MBA India

Lease Contracts


 

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The main procedure when it comes to lease agreements is quite standard:

  • The landlord gives you a draft of the lease agreement so you can check for details and decide if you are okay with such agreement before you sign it.


  • In case you donīt feel comfortable enough with the landlord making the first draft of the agreement you can offer yourself to make it and then send it to your landlord so he makes whatever changes he finds convenient. Good thing about this is that: by defining the basic idea of the agreement you can make sure there are no hidden terms/conditions.


  • Get to know your landlord, remember that he/she is the one you will talk to about things that need to be fixed in the house, the one that will keep your deposit until the day you leave, keep a copy of your keys in case you donīt change the locks and someone who has the potential to help you out whenever you need it or to become an annoying character in your everyday life. Try to make the agreement through a real state agency, so you know the relationship will always be a business-forwarded, professional one.


  • Remember to make a precise, accurate list of all defects in the house. Itīs okay to be excited about your new home but you need to keep a serious attitude and remember that you will be responsible for all damages not reported in the house and the money for repairs will be taken from your deposit. Take the time to walk around the house, for about 15 minutes, and make a list to be handed and signed by the landlord.


  • Yes, it is true that longer is better when it comes to a lease agreement, especially when you like the house and your landlord is friendly and serious. But keep in mind that people change and needs change as well. What seems to be appropriate now may change within a year, so it may be better to sign a short-term contract with the option of renewing before the contract expires.


  • You may leave the place before the contract has expired, and landlords will want you to pay in full for that month, so make sure the contract mentions you get to keep the apartment or designate it to another tenant until the end of the month, regardless of your moving out.


  • There is a term called the "Agreed Compensation Term", which means that in case something in the contract is not fulfilled he/she gets money compensation. Make sure the compensation is low: otherwise you should not sign such contract. This is important since the more money is involved the more tempted landlords may be to start problems out of small details and small damages in the house.


  • A security deposit is what the landlord relies on in case you do not agree to pay for the damages or in case you do not fulfill the contract. In case the landlord does not refund the deposit, or only refunds part of it, you will be put in a hard position since you will have to take the time and waste energies getting the money back. Most people give up at some point. It is true that the deposit has to be given, but there is no standard amount of money to deposit, therefore the amount will be agreed based on location, and the property. Ask locals for a deposit average depending on the area where you are planning to live.
    It is a safe option to give the landlord a security check rather than transfer money to his/her bank account.


  • Keep in mind that you are to receive the property in good conditions, and at the moment you leave you will have to repair all damages. Make sure the landlord does all the necessary maintenance, including furniture and appliance. Make sure the contract stipulates you are not responsible for natural wear by normal usage.


  • In case you receive something that is not in good conditions the contract must specify you are not responsible of repairing such defects.


  • How you pay (e.g.: month in advance) changes depending on your location, ask locals what the standard in the place you are planning to live is.




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