If you have ever put a property on rent or have lived in a rented house, you must have signed a rent agreement. Have you ever wondered why most rent agreements are for a duration of 11 months? Often, neither landlords nor tenants and not even the real estate agents know why this is so. Let’s find out.
Also known as a lease agreement, the rent agreement is a written contract between the owner of a property (the landlord) and the tenant who takes it on rent. The agreement specifies the terms and conditions based on which the property is let-out, such as: description of the property (address, type and size), monthly rent, security deposit, purpose for which property can be used (residential or commercial), and duration of the agreement. Its terms and the conditions can be negotiated but after it is signed, it is binding on both the landlord and tenant. It also specifies the conditions under which the agreement can be terminated.