Rental Agreement in Hyderabad

Introduction

Home to beautiful sculptures, the state of Telangana is known for its rich culture. In recent years, especially with the boom in the IT industry, Many MNCs have come to Hyderabad, and other prominent cities like Warangal, Medak, etc. This led many to migrate to the city for jobs. And the chances are high. Hence, thereg to huge demand for rental properties.

Table of Contents

• Procedure To Make Rental Agreement in Hyderabad
• Preparing the Rental Agreement
• What is Stamp Duty
• Entering the Tenancy Agreement
• Important Clauses to Be Included in the Tenancy Agreement

Procedure To Make Rental Agreement in Hyderabad

• Negotiate the terms with the landlord and tenant and draft a strict tenancy agreement.
• Print the revised draft on recommended-value stamp paper.
• Place the landlord’s and tenant’s signatures in the designated spaces, along with the signatures of two witnesses.
• Register the deed at the local sub-registrar’s office.

Preparing the Rental Agreement

The first step in preparing a tenancy agreement is to discuss the terms that need to be included. Both the landlord and the tenant should negotiate the terms. A contract can decide what happens. After finalizing the terms, a deed is drawn up. Review by both parties. Remember that some crucial terms like monthly rent, deposit, lock-in period, and maintenance charges should not be overlooked.

The next step involves purchasing stamp paper of the recommended value and printing the prepared draft on it. The tenant and the landlord must affix their signatures at the places designated in the agreement in the presence of two witnesses who must also sign the deed. After that, the contract will be registered in the local sub-registrar’s office.

What is Stamp Duty?

Stamp Duty is a tax levied to make legal documents legally valid. The stamp duty recommended by the government in Telangana and Andhra Pradesh is as follows:

Entering the Tenancy Agreement

Registering a document means backing up the content of the agreement with the authorized officer/office. This is a method to prevent fraud. Ensures that the contract is signed by the parties involved in it. Reasons why registering a document is very important.

• It prevents forgeries and fraudulent activities
• It proves that the document was signed by the parties mentioned in it and not by random people.
• Property matters are exposed. By exposing disputes and cases over the property.

Telangana and Andhra Pradesh charge a registration charge of 5% for tenancy agreements. While appearing for the registration of the tenancy agreement, both the tenant and the landlord have to submit documents proving their identity, title of ownership (landlord), passport-size photos, etc.

Important Clauses to Be Included in the Tenancy Agreement

Don’t skip some important terms in your tenancy agreement. If this happens, disagreements between the two parties may lead to legal battles. That’s why everyone says that even if the parties involved in a tenancy agreement are intimate, there should always be one.

Here are some rules that should never be ignored:

• Rent, maintenance charges, and security deposit charges for each should be clearly stated in the contract to prevent breach of contract.
• Pets: Landlords who cannot entertain animals on their property must make this clear to the tenant through the agreement.
• Penalty for late payments: In most cases, landlords can impose penalties for late rent payments. Details of such penalties should be mentioned in the deed.
• Cleaning and painting: If the landlord cleans and paints the property in question before the tenant moves in, the charges for this can be deducted from the deposit paid by the tenant. So the deed should clearly state that painting and cleaning charges are exempt from the security deposit.
• Lock-in period: It refers to the minimum period during which either party cannot terminate the deed. Specify the duration of the lock-in period in the contract
• Consequences of overstay: If the tenant refuses to vacate the property even after the end of the contract, the landlord can penalize it. Such a penalty should be detailed in the deed.
• Dietary habits: A landlord must specify his rules for dietary habits to be observed on his property.

Conclusion

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Also Read: Stamp Duty on The Rental Agreement in India