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Everything You Need to Know About Rental Properties and Landlord and Tenant Responsibilities

Both landlords and tenants have roles to play in rental properties. Each key player will have distinct roles to play that they must know a great deal about before renting a property or choosing to manage a rental property. Whether you are the landlord or you are the tenant, you should have a clear understanding about your rights and what responsibilities are required of you from these rental properties. This ensures that both parties will have a pleasant and peaceful experience in renting properties.

Before knowing more about both landlord and tenant responsibilities, you have to first understand the basics of rental properties. Now, if a person will rent a residential property, you refer to him or her as a tenant. Before signing a deal to rent the property, the lease agreement should state all the rights and responsibilities of both the tenant as well as the landlord. To prevent any misunderstandings, legal disputes, and confusion, both parties should be well aware of these facts and what are expected from them.

There are usually two type of tenancy agreement contracts. You have the lease agreement and you also have the lease and license agreement. The former agreement allows the tenant to have ownership of the property at a period of time that is not specifically stated. This can cause legal disputes that must be settled in court of the tenant does not want to move out of the property. The latter agreement, however, is much more recommended since it has a conditional ownership agreement for a particular period of time. You are also given the option to renew your rent where there will then be other changes to your stay and rent.

When it comes to landlords, they will then come up with a rental amount that must meet the formula set by their local governing bodies. This differs per country and per location. Nonetheless, most annual rents are computed based on a percentage of the expenses paid for the construction of the property and the current market price of the land. The both of these costs also depend on the historical value of the property. This means that old properties have smaller rental fees while new properties have bigger rental fees that will benefit the landlord more. An increase in rental fee is also expected when the property is renovated.

A responsible tenant should be able to pay their rent and other associated rental bills as per the agreed terms of their contract. If the tenant is not able to meet their payments on time, they may pay an interest rate for the delays. Most interest rates are calculated based on the due rent date and the date it was paid off.

On the part of the landlord, they should be able to provide a rent receipt to the tenant to serve as proof that the payment was made. If the landlord fails to provide this receipt, the tenant has the right to complain to the consumer court. When such a situation happens, authorities will listen to both sides where the landlord must then provide compensation to the tenant accordingly. However, the tenant must meet certain requirements for filing complaints against their landlords. For instance, they can only file a complaint within two months from the payment was made.