It is a legal document which is prepared by the landlord in the name of the tenant. A rent agreement provides tenancy for a short period, which is later renewed after the completion of the period. A Rent Agreement protects the interests of both the landlord and the tenant. The terms of the rental agreement bring clarity to the arrangement, such that the consideration, rights and obligations of both parties, and the rental term are established.
A Rental Agreement can be written, oral or implied. Since the rental agreement is the most important part of a landlord-tenant relationship, it must be in writing. The advantage of having a written agreement is that it outlines the terms and conditions agreed to by the parties. Once the parties have agreed to their terms and conditions in the contract it cannot be changed unless both the parties agree.