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 contract contains details concerning the property being rented, the owner of the property, the person renting the property, the time agreed for renting the property, the amount of money that will be paid for renting the property for the specified time and other details relevant in the contract.
The rental agreements are necessary when renting any property like land, real estate, cars, storage rooms and other property and for any reason like car parking, to farm, to conduct business in, to live in and other reasons. Most rental contracts demand that a tenant give a deposit which is a specified amount of money that will be given back to the tenant at the end of the contract if the premises are in good state. 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.
A month to month rental agreement is a contract for renting premises on a monthly payment basis and no specific time of tenancy is given but rather the contract can be terminated when one party decides to vacate and gives a notice to the other party at a convenient time usually before the due date of rent payment telling them of their intentions to terminate the contract. Tenants can agree with landlords that they have to rent the property for a given minimum number of months before they can vacate and in so doing the tenant may be charged a fee or leave their deposit to the landlord if they vacate before the set period has passed. Fixed term rental agreements are used when a tenant rents a property from the owner for a specified length of time and restricts the landlord from changing the rent payable and other terms for that period of time and also expects the tenant to obey the agreements.
When signing agreements for renting or leasing property tenants should consider some factors like the terms of the contract and ensure they understand all the rules to avoid being charged for breaking the rules or facing action when they are not in line with the requirements. It is also vital to ensure that a property owner has proof of ownership and met the rules set by authorities like having insurance covers for the property to avoid inconveniences like renting property belonging to other people or being taken advantage of.