Why You Need A Rental Agreement?

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The landlord-tenant relationship is complicated now, so the majority of the property owners will ask you to sign a rental lease agreement. A rental agreement benefits you by securing you from unpredicted expenses.

Creating a tenancy without a formal agreement is possible. But a tenancy agreement is useful. It sets out in clear terms the rights and responsibilities of both the landlord and tenant. It is a legal document between the property owner and the renter that states the conditions of your stay.

Security

A Rental Lease Agreement Secures both the owner and you from unpredictable expenses. A lease secures you from worrying about expensive home repairs. If any types of equipment have any problems, you need to pay for the repairs. If you caused the damage intentionally to rental property, you might need to pay the bills to the property owner.

Rental Disputes

Rental Property protects you from unexpected expenses. If you have any rental dispute with the property owner, it will rescue you. You can employ the rental lease agreement as reasons to file a complaint against your landlord in court if he fails to meet any obligations on time. You can't file sue a complaint if you only have a verbal agreement with the property owner.

HRA Option

You can lower your rent by availing the House Rent Allowance (HRA) exemption if it is a part of your salary. For this, you need to submit your rent agreement for the current financial year and a duly stamped rent receipt.

Purchase Option

People who just rent a property on a monthly basis with a lease agreement may get the advantage of a purchase option. If your landlord wishes to sell the home, he can offer a purchase option. Rent to own is another term used for purchase options. It requires you to pay rent higher than usual, but the added rent goes into a different account to assist you in saving for a down payment. The time you give in the rental lease provides you an opportunity to save added funds or make your credit rating better so that you will be qualified for a mortgage loan once the lease period ends. As soon as the lease ends, you have the choice to buy the property. If you don't have a written rental lease agreement, the purchase option might not be offered to you.

Save Money

The majority of property owner needs a security deposit before signing a lease agreement. A security deposit will cost you much lesser compared to the down payment that you need for a mortgage loan for a new property. Avoid paying different fees which lenders normally charge during the mortgage financing procedure. The monthly rent charged by the property owner will be stated clearly in your lease agreement. So there is no point to worry about it.

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Read more about: rental agreement, real estate
Story first published: Tuesday, June 13, 2017, 13:39 [IST]
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