A Leave and License Agreement (LLA) is a legal document that outlines the terms and conditions between the owner of a property and the tenant who is renting it. It is important for both parties to understand the critical points in a Leave and License Agreement to ensure a smooth and hassle-free tenancy.
Here are some essential points that both the landlord and tenant should pay attention to in an LLA:
1. Premises Details:
The agreement should contain a detailed description of the property being rented out, including its location, address, and other essential features such as parking space, water supply, and electricity backup.
2. Rent and Security Deposit:
The agreement should clearly mention the rent that the tenant will be required to pay and the security deposit they need to pay upfront. Also, mention the due date of rent payment and the consequences of delayed rent payments.
3. Duration of Tenancy:
The agreement should mention the exact dates of commencement and expiry of the tenancy. Most LLAs are for a term of 11 months, and after that, the landlord has the right to renew the agreement.
4. Termination Clause:
The agreement should clearly mention the grounds for termination of the tenancy from both parties. In case of any breach of the terms and conditions mentioned in the agreement, either party can terminate it by providing sufficient notice to the other party.
5. Maintenance of Property:
The agreement should mention who is responsible for maintaining the property, including any repairs, painting, or electrical work that needs to be done. The tenant should ensure that they take good care of the property and leave it in the natural state at the end of the lease term.
6. No Subletting:
The agreement should mention that the tenant is not allowed to sublet the property to anyone else without the permission of the landlord. This clause is essential to ensure that the landlord knows who is occupying the property and can maintain its safety and security.
7. Restrictions on Use:
The agreement should mention any limitations or restrictions on the use of the property, such as not allowing pets or using the property only for residential purposes.
In conclusion, a Leave and License Agreement is an essential document for both the landlord and tenant. By ensuring that all the vital points are included in the agreement, both parties can steer clear of any confrontations, misunderstandings, or disputes down the road.