Lease Agreement for Renting a House

Real estate is one of the most valued asset nowadays. A person who has a roof over his head has the comfort of coming to a place which he can call his own. In todays economy, not everyone can afford his or her own house, as it's a huge real estate investment. The next best option is to lease or rent a house. The person who wants to rent the house (lessee) and the landlord (lessor) enter into an agreement called as the lease agreement for renting a house. However, prior to conforming to a lease agreement for renting a house, any person is required to have certain knowledge about the premises and procedures of law.

In some countries, laws are so obnoxiously one sided, that if the parties are not cautious enough while signing the apartment rental lease agreement, and if a dispute arises, they can be made to run from pillar to post to get their rights. No one wants to get involved in legal processes, hence, it is advised that for a lease agreement, the best option is to undertake the services of a lawyer or attorney. Consider this as an investment for preventing future disputes.

Features of Lease Agreement for Renting a House

Title: To begin with, the intending lessee must ensure that the premises he intends to lease belongs to the person he or she is dealing with, or the person should have proper authorization to seal the deal on behalf of the actual landlord. For this, the title deeds (the agreements that prove the right of the person over the premises) have to be examined to ensure that the premises stand in the name of the owner who the intending lessee is dealing with. The housing lease agreement should essentially contain proper representation on the part of the landlord stipulating that he is the lawful and valid owner fully entitled to lease out the premises.

Monthly Rent: The terms of the lease agreement for renting a house must stipulate the monthly rent and the last date of payment thereof. It is also best to decide and include the mode of payment, the late fee etc. in the house rental agreement, as this will not leave any ambiguity in the conditions of the agreement and will save you from future disputes.

Tenure: The period of the lease must be specifically mentioned in the housing lease agreement. Most lease deeds have a lock in period and the lessee cannot exit the lease before it expires. If he does so, then he may find himself liable to pay some penalty for premature exit.

Taxes: It is equally important to note that for any apartment rental, there are several outgoings such as local taxes and monthly maintenance, which are payable, and it should be clearly specified as to whether the landlord or lessee is liable for the same. Leaving it unsaid will certainly lead to dispute.

Security Deposit: Most lease agreements for renting a house involve a security deposit to be paid by the lessee. If so, the same should be clearly recorded and acknowledged in the rent lease agreement and the landlord should therein bind himself to refund simultaneously when the lessee vacates the said premises on the expiry of the lease. If this is not done, then the lessee can be made to run around to recover his deposit.

Peaceful Enjoyment: Any lease agreement for renting a house should essentially contain explicit right and authority to the lessee, to use without interruption or hindrance the lease premises during the term of the lease. The landlord should therein bind himself to this aspect to ensure that the lessee has maximum enjoyment of the premises which he has leased.

Registration: In many countries, agreements of lease are required to be registered with an appropriate authority and certain charges by way of stamp duty or levy is payable therefor. If it is so, the lease agreement for rental property should stipulate this fact, and should also provide whether this liability is to be borne by landlord or lessee or, whether it is to be shared.

It is crucial to include all these points in any lease agreement for renting a house. The intending lessee must also minutely examine the conditions of the proposed lease like the renters insurance to make sure that he is not binding himself or herself to any condition which would increase his or her obligation or liability. Another important element to be examined by any intending lessee is the physical condition of the house. Often, after a lessee has moved into the premises, he finds that there is a leakage, or the premises is infested with rodents and termites. Therefore, it is extremely important to consider all these factors and include them in the lease agreement for renting a house. This will ensure that both the parties are aware of their rights and liabilities, thus, resulting in a stress free and long standing agreement.