Are you wondering if a house rental agreement is what you need? Here are all the details about house rental agreements, along with the cases in which you should use them.
What Is a House Rental Agreement?
A house rental agreement is a written document between a tenant and a landlord, which allows the tenant to live in the landlord’s residential property in exchange for paying a monthly compensation called rent.
A rental agreement lays down all the obligations of the tenant as well as the landlord. Further, these agreements have the provision of termination by both- the renter as well as the rentee.
Why Do You Need a House Rental Agreement?
There are many factors which call for the need of a house rental agreement.
Firstly, a house rental agreement is a legal proof that the tenant is occupying the landlord’s property in exchange for rent. The person who is renting can use the rent agreement to show the proof of address wherever it is needed.
The house rent agreement can also be used by the tenant for income tax-related purposes. In many tax constituencies, the rent is deductible from the income when calculating the tax.
A house rent agreement is also needed by the landlord to provide rent as proof of the income. Further, a house rental agreement can provide the resolution to any party, be it the landlord or the tenant, failing in its obligations in any way.
A house rent agreement also states the terms in which the landlord is giving their property for rent to the tenant. It states what will happen if the landlord or the tenant breaches the agreement. This assures safety to both- the landlord and the tenant.
Lastly, a house rent agreement can also make sure that the landlord is providing good housing standard services to the tenant for the duration of the tenancy.
Is House Rent Agreement Same as Lease Agreement?
No, there is a considerable difference between a house rent agreement and a house lease agreement. Both these agreements are based on a tenant occupying a residential property of the landlord in exchange for compensation.
However, in the case of a house rent agreement, the terms are on a monthly basis. The contract can be ended at any time immediately.
In case of a lease agreement, there is generally a duration of time (commonly 11 months) and the agreement cannot be ended before that without penalties for breaching it.
What Is Included in a House Rental Agreement?
A house rental agreement mainly comprises of three important sections:
- Name of the tenant and the landlord
- Length of the tenancy
- Amount of rent
Besides these sections, other parts can also be added to a house rental agreement.
Commonly added sections include details of the security deposit, rules of the house, and a notice period if the agreement allows being terminated earlier than the stated tenancy period.
What Happens If the Landlord or Tenant Breaches the House Rental Agreement?
In case the landlord or the tenant fails to commit to the terms of the house rental agreement, the victim can take the case to the court and claim for losses. If the tenant breaches the house rental agreement, the landlord can even keep their security deposit.
This is why it becomes important to make sure that the terms of the house rental agreement are very clear. Further, before signing the contract, both parties should read the agreement very carefully to make sure that there is no confusion.
Further, a house rental agreement is admissible in court only if it is written well and compliant from a legal point of view. This makes it even more important to get the proper template for house rental agreement.
Generally, the house rental agreement work on a month to month basis. Therefore, it is not difficult to end a house rental agreement as compared to long term agreements like the lease agreements.
Should I Use a House Rental Agreement Template?
Since a house rental agreement is valid in court only if it is well written and legally compliant, it is important to make sure that you are following the proper template. Therefore, using a house rental agreement template from the proper sources is essential.
Our website provides these templates to customize for your preference. Any terms that you want in your house rental template can be included by our experts.
Now that you know all about what a house rental agreement is, you should get the right template from CocoSign right away. You can find different types of agreement here as well.
House Rental Agreement FAQ
Can a landlord change my house rental agreement terms after I sign it?
No, the terms of a house rental agreement cannot be changed unless both parties agree to the new terms. Therefore, the landlord cannot change the terms of the agreement by themselves.
How long does a house rental agreement generally last?
A house rental agreement is based on a month to month basis. Therefore, these last for generally a month and can be ended by either party.
Can I write my own house rental agreement?
No, that is not really a good idea. A house rental agreement holds in court only if it is legally compliant. Therefore, it is better to use a proper template, like the one that we offer you.
Do I need to get the online house rental agreement template checked by a lawyer?
Our house rental agreement templates are written by legal experts on top of their fields. Therefore, there is no need to get the rental agreement cross-checked. If there is anything that you want to be added or removed in the agreement, we can do it for you.
Can a house rental agreement help in the tax rebate?
Yes, a tenant can provide a house rental agreement as proof of expenses and claim a rebate on their income tax based on it.