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Benefits Of A Tenancy Agreement

Todays Date: December 13, 2018

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 Tenancy Agreement should be in accordance with the country law. It must privilege you with your statutory rights; otherwise, it becomes ineffective. Through this agreement, both the landlord and the tenant are liable to some privileges, and bound by some errands.

It is very important that the agreement have a clear mention of all the details point wise with the signature of the tenant as well as the owner. The presence of a person providing guarantee, that is a third person, is very vital. He has to assure that all payments and dues are dealt with as per the tenancy agreement. The duration of the tenancy, with starting and ending dates, should be mentioned in the contract.

The payment that the tenant has to submit to the owner, has to be stated in both words, as well as numbers next to the agreed due date for the payments. The owner of the property will then give a written testimonial about the security deposit that he has the right to keep till the tenure of the tenancy. Even the amount of the security deposit has to be in words as well as in numbers.

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.

The tenancy contract will also comprise of minute details such as the responsibility of the tenant to pay off all the bills of the facilities he uses, such as electricity, water, gas, along with the fees of reconnection of any facility (if required), television license fee and others. It should be clearly mentioned in the contract that the tenant is bound to take care of the house and only use it for residential purpose. On the other hand, it should also mention the duty of the owner to pay for all the maintenance and repairs, pay the taxes as well the details of the insurance of the property.

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.

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