Renting directly from the owner: understand how it works

If you are looking for a property, you have certainly come across the possibility of opting for direct rental from the owner. This option does not involve real estate agencies, brokers or third parties, but don't be alarmed if you think that it is less secure because of this exclusion.

All property rentals have their own rules and procedures that must be followed by the Tenancy Law. In this law, landlords and tenants have their duties and rights, as well as rules that must be followed when signing the rental agreement .

These procedures are important to ensure that neither party is harmed. However, there is no denying that there is a lot of bureaucracy involved. This can even delay the tenant's move into the property.

This is why many people end up opting to rent directly from the owner. Provided for in our legislation, it considerably shortens this entire process, with the main advantage of significantly reducing the procedures we mentioned.

It is a very beneficial option for both parties. However, in order to be agreed upon without risks, it requires a lot of attention to some precautions that should not be overlooked.

In this text, we will explain in detail the main characteristics of this rental model, its advantages and disadvantages, and the main points that must be taken into consideration in this agreement.

See the topics that will be covered:

• How does renting directly from the owner work?
• What are the advantages of renting directly from the owner?
• What are the disadvantages of renting directly from the owner?
• Tips for renting directly from the owner safely.

Happy reading!

How does renting directly from the owner work?

When renting directly from the owner, the rental process is much faster and less bureaucratic. This is because the agreement is signed directly between the landlord and the tenant, without the participation of third parties such as real estate agencies or notaries.

It becomes a much more practical alternative for those who want to avoid all the documents and procedures involved in renting properties. Which, let's face it, are many points and rules to be followed by those involved.

Firstly, it is very common to require some type of guarantee for the lease. This is extra money that many tenants do not have and end up facing obstacles in signing the agreement.

Secondly, because the rental agreement requires a series of specifications as a way of guaranteeing financial security between those involved. From establishing the amount of the fine in cases of non-payment or departure without prior notice, to adjustments and the fees involved.

Not to mention all the duties of the tenant and the owner. These include the obligation to inspect the property to ensure it is in perfect condition for use, repairs and repairs if necessary, and many others.

There are so many procedures that, in order to avoid them, many people end up resorting to renting directly from the owner.

In this case, it is common to use the famous drawer contract to formalize the agreement. In other words, an informal document that does not involve any third party, made directly between the owner and the buyer.

What are the advantages of renting directly from the owner?

Choosing to rent directly from the owner has several benefits. In addition to being easier to sign a lease agreement, the costs that usually involve this process are much lower. In addition, the model is provided for by law, which guarantees greater security.

See each of these benefits in detail:

Easy to rent

When renting directly from the owner, it is much easier to rent the property compared to the entire process involving third parties.

Here, it is enough for both parties to create their own rules of what must be followed and reach a common agreement on payment deadlines, amounts and other rules.

This also ensures greater flexibility in negotiation, an advantage that is harder to see in other more formal rental models. After all, the tenant and landlord will decide together what should be done by both parties, so that no one is harmed.

Lower cost and greater speed

In leases involving real estate agents, it is customary for owners to have to pay a fee or percentage for the service provided. This amount can reach 30% of the rent, which does not occur in direct rentals with the owner.

Opting for this informal contract is much more cost-effective for both parties. For the tenant, he will only be able to pay the real value of the property, without including the fees charged by the real estate agency.

In addition to the lower cost, this type of rental greatly speeds up the rental process. All the landlord and tenant need to do is agree on the rules they find coherent and sign the rental contract.

This, without the need for a third party to thoroughly check the document, analyzing whether everything is correct and within the requirements of the Tenancy Law.

Direct rent from the owner is provided for by law

Renting directly from the owner is provided for by law. This is an excellent advantage, because even though it is considered an informal agreement, both parties will have their rights and obligations guaranteed.

However, this security will only be possible if those involved are concerned about drafting a clear and complete contract, so that no one is harmed. It can follow the same standard as the rental contract governed by the Tenant Law.

This model should detail all the rules that each tenant must follow. For example, specify that the tenant is responsible for maintaining the property and, if they do not comply, they may be subject to fines.

What are the disadvantages of renting directly from the owner?

Nothing is done with advantages alone, and the same is true when renting directly from the owner. Just like any document, this model can also present certain risks.

This is mainly because it does not involve any third party in the process, allowing the agreement to be signed directly between the parties. Failure to take care when drafting the contract can be extremely dangerous for the rental process.

See the main situations that can affect those involved:

Inaccurate or abusive values

One of the main benefits of having the assistance of a real estate agency when renting properties is their knowledge of the real estate market to define fair rental values.

These prices tend to vary greatly depending on a number of factors, from location and price per square meter to the cost of living in the region.

Professionals in the sector understand precisely the dynamics of pricing a property's rental, which is most likely not the case for landlords.

By dispensing with the participation of third parties in direct rental with the owner, the chances of being charged an incorrect and higher than normal amount are greater.

In this case, the tenant will be severely harmed financially, especially since they will most likely not have any idea of ​​the average value of properties in the areas they want to visit.

Not to mention the risk of experiencing sudden increases in the rental price. Only the real estate agency will be able to carry out these adjustments appropriately if necessary and without surprises.

Contractual errors

The rental agreement is a long and comprehensive document. It includes all the rules to be followed by the landlord and tenant, as a protective measure to ensure that no one is harmed.

When renting directly from the owner, there is a huge risk that these rules will not be fully complied with due to lack of knowledge or attention. The lack of any clause can open the door to various problems that compromise the rental process.

A poorly written contract can lead to future inconveniences, which significantly reduces the security of a good housing experience.

Difficulty in advertising

The real estate market is full of peculiarities. There are several laws, regulations, procedures to be followed, sales specificities and much more.

In this scenario, advertising properties requires well-defined strategies to reach and win over the ideal target audience that is interested in the location.

The process, which is faster and more assertive with a real estate agency, will certainly face greater challenges when renting directly from the owner.

The landlord will most likely not have the same expertise and knowledge as professionals in the field to manage and advertise the property. Even if it is valued and located in a popular neighborhood, the owner may have more difficulties in renting it out.

Therefore, the longer it stays for sale, the greater the owner's losses will be. Not to mention that it could further delay the time it takes to find someone who is interested.

Conflicts in the relationship between the parties

Many direct rental agreements with the landlord result in problems. The vast majority of these problems occur due to a misunderstanding of the rules established in the rental agreement.

When not resolved properly, these conflicts can last for a long time, further damaging the relationship between the parties. All this, because the document is signed without the intermediation of third parties.

Tips for renting directly from the owner safely

As we have seen, renting directly from the owner has its pros and cons. It can, in fact, be a good option for those who want something quicker and without bureaucracy.

On the other hand, it requires certain care to avoid misunderstandings and conflicts between the parties. Since these problems can occur with a certain probability, we have separated some tips that can help you in this process.

When opting to rent directly from the owner, be sure to be familiar with the legislation.

Renting directly from the owner is permitted by our legislation. However, it does not involve the participation of third parties. Therefore, it is very important that both the landlord and the tenant are familiar with the Tenancy Law.

Even though those seeking this type of rental are avoiding the bureaucracy involved in this process, this does not mean that they should be completely left aside.

Those involved can - and should - draw up a contract with all the rules they consider important for the agreement. Use the Tenancy Law as a basis, more specifically, the rights and duties of each party.

This document should be as complete and clear as possible, so that there is no doubt about what must be fulfilled and followed. This way, the chances of errors and misunderstandings will be reduced.

The more you know about what the law says about renting property, the better prepared you will be to reach a win-win agreement when renting directly from the landlord.

Carry out a complete inspection of the property

One of the mandatory items in a standard rental agreement is a property inspection. The aim is to ensure that the property is in perfect condition for the tenant to live in.

In leases involving third parties, this inspection must be carried out by a qualified professional. Once compliance has been confirmed, a supporting document must be attached to the document to avoid any doubts.

Although it is not mandatory to do this when renting directly from the owner, it is important that it is kept as a form of security. This way, the tenant will be sure that the property does not contain any problems or defective objects.

Furthermore, the landlord will have greater security with this inspection. Therefore, if any damage occurs to the property or objects are broken, the tenant will be responsible for repairs. This is provided for in the Tenancy Law.

It is worth noting, however, that this rule applies to losses that have been caused by the tenant. Problems resulting from wear and tear over time, such as leaks or mold, must be repaired by the property owner.

Include a rental guarantee in the contract

Many rental contracts usually have some type of rental guarantee. Whether it is the use of a guarantor , which has lost popularity today, or more common options such as insurance bonds or a security deposit .

Each of these models also has its advantages and disadvantages, which need to be analyzed in order to find the best option for those involved.

When renting directly from the owner, they can be very beneficial in providing greater financial security for both parties. This way, if the tenant does not pay the rent properly, the owner will not be financially harmed.

Don't forget your duties and responsibilities

The tenant and the landlord have their rights and duties as set out in the Tenancy Act. Even when renting directly from the owner, these rules must be followed so that the process is advantageous for everyone.

Among the rights of the first is to receive the property in perfect conditions of use. Among their duties, we can highlight the maintenance of the environment, the payment of rent on time and, complying with the prior notice in cases of early departure.

These rules are extremely important to ensure that neither party is harmed. Therefore, make sure to clearly state them when drafting the rental agreement.

This way, if something goes wrong, they will have a document that proves it and demands the proper behavior guaranteed by the Tenancy Law.

Maintain a harmonious relationship with the owner

A harmonious relationship, through clear communication and avoiding misunderstandings, is the key to maintaining good contact with anyone. Especially between the landlord and the tenant in direct rentals with the owner.

Even in the face of the imminence of conflicts in this agreement, it is important to always seek to resolve quickly and peacefully any problem that may arise.

It is always easier to resolve any request when both parties respect each other and have a clear and close conversation about what is happening.

After all, you will have to resolve such disagreements alone, without the help of a third party to mediate their resolution.

Conclusion

Renting directly from the owner can be an excellent option for those who do not want to deal with bureaucratic and time-consuming processes. However, it will only be beneficial if everyone involved takes the necessary precautions for this agreement.

The lack of a real estate agent in the process takes away many fundamental aspects of the property rental process. Therefore, it is up to the landlord and tenant to replace this role and work together to create a complete contract with the duties and rights of each party.

Remember the tips we shared in this text. They can help you to sign this agreement in the best possible way and greatly reduce the dangers that may arise.

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