Tuesday, 27 March 2018

Do You Know Why Your Rent Agreements Are Generally For 11 Months?

Every one of us is aware that the rental agreements are made for 11 months only. Have you wondered why these 11 months’ time frame required? Have you even asked yourself what is the actual need for the agreement? The foremost requisite for the rental agreement is to keep the track of the interest of both parties: the tenant and landlord.

Coming to the comprehensive understanding of the rental agreement, it is a legal document framed in between the property owner and tenant which also guarantees the interest of the both these parties. The contract evidently lays down the privileges of the landlord and tenant. It also prevents the needless removal without previous notice of minimum one month.

Rent Agreement

The rent agreement also known as a lease agreement is the written contract between the landlord (property owner) and the tenant who takes it on rent. The contract defines the terms and conditions based on which the property is let-out such as the property description (like address, size and type), monthly rent, security deposit, purpose for which the property is to be used (whether commercial or residential) and finally the duration of the contract. The terms and conditions are negotiable prior to signing as it binds on both, the tenant and property owner. It also describes the situations under which the agreement can be dismissed.

Why 11 Months?

As per the understanding, most rent contracts are signed for 11 months which acts as an evidence, so that they can avoid stamp duty and other charges. As per the Registration Act 1908, the registration of a lease agreement is obligatory, if the leasing period is more than 12 months.

 A rental agreement comprises the obligations and accountabilities of all the parties concerned. A good rental agreement should exclusively indicate the names of the parties residing in the premises and evidently mention the date of the rental time that contains the tenure of occupancy. Precise dates from which date to which the lease of the agreement would be effective have to be mentioned here. Some agreements also go an extra step and mention the mutual duties of all the occupants towards each other and the landlord too. The more comprehensive a rental agreement is the better probabilities of decreasing liability of the parties and also having a rock-solid legal support.

Objective for Making 11-Month Agreement

In case the rental agreement is commenced for a time-frame of a year (12 months) or more, it needs to be registered. Therefore to avoid the lengthy process of registering the contract, many people enter into 11 months agreements which are the cusp between having the agreement documented and having a manuscript that is recognized by the law.
Thus in order to evade any issues such as denial to evacuate the house when asked or violating the signed rules and regulation, rent agreement is a very vital deed. All you need to do is to stopover the property registrar office, pay the stamp duty on the term of the lease and register the lease.

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