A rental agreement is the legal process by which a property is rented out by an individual to another. Any property whether it is a house, car or furniture is hired by him only with the written permission of the owner which has to be dictated by the court of law. There are identifiable guidelines which have to be maintained while initiating it because the court does not accept or entertain agreement papers which are not formulated by following the format. The structural plan, participants’ specifications and transaction details have to be set according to the coded rules and acts. The document is referred to by parties for a variety of reasons like using it:
- To duplicate a rental agreement for renting another article
- To reproduce it in the court for corroborating the deed in case of misjudgements and
- To constantly remind the buyer of the terms agreed between them
The rental agreements fall in two categories- written and oral. The former is the usually austere type of document that is ceremonially used around us whereas the latter is the more flexible version of it and accommodates changes more openly due to its nature. A written rental agreement should, thus, encode the following constituents in concrete terms so that the process is executed with smoothness and transparency:
- The name of the parties must be there in the document. Spelling mistakes and confusion with the middle name and last name should be kept under check as that would unnecessarily cause legal issues to multiply at the end.
- The immediately next important component is the description of the property being transacted through this. It must contain the name, location or nature, number and quantity of the property to avoid feuds over them afterwards.
- The rental agreements always stand on fixed clauses that can be operationally defined. Those clauses must be conveyed here wrapped in legal terminology. It must be stated clearly in this regard that all clauses are legal and violation of the rules would be counted as strictly punishable offence.
- The financial statements have to be put in the article after mutual reciprocation and approval of the amounts to be paid as rent and the temporal considerations of the payment and rental period.
- Finally the signature of the notaries must be placed in the right place signifying that all terms have been agreed and sanctioned by the parties.