Concept of Rent Regulation:

In simple words “Rent” is used as a part of produce. Which is paid to the owner of the land for the use of his property, goods or services. Rent is a return made by a tenant or occupant of real property to the owner for possession. And use thereof especially a sum of money agreed upon between a landlord and a tenant for the use of real property. Hence, it is the income from the ownership of land, property or other free gifts of nature.

Following can be pointed out as the differences between lease and rent regulation:

Following can be considered as various types of rents regulation:

1. Economic rent:

It refers to the payment made for the use of land along. But in economics the term rent is used in the sense of economic rent itself.

2. Gross rent:

is the rent which is paid for the services of land the capital invested on a particular property.

3. Scarcity rent:

This type of rent refers to the price paid for the use of homogeneous land, when its supply is limited in relation to demand. If whole land is homogeneous but demand for land exceeds its supplied the entire land will earn economic rent by virtue of its “scarcity”.

4. Differential rent:

refers to the rent which arises due to the differences in the fertility of land. T he surplus which arises due to the difference in fertility and productivity of the land is called differential rent of the land.

5. Contract rent:

Contract rent refers to that rent which is agreed upon between the land owner and the user of the land on the basis of the contract which may be verbal or written contract. Such contract rent may be more or less then the economic rent.

A Rental Agreement document

The amount of rent decided by the parties and mode of payment; cash, cheque or demand draft is usually used. Also, the document must include the duration for which the rent has to be paid. Paying guest, serviced apartments and other short-term accommodation require payment on the daily or weekly basis. While long terms payments are paid monthly.

Essential utilities

Essential utilities and their connections such as; gas, electricity, phone, television, internet, and water must be included in the rental agreement. Also, include if the rates for the same are included in the rent or paid separately.

Sometimes a landlord may choose to add lifestyle restrictions. This is very common in South India where most rental accommodations restrict its tenants from the preparation of non-vegetarian food in the premises. Other restrictions, such as’ marital status, gender are also considered.

• The consistency of license fee to be paid in the entire period
• Clarity of costs associated, such as; municipal taxes, society fees, and other charges.
• Return of deposits when the lease is terminated.
• Clauses defining what happens in case the expectation is not met.

You can create a rental agreement by using our easy and error-free rent agreement format in the following scenarios:

• While letting out or renting a house, apartment or commercial space for rent.
• To have a formal written agreement with your landlord or tenant.
• document & enforce general and specific clauses
• register the agreement with local authorities

The important points to be covered in a rental agreement are as below:

• Rent and Deposit
• Maintenance, Electricity and Water Charges
• Damages, Repairs and Alterations
• Tenant’s Responsibilities
• Owner’s Responsibilities
• Lease Termination & Extension
• Miscellaneous Clauses