Once the owner and the tenant come to a mutual decision, they have to sign an important piece of agreement, which is known as the Tenancy Contract. The Tenancy Contract is the pact signed by both parties, one being the tenant and the other being the owner of the property. This document allows the tenant to stay at the property of the owner and gives the owner the right to receive the payment for letting the tenant to reside at his property.
The Tenancy Agreement is simply for the facility of both the groups, so that no clashes or issues arise after the property is rented. It can be both in written or oral form. However, the oral agreement can cause problems afterwards, as there is no evidence of it. Hence, the written contract should always be preferred to have a written record and proof of the whole agreement. The written agreement makes it easy for you to gain your rights by approaching law, if such a requirement is arisen.
The contract for the tenancy should follow certain guidelines. It should be designed as per the rules imposed in a country. It will not be any good if it does not focus on all the legal formalities. Both parties are eligible for certain benefits, if they design the agreement as per the law of the country and are accountable as well in case of violation.
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 agreed rental amount should be clearly mentioned in the agreement, which will be paid by the tenant along with the due date for each month. A written declaration by the owner should be mentioned in the tenancy agreement stating the agreed amount of the deposit, both in words and numbers, which will be kept by him until the time the tenant resides there.
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.
Other important details and points, such as the tenant being responsible for paying all utility bills on time, paying for the reconnection of any certain facility, if it is disconnected etc. are must to be mentioned in the agreement. The agreement will also contain the point stating the tenant’s duty to maintain the house in a good condition and not using it for any illegal purposes. Another point will be stated about the owner of the property to be responsible for paying all the refurbishment and repairing charges, the property’s insurance and the taxes.
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.
