Important things to include in your rental agreement Chennai
Remember that before creating the rental agreement online in Chennai, it is very important to add some necessary clauses in the agreement. Some important clauses that should be included in the rental or lease deed are given below:
Vital Clauses to Include In Your Rental Agreement for Chennai
Rent and other Maintenance charges– Charges for each must be spelled out in the contract to prevent both parties from breaching the contract.
The penalty for late payments– In most cases, landlords are free to levy a fine on delayed rent payments. Details about such penalties must be clearly stated in the deed.
Cleaning and painting– If Landlord cleans and paints the property under discussion before the Tenant moves in, the charges for the same can be deducted from the deposit paid by the Tenant. So the deed must clearly state that costs for painting and cleaning will be cut from the security deposit.
Lock in the period– This refers to the minimum duration for which both parties cannot terminate the deed. Mention the length of the lock-in period in the contract
Food habits of the tenants– Landlord must mention his rules on food habits like veg/ non- veg, etc. that can be practiced on the rented property.
Things to Keep In Mind for Landlords While Renting in Chennai
Finding a proper place to rent in a big city like Chennai is a tiresome, energy and time-consuming task. In the city of Chennai, the rent and lease are controlled by The Madras Rent Control Act, 1958. Before taking the house or flat on rent make sure of these following details below:
- Whether you are directly dealing with the owner or any third party impersonating as the owner.
- Whether there is an agent or broker to whom you need to pay any brokerage or commission charges. Usually, the brokerage or commission is half or full one month rent.
- Verify whether the property belongs to the person who claims to be the owner. For this, you can check the Electricity or Tax bill.
- In case you pay any token advance to make sure the owner gives you a receipt. Or make it through cheque, DD or online transfer.
- Talk all terms and conditions initially itself.
- There should be a clear written agreement including the important terms and conditions between the owner and tenant.
- The agreement should be printed on a Stamp paper of due Government values.
- Owner and Tenant should sign the agreement
- Register the agreement in the Sub-Registrar office by paying the registration charges whatever be the term of the agreement. A registered agreement is always safe and legally valid.
- Tenant verification at a local police station is compulsory for landlords in Delhi. The Landlord has to provide the details of the tenant to the police, and the tenant also has to co-operate in this regard. Failure to do so is punishable under the law.
- Security Deposit – In Chennai, the usual trend is to collect 2 to 3 months’ worth of rent as a security deposit. This deposit is to be refunded by the owner to the tenant at the time of the tenant vacating the premises. No interest is paid on deposit amount.
- Token Advance – At the time of blocking the house for rent, the tenant sometimes pays a small token advance to the owner, to prevent the owner from entertaining other potential tenants
Types of Rental Agreements Commonly Used in Chennai
11-month Rental Agreement
- In Chennai, the typical duration for rentals is 11 months with provision to renew at the end of the 11th month.
- The tenant has to pay a monthly rent. In addition to that, the electricity and water charges are also to be paid.
- Maintenance charges are also to be paid for cleaning common amenities and maintaining the premises.
Long Term Lease Agreement
Another favorite mode of renting in Chennai is on a long-term lease for a certain number of years. There is no monthly rent payable by the tenant. At the end of the term of the lease, the owner has to return the lease amount to the tenant. Electricity, water, and maintenance charges have to be paid regularly by the tenant. There is no interest paid on the lease amount.
Commercial Rental Lease
- The procedure of registration and Stamp Duty is the same as residential properties for renting of the Commercial properties also.
- The procedure for registering a commercial lease and the Stamp Duty associated with it are similar to that for rental agreements.
Flat Rental Agreement
The flat rental agreement is used when someone wishes to rent out a single unit in an apartment complex, not the whole property. Such rental agreements have to be drafted with care, with clauses for access rights to common amenities and the rules of the residents association.
House Rental Agreement
A house rental agreement, a well-drafted one at that, should be in place before any house rental commence.
Commercial Office Agreement
Any individual, business owner or company wishing to take up a property to use as an office can make use of a commercial office lease can rent them using this type of rental agreement in Delhi
Room Rental Agreement
Room agreement is much like the standard rental agreement, but it has slight differences as some facts are different as the landlord only rents a room in the property.
Frequently Asked Questions (FAQs)
What happens if I rent without an agreement in Chennai?
Yes, highly recommended to draft a rent agreement before renting out. Failure to have a rent agreement signed by both the parties will lead to legal inefficiencies in the case of a dispute between the landlord and the tenant.
What do you mean by stamp duty denomination?
Stamp duty is a tax, similar to income tax, collected by the government of Tamil Nadu... Delay in the payment of stamp duty leads to penalty charges. Stamp duty paid instrument/document is considered a proper and legal instrument/document and has evidentiary value and is admitted as evidence in courts. A rental agreement draft should be printed on a stamp paper of a suitable stamp value according to the Stamp Act of each State to make it legally valid.
Why is a rental agreement only for 11 months?
It is a convention that is being followed by landowners to seal rental/lease agreements only for 11 months to avoid registration of the agreement with the competent local authorities. Earlier rental agreements were required to be registered just if the tenure was more than 11 months but now according to the new Rental Control Act, it is mandatory to register a rental agreement to make it valid. Hence, a landlord is under an obligation to get the rent agreement registered for 11 months only.
Can a landlord visit his property without the tenant’s permission during the term?
A landlord can't visit the property without the permission of the tenant. With prior notice, inspection of the property by the landlord is allowed. It is essential to include this clause in the rental agreement. A landlord needs to give prior notice to the tenant before visiting.
Is it an obligation to pay the maintenance charges when you rent an apartment?
Yes, these charges are generally incurred for the maintenance of common facilities like clubhouse, swimming pool, etc. that are provided by the apartment.
Is it mandatory to notarize a rent agreement in Chennai?
No, it's not mandatory to notarize a rent agreement in Chennai.
What are the consequences Of Not Registering rental agreement in Chennai?
Registering rental agreement in Chennai is very essential to be on the safer side as unregistered rental drafts cannot act as a shred of evidence in Courts.
How does NotaryKart simplify the documentation of my Rent agreement in Chennai?
NotaryKart facilitates easier documentation of Rent agreements online in Chennai by providing customizable templates and arranging for the registration and the delivery of the document to your doorstep.
How does the process at NotaryKart exactly work?
- The user customizes by clicking on the ‘Make Rental agreement in Chennai’ Template and entering all the requisite details.
- The user enters the denomination of stamp paper required.
- The user mentions the delivery contact details and makes a successful payment
- Finally, NotaryKart gets the document printed on the stamp paper of denomination requested, completes the documentation as per template chosen and delivers it to your doorstep.