Tenancy agreements: Meaning, types and legal protection

For tenants and landlords, a tenancy agreement is an essential element that needs to be carefully understood and agreed upon. This agreement represents a legal bond between landlord and tenant. Through this arrangement, the tenant receives permission from the landlord to occupy and utilise a specific property for an agreed duration. Typically, in return, tenants pay a certain sum.

Both parties hold specific rights that this agreement highlights. It outlines the duration for which the property remains rented and details like rent amount, payment method, and property maintenance expectations.

Discussed below are insights that will help you grasp the tenancy agreement meaning in detail, types, and legal rights involved.

Types of tenancy agreements

The most common types of tenancy agreements include:

Rent agreement

A rent agreement establishes terms between a landlord and a tenant for a short duration. Typically spanning a few months, it requires renewal once the term concludes. It specifies rent amount, due date, and maintenance responsibilities. This agreement tends to be flexible and caters mostly to people who don't plan on long stays, such as students or professionals on temporary assignments.

Lessee

A lessee is someone who gets a lease by the landlord. When a lessee signs a lease, they agree to specific terms like rent amount, lease duration, and other conditions. This lease contract clearly states what the lessee can and can't do while living in the property. Both parties benefit here, the lessee gets a place to live, and the landlord earns rental income.

Licensee

A licensee gets permission from a landlord to use a property for a short time. Unlike a lessee, a licensee doesn't sign a lease and has fewer rights. This arrangement often suits temporary needs like a pop-up shop or a short-term project. In this setup, the landlord keeps greater control over the property while the licensee gains the temporary space they need.

Legal rights in tenancy agreements

For tenants

● Right to privacy: Every tenant deserves a space free from unwarranted intrusions. Landlords must respect this boundary and not invade a tenant's space without valid reasons or prior notice.

● Tenants' heirs: On a tenant's demise, heirs have a right to continue residing in the rented property. They step into the tenant's shoes and acquire similar rights. This means they can continue living in the rented property under the terms and conditions outlined in the original lease agreement.

● Unfair eviction: Landlords cannot evict tenants without genuine cause. Tenants have protection against arbitrary eviction, ensuring their stay remains secure. Make sure to understand the lease agreement meaning to ensure your rights are protected and you are well-informed.

Rent agreement adherence: Any increase in rent should align with what the parties have agreed upon in their rent agreement. Random hikes without justification are not permissible.

For landlords

● Possession for repairs: Landlords reserve a right to reclaim their property for essential repairs (with prior notice). Once done, the tenant can return and continue the lease.

● Rent collection: Collecting rent in a timely manner stands fundamental. If tenants fail to adhere to payment schedules, landlords can take necessary action.

● Property inspection: Periodic property inspections are within a landlord's rights. It allows them to assess property conditions and ascertain any potential damage.

● Eviction on violation: If tenants breach rent agreement terms, landlords have a right to initiate eviction proceedings. Violations can range from non-payment of rent to damage to the property.

● Security deposit deductions: On contract termination, landlords can deduct from the security deposit for any property damage caused by the tenant. The remaining amount then goes back to the tenant.

Don't want to rent a house? Consider housing finance with IDFC FIRST Bank home loans. Benefit from competitive interest rates and numerous property options. Live the life you have imagined. Submit your home loan application online and take advantage of extended repayment periods of up to 30 years. Get permanent property ownership today and avoid rental hassles.

Conclusion

Patta and Chitta establish clear ownership titles for landholders in Tamil Nadu. Applying online and renewing documents periodically is vital for valid legal status. Robust process enables the rightful utilization of property.

Disclaimer

The contents of this article/infographic/picture/video are meant solely for information purposes. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject IDFC FIRST Bank or its affiliates to any licensing or registration requirements. IDFC FIRST Bank shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.