Rent Agreement vs Lease & License: To avoid disputes, get the landlord to prepare this document instead of a rent agreement.
In metropolitan cities, you often hear reports of disputes between landlords and tenants. These days, many people buy property with the intention of renting it out and making it a source of regular income. If the landlord lives in another city, the chances of a dispute over the property increase.
Secondly, most landlords feel that entering into a rental agreement secures their ownership rights over the property and the tenants will not be able to raise any disputes. However, we would like to tell you that to avoid any such disputes, you should get another document instead of a rental agreement, which will further secure your ownership rights.
Actually, we are talking about ‘Lease and License’. This document is capable of completely protecting the interests of a landlord. Many people in cities have started making such documents. There are such provisions in this document that the tenant does not get a chance to establish any kind of right on the property.
It is not that it is a difficult task to make. This paper is also easily prepared like a rental agreement or tenancy deed. Property affairs expert Pradeep Mishra has explained the complete method of making it.
What is different from a rental agreement?
Pradeep Mishra says that although this paper is also like a rental agreement, some clauses have been changed in it. A rental agreement is mostly made for residential areas or properties. Its duration is only 11 months. Talking about a lease agreement, it can be made for a period of more than 12 months.
This paper is used for both residential and commercial properties, while its term can range from 10 days to 10 years. You can get this document prepared by a notary on stamp paper only. However, if you want to enter into a lease agreement for a period of more than 10 or 12 years, it will also have to be registered with the court.
The landlord’s interest is protected
Whether you enter into a lease agreement or a lease and license, both these documents are only for the protection of the landlord’s interests. It is clearly written in it that the property is being given to a specific tenant for residential or commercial use, the period of which can be from 10 days to 10 years. In a lease and license, the landlord is clearly listed as the ‘licensor’ and the tenant as the ‘licensee’.
Why is a lease and license better?
- Leases and licenses can be made for periods ranging from 10 days to 10 years.
- It is clearly stated that the tenant will not claim or demand any right over the property in any way.
- In the event of the death of either party to the lease, his heirs can continue it. This does not happen in a rental agreement.
- Even if the tenant takes possession of the property, he will not have any legal rights
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