Benefits of leave and license agreement

Are you a homeowner? Do you rent your property? If so, then you should sign a leave and license agreement with the tenants.

What is a leave and license agreement?

Leave and license agreement is an agreement that ascertains that the homeowner is temporarily allowing the tenant to use his property for some span of time for residential or business purpose. The agreement lays down all the terms and conditions including agreed rent and other property-related aspects. It is registered before sub-registrar. The agreement is usually done for a time period of 11 months and it can be renewed if both the parties agree.

Benefits of leave and license agreement

There are innumerable benefits of leave and license agreement, both for the tenant and homeowner. Let’s have a look at some of these:

1. Mentions conditions

Leave and license agreement contains all the conditions discussed by the parties before the property is opened for renting. These conditions include rent of the property, the time duration for which the property is rented, detailed information of tenant and homeowner, address of the property to be rented, payables like electricity or water bills, damage or maintenance commitments, the purpose for which the property is taken on rent, etc.

2. Maintains clarity

Leave and license agreement is a way to ensure that both the tenant and homeowner stick to whatever is written in the agreement. No one can deny their commitments. Furthermore, once the agreement is signed by both the parties, the commitments cannot be changed without mutual agreement.

3. Provides security

Owning a property is not easy in today’s time due to the high prices of properties. Leave and license agreement ensures the safety of property in case of any dispute among both the parties. The owners can easily reclaim their property. For tenants, this agreement provides the right to stay in the property for a committed period of time.

4. Enforceable

When a document is registered, it is considered valid and enforceable. In case of any issue among the parties, the rent agreement can be enforced with the help of police. The registered agreement is acceptable when presented in the court.

5. Legal proof

If the owner or the tenants need to prove any dispute in the court, they must have the registered leave and license agreement with all the terms and conditions mentioned in it. For example, if the tenant refuses to pay the rent on time, then the owner can use this document to take legal action against the tenant.

6. Address proof

Address proof is required in all the departments. Whether one has to open a bank account or have to book tickets, every big and small activity require address proof. But, tenants don’t have their own houses. So, they usually face issues related to address proof. However, tenants can use leave and license agreement as their legal address proof.

Clearly, leave and license agreement is beneficial for both the tenants and homeowners. But, people refrain from it as they find the process of leave agreement registration as complicated. However, with Renteement, the whole process of registration is simplified. We take care of the entire rent agreement registration process ranging from biometric verification, police verification to final delivery of the agreement at your doorsteps. So if you are looking for hassle-free online leave and license Pune or any other city, then contact us right away.