Contracts written to specify the conditions expected from property owners and those intending to rent the property for a short period of time are called rental agreements. The terms and conditions for rental agreements are regulated by an authority called contract act which ensures that the conditions are in accordance with the requirements laid down by law. The property owner, the lessee, the time specified for renting the property and amount of money to be paid for that time and other factors involved in a rental agreement are specified and documented in the contract.
Rental agreements can be used for real estate renting, renting residential houses, parking spaces for parking vehicles, renting places to store goods, for renting places and property to conduct business in, renting property for agricultural purposes, renting to the government, renting property to institutions and for many more reasons. Landlords demand for a deposit that is returned to the tenant upon the expiry of the contract. For leasing property for long periods of time, a lease contract is used instead of rental contract but it includes all information that a rental agreement includes.
Contracts based on a month to month payment of rent are not given a specific amount of time and is renewed each month until one party either tenant or property owner notices the other party of intentions to vacate with a minimum number of days left before renewal date required. In one way rental agreements, the landlord has the right to hold on to the deposit that the tenant had given earlier or charge a fee incase a tenant wishes to terminate the contract before a given number of months they had agreed on has elapsed. Agreements can be issued in scenarios where a tenant specifies the length of time they will rent the property and that expect that all agreed upon conditions stay constant for this period of time and are followed by both tenant and landlord.
All the terms of a rental agreement should be read and understood since one may face consequences like being fined or face legal consequences for not abiding by these rules. Before renting property, tenants must ascertain that the property is owned by the one leasing it to them and also ensure that the rules under the agreement are in accordance to set standards to avoid being overcharged or renting uninsured property and other consequences