A rental contract is a legal document which is entered between two parties where one of them takes an asset of another party on rent for a fixed period of time and for a fixed amount of money. These types of contracts can be made for renting various assets like, house, office, car, hardware, equipment and others. The parties in these types of contracts include the owner of the asset who is known as the Landlord [in case of property renting]/ Owner and the person who takes these assets on rent who is known as the Tenant. In case of any dispute between the parties, these contracts act as legal evidence. Various factors which need to be considered while drafting a rental contract are as follows:
Points to be considered while preparing a rental contract:
- The rental contract should cover list of all the services, appliances, equipment and facilities provided by the owner to the tenant.
- The date for paying each month’s rent and other specifications, like percentage that should be paid by tenant in case of repair, and any wear and tear in the rented facility should also be mentioned in the contract.
- Duration of notice period that should be served before unscheduled termination of contract should be mentioned.
- The contract should mention the complete details including the name, contact details and address of the owner as well as the tenant.
- The rights and responsibilities of both the parties of the rental contract is an essential requirement. Henceforth the compliance to the rental contract would be guided under the written clauses in the rental contract agreement.
- The terms on which the contract can be terminated should also be mentioned.
- If any special care or requirement is needed by either of the parties, their details should be provided in the contract.