One way to make our property investment productive is to rent it out. Because by renting out property, we will get passive income while our assets remain. For example, a house property, we can rent it out on a monthly or yearly basis. However, to keep our house rental business running smoothly, these leases need to be tied to a house rental agreement.
Like a letter, the house rental agreement is made in writing. This is because there is strong physical evidence and it could be used as legal evidence if there is a dispute in the future. In accordance with the rule of law in Indonesia, there are five pieces of evidence that can be confronted in civil law. They are written evidence, witnesses, confessions, oaths, and suspicions. Well, in a house rental agreement, we can have 2 elements of this evidence, namely written evidence and witnesses.
Legal Terms of the House Rental Agreement
In civil law, there are conditions for the validity of an agreement. According to the Civil Code (KUH) in Article 1320, there are 4 conditions for an agreement to be valid. That is:
1. There is an agreement between the parties involved in the agreement
This means that the parties involved in the agreement make an agreement consciously, not forced, without pressure or under influence. Both parties can also make an agreement in front of a notary as a witness.
2. The parties to the agreement must speak
The parties must be adults, healthy in mind, not crazy, drunk or in impossible conditions. In other words, both parties must be equally aware and have thought about this carefully.
3. There is a certain goal
An agreement must have a clear purpose. So that there is a common direction for the parties to find an agreement.
4. There is a lawful cause
Agreements can only be made for things that do not violate laws or norms. If the agreement is an evil consensus, then legally it cannot be made in the agreement. Make agreements with good intentions for the people involved.
The Right Content in the House Rental Agreement
In order to make an agreement stronger, it should be made in front of a notary. Because according to article 1867 of the KUH, with an agreement made before a notary, the agreement letter can become an authentic deed.
Legally, authentic evidence cannot be disputed, unless the dissident has new evidence. Meanwhile, if the agreement is made only between the tenant and the owner of the house, it includes non-authentic evidence that must be re-proven before the court if this rental issue is disputed in the future.
Then, what should be included in the contents of the rental agreement?
1. Data of the parties
In a proper house rental agreement, the tenant and the home owner must clearly identify their identities without any forgery. So, legally it will be known who the legal subject and made the agreement. The identity listed must also match the ID card. This is to avoid criminal threats such as fraud or abuse.
2. Object, price and rental period
The house that is the object of the lease must have clear data. Everything must be written in detail in the rental agreement letter. For more details, you can also add the location and situation of the house.
3. Rights and obligations of the parties
The parties involved in the lease must be clear about their rights and obligations. The rules in an agreement are the implementation of obligations and the fulfillment of rights between the parties. So that these rights and obligations are reciprocal between the parties involved. So it must be confirmed in the agreement.
4. Sanctions and Fines
As a consequence, if there is negligence of obligations or violation of rights, it is also necessary to explain if there are sanctions or fines. So with this clarity, the parties can understand each other’s consequences if they neglect their obligations. For this reason, it is important to include the sanctions for violations in the rental agreement letter.
5. Signature on Stamp
The signature shows that the owner of the signature has read and understood the contents of the agreement. Meanwhile, the existence of the stamp duty does not determine a valid agreement or not.
Basically, stamp duty is a tax levied on a civil document. Its function is to provide legal value to a document. So if the document becomes evidence in court, then it is known to pay taxes.
Example of a House Rental Agreement
There are many examples of the correct house rental agreement and fulfill the above rules on the internet. If you get an example of a suitable rental agreement letter, adjust it according to your needs.
If you use the services of a notary in making an agreement, a notary usually has many examples of house rental agreements. Here is an example of a valid home rental agreement.
Those are tips from House in making a house rental agreement. Make sure every point written in the agreement is fulfilled, don’t be negligent. Add additional provisions so that if something unexpected happens, it can still be resolved amicably.