Prior to the tenant’s occupancy in to a rented property, it is very vital to have a tenancy agreement signed by the concerned parties, the tenant and the owner. It is a decision, which is agreed upon by the parties enabling the tenant to reside at a rented property and making it convenient for the owner of the property to attain his regular payments by the tenant.
The contract is signed as a legal formality and is a proof of the tenancy, in order to avoid any disputes between the parties after the property has been occupied. The tenancy agreement can be both oral and written. However, it is advised to have it written, since the oral agreement results in many arguments and clashes, as it cannot be verified. As a written document, the contract is more authentic as a proof of the consent. In case of problems, you can easily approach to the authorities with the agreement.
Since, this document is very vital, it should be designed as per certain rules. Most importantly, any tenancy contract must follow a specific country’s law and cover legal formalities. This enables to give advantages to both parties and makes sure as well that they are following all requirements.
A Tenancy Agreement should fulfill the basic requisites. In a written agreement, each point should be mentioned in detail, with signatures of both the parties. While making an agreement, a third person i.e. a guarantor should be present there. The main job of a guarantor is to make sure that the rent is being paid according to the contract. Moreover, the term or period of the tenancy, with starting and ending date, should be mentioned in the contract.
The payment that the tenant has to submit to the owner, has to be stated in both words, as well as numbers next to the agreed due date for the payments. The owner of the property will then give a written testimonial about the security deposit that he has the right to keep till the tenure of the tenancy. Even the amount of the security deposit has to be in words as well as in numbers.
Even the system of the payments should be clearly mentioned in the tenancy contract for future reference, which will state the way the rent will be paid to the owner; either directly, by the state agent, by mail, cash in hand or by signing a cheque. This will be a written proof holding all the details of the payments.
Moreover, some other issues can be settled in the agreement, as the tenant will have to pay all the utility bills, reconnection fees (in case of disconnection of any service), license fee of television, etc. Besides, points like the tenants should keep the house or property in good condition, no changes should be made in property without the permission of landlord, property rented for the residential use should not be used for commercial or any other purposes, etc can be included in the agreement. Similarly, the responsibilities of the landlords like the repair of property in case of damages (not done by tenant), tax payment, insurance of property from hazards, etc are also covered in the Tenancy Agreement.
The tenancy contract proves to be a record of all mutual agreements decided by both parties, and hence, they are bound to abide by it in order to avoid any disputes.