The Importance of Having a Tenancy Agreement

This gives people greater privacy, more freedom, and better chances of socialising. In fact, it may be noted here that tenancy is rising as a practice in all the developing countries as well, as the generation becomes more and more mobile. Like everything else in the market, the price is also rising with the increase in demand. So rents are on a steady climb wherever there is development taking place, brining in other people from other areas in its wake. Most importantly, this migration is increasing internationally too, and no one in their right minds wants to buy another house the moment they land on a foreign shore, nor will they be allowed to do so.

Given the rising tide of rented homes, a tenancy agreement has become more important now than it was before. This is, as the name suggests, an agreement between the tenant and landlord as to the terms and conditions of the tenancy.

Why is it Important to Have it?

There are several reasons that may be given in favour of tenancy agreements.

Given the high rentals, it is more likely than ever before to have a disagreement later on. So it is best to clarify matters right at the onset.
The practice of taking a lump sum of money as security deposit has become a common norm now. Since this is quite a bit of money, one should make sure it is legally bound somehow.
There might be conflicts over any other matter ranging from water tax to who actually owns the sofa. These details need to be recorded somewhere before the tenant moves in.
Looking more to the positive side of things, the tenant is usually someone new to the city or region. The tenancy agreement is a very good address and identity proof for the newcomer. He or she will need it to open a bank account, show it while taking up a job or joining a study course, and in case of any other such needs.

What Should One Contain?

Any agreement is drawn keeping certain rights and duties in mind. In this case, the agreement shall state all details that will hold the tenant responsible for the following:

Paying the rent on time and rendering the correct amount
Repairing any damages done to existing property
Keeping the house clean and healthy
Agreeing to pay the bills, if that is decided
Maintaining a basic security as in locking doors, having a bell etc.
Returning the property as it was when it is time to leave
Give the agreed amount of security deposit when the landlord demands it
Informing the landlord of any decision to end the tenancy within the agreed notice period required by the landlord.
The responsibility of any guest who visits the tenant belongs to the tenant
Whether the tenant may share the apartment with any other person or persons. In that case, what is to be done about the payment? All of them should hand over all keys of the property before leaving it for another place.
Whether pets are allowed or not

What could Happen if One Does Not Have it?

In the absence of a tenancy agreement, a lot of very unfortunate things can happen.

The tenant may refuse to pay rent on time, or create problems over the deposit amount.
The landlord may suddenly hike the rent without warning. He or she may even refuse to part with the caution money.
There may be disputes over who will pay which bill/tax and why.
There can be problems over who owned which piece of furniture.
In case of any serious security problems concerning the activities of either party, the police would need to have a proof of the tenancy.

The Uses of the Agreement

Both the landlord and the tenant are entitled to use the tenancy agreement to serve any of the purposes mentioned above and resolve any conflicts.

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