% is Rs5,040). If the agreement includes a deposit, add more than Rs100 and Rs1,100 as a registration fee, bringing the total cost to Rs6,240.

This does not apply to fees due to lawyers or other intermediaries for all documents. Six months later, however, the landlord increased the rent by 10% of the monthly rent, the Rs. 700, as the cost of rent in the area had increased. Now Kunal had two options, either to pay a monthly rent of Rs. 7,700 or to find another low-cost accommodation. Since nothing was mentioned in the lease, Kunal had little choice but to pay the additional rental fees.