Rental Agreement Formats
There are primarily 2 types of rental agreement formats - Leave & License and Lease agreement formats. Both are explained below.
Leave & License Agreement:
A leave & license agreement is becoming very popular in recent times, as it has the following advantages:
At PropertyAngel, we use only Leave & License Agreements. A sample is below:
- A lease, or Rental agreement causes transfer of interest from the owner to tenant, or lessor to lessee, and is governed by the Rent Control Act. Thus, the rent control court has to be approached in the event of a dispute.
- Amenities provided to the tenant cannot be disrupted even if the tenant does not pay rent. The Rent Control Act is considered to be strongly in favour of the tenants. It limits the power of the landlord to reclaim the property.
- Implies that the owner has given his rights to enjoy his property to the tenant for a certain period of time, and the tenant can enjoy the said property without interference.
- Interests of the property are transferred to the tenant. The tenant can defend his rights over the property as his own because transfer of interest has taken place.
- The agreement comes to an end based on the terms and conditions of the contract only.
- A lease is both transferable and inheritable since the interest lies with the tenant.
- A lease is unaffected by the sale of the property to the third party as the third party cannot claim rights till the agreement comes to end.
- Since there is transfer of interest along with property, if the tenant occupies the said property longer than mutually accepted time, it isn’t deemed to be unlawful on part of the tenant.
For the reasons above, we do not use the Lease Agreement format at PropertyAngel. All our agreements are Leave and License agreements for a duration of 11 months, which can be renewed for a further duration of 11 months.
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