Essential Rental Clauses to Know: Advice from Finance Influencer Srishti Gosavi

Are you preparing to rent a property for the first time, or are you about to lease out your own property? Srishti Gosavi, a renowned finance influencer, outlines crucial rental clauses that both landlords and tenants must be aware of to ensure a smooth and dispute-free tenancy. Whether you're a tenant looking to protect your rights or a landlord aiming to safeguard your property, understanding these clauses is vital.

1. Timely Payment of Rent and Utilities

One of the fundamental clauses in any rental agreement is the obligation of the tenant to pay rent and utility charges punctually. This clause should specify the due date for payments and the consequences of late payments, ensuring both parties agree to the terms. Establishing this upfront can prevent misunderstandings and potential legal issues regarding financial obligations.

2. Defined Use of Property

The rental agreement should clearly outline acceptable uses of the property to avoid misuse that could lead to legal troubles with municipal authorities. It's also advisable for landlords to reserve the right to periodically inspect the property, ensuring that the tenant complies with the agreement terms and has not made any unauthorized alterations.

3. Assurance of No Outstanding Dues from Landlord

To protect tenants from inheriting previous liabilities, the rental agreement should include a clause stating that all property charges, including utilities and maintenance prior to the tenancy, have been settled. This clause ensures that the tenant will not be unexpectedly burdened with past dues, which is crucial for financial transparency and trust.

4. Security Deposit and Refund Terms

The terms of the security deposit, including the amount, conditions for deductions, and timeline for its return post-tenancy, should be explicitly mentioned in the agreement. This clarity helps manage both parties' expectations and provides a clear reference point should any disputes arise over the security deposit.

5. Condition and Maintenance of Fittings and Fixtures

Especially in semi-furnished properties, it is essential that the agreement specifies which party is responsible for the maintenance and repair of included fittings and fixtures. Detailing the condition of these items at the time of moving in and establishing who covers the costs of wear and tear can prevent future disagreements.

6. Notification Requirement for Extended Tenant Absences

For security and maintenance reasons, a clause requiring the tenant to notify the landlord about extended absences from the property is advisable. This information allows the landlord to take necessary precautions to maintain the property in the tenant's absence and ensure compliance with insurance or security requirements.

7. Importance of Conducting Background Checks

While not a clause, Srishti Gosavi strongly advises both landlords and tenants to conduct thorough background checks on each other. Ensuring that neither party has a criminal record or a history of involvement in problematic behaviours can prevent future complications and enhance safety for all parties involved.

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By incorporating these essential clauses into your rental agreements, both landlords and tenants can create a more secure and harmonious leasing arrangement. Srishti Gosavi's expert advice helps demystify the rental process, ensuring that both parties are well-informed and protected throughout the duration of their agreement. Remember, a well-drafted rental agreement is the foundation of a successful landlord-tenant relationship.