Real estate sector today has become one of the most profitable and rewarding sectors. It is a sector, which needs high investment, but then the rewards and the benefits are also high in return! People are buying properties and plots as a means of investment. The recent years has shown how rewarding and benefiting the sector is and how much fluctuation is present in this sector.
People buy and sell houses to earn money and make sure that their wealth multiplies and they get wealthier. Another option one can opt for making the best use of the property is to rent or lease it. Most important thing while renting or leasing a property is making an agreement.
(See Also – Should I rent or should I be homeowner)
It is very important to make an agreement to be lawfully protected against any conflict that may arise between the property owner and the person living on rent. There are several laws and rules, which are implemented by the government to ensure the security of both the parties. Some of the points of laws in simple language are as follows: –
- Tenure of the rent agreement: – the laws clearly state that a lease and license agreement should be of 11 months. This is to ensure that rent control laws do not apply to the agreement. The clauses and the points are clearly mentioned in the agreement to avoid any further conflict. The rent agreement can be renewed if both the parties agree to renew it. If the rent agreement is equal or above than 12 months, then it is known as lease agreement that all together has a different set of laws and especially the rent control laws which restrict the landlord to charge rent above a specific amount and give property rights to the resident. People usually let their rooms for rent in Hyderabad for a period of 11 months to avoid inconvenience. (Related – Ways to save money while renting)
- Security deposit: – the laws clearly mention that the resident has to pay a security deposit. This is to ensure that the resident cannot cheat or fraud the landlord and run away after availing his property. As per the laws, the security deposit should be equal to three months of rent amount. The amount of the security deposit is returned after the rent period. If the resident has occurred any liabilities, they may be cut from the security deposit.
- Rights of tenant and property owner: – the laws also clearly state the rights of both the parties; the property owner and the tenant. A tenant is entitled to a rent book, minimum standards of accommodation; to complaint against neighbors in case of harassment due to noise or interference etc. A property owner has the right to receive timely rent; he or she can give advance notice if he or she wants the tenant to leave due to any reasons, etc.
- Duties of tenant and property owner: – the tenant has to maintain the property, give timely rent, inform the property owner if he or she needs to make any changes in the property, comply with the clauses, etc. The property owner also has several duties such as reimbursing the tenant if he or she has made any repairs on the property, return the security deposit, pay local property tax, etc.