SMALL REPAIRS CLAUSE IN APARTMENT



In principle, repairs are the landlord's responsibility, and the tenant only has to tolerate them. However, if the landlord has agreed on a minor repairs clause in the lease, the tenant is liable to a limited extent for minor damage even through no fault of his own.

A so-called minor repair clause is only validly agreed if it meets the following five requirements:

The maximum amount per minor repair is indicated. The district court considered a maximum amount of 110 $ to be appropriate. Other dishes are less generous. With 85 $, landlords are on the safe side.

  • The maximum annual amount for all minor repairs is specified and amounts to 8% of the annual net rent.
  • The clause is limited to those parts of the apartment exposed to frequent access by the tenant.
  • The tenant is only obliged to pay, not to carry out the repair work.
  • The tenant is not obliged to bear the proportional costs if the repair costs are above the agreed amount.

Rent deposit and rent security

Landlords should always think about a deposit when signing the rental agreement. A deposit gives landlords financial security at the end of the rental period.

Suppose the tenancy is still ongoing, according to recent rulings. In that case, landlords are not allowed to use the rent security concerning claims in dispute between the landlord and the tenant.

Landlords may request a rental security deposit if this has been contractually agreed upon. The deposit may not exceed three times the monthly rent without advance payments for operating costs. The tenant may pay the cash deposit in 3 monthly installments. The first installment is only due at the beginning of the tenancy. Landlords may use defaulting installments to justify termination without notice due to default in payment.

Landlords must also invest the rent security with a credit institute at an interest rate customary for savings deposits with a 3-month notice period in luxury apartments in Lahore. In principle, the tenant is entitled to the interest. At the same time, however, they also increase the landlord's security.

The tenant can ask the landlord to prove that the deposit paid has been made following the law. Renters must then inform the tenant of the relevant account number, the agreed period of notice and the amount of interest drawn. He may withhold the rent deposit until such time, as this is the case.

The provision of rental security is also permitted in other ways, particularly by submitting a bank guarantee. However, the cash deposit is best for landlords. Only then can landlords ask for a deposit:

  • Deposit payment only by agreement
  • A maximum of 3 times the monthly rent
  • Right of the tenant to pay a cash deposit in 3 monthly installments

Signatures and attachments

Although the signatures of the landlord and the tenant are only at the end of the contract, they are one of the most important things. Landlords should make sure that each contracting party signs.

Landlords should refer to attachments to the rental agreement in the contract. Both the landlord and the tenant should sign all attachments, and references should be made to this in the rental agreement. This is the only way for landlords to keep long-term rental contracts legally secure in writing.

Examples of attachments to the rental agreement:

  • House rule
  • Cleaning services
  • Garden use plan
  • Plan for using the parking space
  • Plan of the apartment or commercial space

Play it safe:

  • Reference to the attachment in the rental agreement
  • The signature also on the attachments
  • Fixed joining of rental agreement and attachments

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