• Fri. Oct 22nd, 2021

Your Complete Guide to Rental Agreement in India


In a world where buying property is no longer an option unless you’ve saved for more than your lifetime, renting has become the next best thing. A rental agreement is important for people who are looking to rent their properties, for people who are looking into renting a property and of course, anyone looking for a mode of shelter in a big city. Now, what exactly is a rent agreement? 

rental agreement

What is a Rental Agreement?

A rent agreement is a legal contract that is made between the landlord of the property and the tenant who wishes to live there. Interestingly enough, it is one of the legal documents we don’t pay much attention to, but we should. The agreement is a crucial legal document/contract which includes all the information, terms, conditions and clauses that come along with letting out a property on rent. It consists of components like security deposits, your monthly rent, information regarding the property, like size, address, type and of course the duration of the agreement. It is of utmost importance that you go read carefully the rent agreement, rules and clauses, before signing it. 

Rental Agreements

For the majority of the population who had dealt with properties or rent, it hasn’t always been smooth sailing, there’s always some instance or experience that led to some bumps along the way, this has the possibility of causing friction in the tenant-landlord relationship. That’s why it is important to work on a rental agreement with both parties, to avoid any issues along the way. According to the Registration Act of 1908, the registration of a rent agreement is of crucial importance if the renting period is more than 12 months. The agreement is important for both the person renting and the landlord as it brings about a property’s safeguard for the landlord, as well as protecting the tenants from dealing with any illegitimate demands by the landlord. 
Read: Process of Renting Out a Home in India


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Important Factors in a Rent Agreement

Important factors in a Rent Agreement
Important factors in a Rent Agreement

Information of the Occupants

It is important to have all the names of the occupants in the rental agreement so that it brings about clarity about every individual living in the rented property or should take responsibility for the place.

Duration of the stay

This is done to make sure the tenant will vacate as per the decided time and will not illegally try to take possession of the said property, mentioning the duration of the stay in a rental agreement can leave the owner on a safer side legally. And for the tenant’s benefit, the property owner cannot illegally force the tenant to vacate the place before the decision on the time of the stay, if it is on the rental agreement.
Read: The Complete Guide to Renting a Home in India

The Amount of Rent

The rental amount or instalments you have to pay are very specific. Here mentioned is the sum of money you need to pay every month, the date upon which the monthly rent needs to be paid, the punishment statement for any late payments. This is done so that both parties know clearly, what needs to be done and states that no illegal money related requests take place. To pay your rent using a credit card click here.

Maintenance Costs

The maintenance cost is either the tenant’s or landlord’s responsibility, it varies from property to property. This states that any damage is done, or costs for major or minor repairs are mentioned in the rental agreement so that there is no confusion post the duration of the tenancy and so that there is no miscommunication.

Rules to be Followed

This mentions the rules regarding the safekeeping and treatment of the property and its surroundings. Things like, subletting the space and causing alterations to the property are mentioned here. 

Renewal of the Rental Agreement

This mentions the date of the renewal of the agreement, if the tenant is staying for a longer period that extends post the decided upon duration, then they need to sign the lease again.
Read: How to Get Your Property Noticed

 Amenities

This here mentions the amenities that are provided to the tenant. Their condition and if they require any repairs etc.

Exit Clause

If the tenant is leaving before the decided upon a time, then she/he would have to abide by the rules of the exit clause, pertaining to the agreement.

Date and Signatures

Lastly, both parties need to initial the agreement for proof, stating that they agree with all the clauses and rules. Failure of doing so might lead to unwanted legal action.

One more crucial element of any rental agreement, that you may not know about, is the Police Verification of the tenant. This is an important step that needs to be done to ensure the safety of your property. According to Section 188 of the Indian Penal Court, doing a background check is mandatory, failure to do so is a punishable offence

Rent Agreement Format

Rent Agreement Format
Rent Agreement Format

Here is a sample of a rental agreement, for future reference. You can also find several rooms, house, tenant agreement formats on the internet, for more insight, under names like- house rental agreement in English, pdf or word and so on.

This Rent Agreement is made on this __________ (date of rent agreement) by ________________ (name of the landlord) S/o _______________ (father’s name of the landlord), Add: ___________________________________________________ (residential address of the landlord). Hereinafter called the Lessor / Owner, Party Of the first part
Read: All the Information You Need to Know About Co-Living Spaces in India

AND

_____________________________ (Name of the proposed company), through its proposed director __________ (name of the director) called Lessee/Tenant, Party of the Second Part

That the expression of the term, Lessor/Owner and the Lessee/Tenant Shall mean and include their legal heir’s successors, assigns, representatives etc. Whereas the Lessor /Owner is the owner and in possession of the property No: ______________

_________________________________________________________________________________ (registered address of the company) and has agreed to let out the one office Room, one Toilet & Bathroom Set on said property, to the Lessee/Tenant and the Lessee/Tenant has agreed to take the same on rent of Rs. ______/- (In words) per month.

NOW THIS RENT AGREEMENT WITNESSETH AS UNDER:

  1. That the Tenant/Lessee shall pay as the monthly rent of RS. _________/- (In words) per month, excluding electricity and water charge.
  2. That the Tenant /Lessee shall not sublet any part of the above said demised premises to anyone else under any circumstances without the consent of the Owner.
  3. That the Tenant / Lessee shall abide by all the bye-laws, rules and regulation, of the local authorities in respect of the demised premises and shall not do any illegal activitiesin the said demised premises.
  4. That this Lease is granted for a period of Eleven (11) months only commencing from ___________ (date of rent commencing from) and this lease can be extended further by both the parties with their mutual consent based on the prevailing rental value in the market.
  5. That the Lessee shall pay Electricity & Water charge as per the proportionate consumption of the meter to the Lessor /Owner.
  6. That the Tenant/Lessee shall not be entitled to make structure in the rented premises except the installation of temporary decoration, wooden partition/ cabin, air – conditioners etc. without the prior consent of the owner.
  7. That the Tenant/lessee can neither make addition/alteration in the said premises without the written consent of the owner nor the lessee can sublet part or entire premises to any person(s)/firm(s)/company(s).
  8. That the Tenant/Lessee shall permit the Lessor/Owner or his Authorized agent to enter into the said tenanted premises for inspection/general checking or to carry out the repair work, at any reasonable time.
  9. That the Tenant/Lessee shall keep the said premises in clean & hygienic condition and shall not do or cause to be done any act which may be a nuisance to others.
  10. That the Tenant/Lessees shall carry on all day-to-day minor repairs at his/her own cost.
  11. That this Agreement may be terminated before the expiry of this tenancy period by serving One-month prior notice by either party for this intention.
  12. That the Lessee shall use the above-said premises for Official Purpose Only.
  13. That the Lessee/Tenant Shall not store/Keep any offensive, dangerous, explosive or highly Inflammable articles in the said premises and shall not use the same for any unlawful activities.
  14. That the Lessee shall pay the one month’s advance rent to the Lessor the same shall be adjusted in monthly rent.
  15. That both the parties have read over and understood all the contents of this agreement and have signed the same without any force or pressure from any side.

In WITNESS WHEREOF the lessor/Owner and the Tenant / Lessee have hereunto subscribed their hand at ______ (place) on this the _____________ (date of rent agreement) year first above Mentioned in presents of the following Witnesses. 

WITNESSES

1.

2.

___________ (name of the landlord)   _________________ (name of the proposed Company)

Lessor Lessee             

Rental Agreement Template in Hindi

यह रेंट एग्रीमेंट ________________ (मकान मालिक का नाम) S / o _______________ (जमींदार के पिता का नाम), _________________________________________________________ (मकान मालिक का आवासीय पता) द्वारा इस __________ (किराए के समझौते की तारीख) पर बनाया गया है। इस प्रकार एफेट्रस भाग के लेसर / मालिक को पार्टी कहा जाता है

तथा

_____________________________ (प्रस्तावित कंपनी का नाम) , अपने प्रस्तावित निदेशक के माध्यम से __________ (निदेशक का नाम) जिसे लेस / टेनेंट कहा जाता है, पार्टी ऑफ़ द सेकंड पार्ट

शब्द की अभिव्यक्ति, लेस्सर / मालिक और लेस / टेनेंट शेल का मतलब है और उनके कानूनी उत्तराधिकारी उत्तराधिकारी, असाइन, प्रतिनिधि आदि शामिल हैं, जबकि लेसर / मालिक मालिक है और संपत्ति के कब्जे में है: ______________

_________________________________________________________________________________________ (कंपनी का पंजीकृत पता) और लेसियन / टेनेंट के लिए एक कार्यालय कक्ष, एक शौचालय और स्नानघर सेट को बाहर जाने के लिए सहमत हो गया है, पट्टेदार / किरायेदार और पट्टेदार / किरायेदार ने रुपये के किराए पर समान लेने के लिए सहमति दी है ______ / – (शब्दों में) प्रति माह।

अब इस समझौते के रूप में इस किराए पर लेने की आवश्यकता है:

  1. कि किरायेदार / पट्टेदार बिजली और पानी के प्रभार को छोड़कर, प्रति माह _________ / – (शब्दों में) के मासिक किराए के रूप में भुगतान करेंगे।
  2. टेनेंट / लेसी उप-स्वामी को उपर्युक्त के किसी भी हिस्से को किसी भी परिस्थिति में मालिक की सहमति के बिना किसी भी स्थिति में उप-नहीं करेगा।
  3. यह कि किरायेदार / पट्टेदार सभी उप-कानूनों, नियमों और विनियमन का पालन करेंगे, स्थानीय अधिकारियों के लिए निर्धारित परिसर के संबंध में और उक्त निर्धारित परिसर में कोई भी अवैध गतिविधियां नहीं करेंगे।
  4. यह लीज केवल ग्यारह (11) महीने की अवधि के लिए दी जाती है, जो केवल ___________ (किराए पर लेने की तारीख) से शुरू होती है और इस पट्टे को बाजार में प्रचलित किराये के मूल्य के आधार पर अपनी आपसी सहमति से दोनों पक्षों द्वारा आगे बढ़ाया जा सकता है। ।
  5. कि पट्टेदार / मालिक को मीटर की आनुपातिक खपत के अनुसार बिजली और जल प्रभार का भुगतान करेगा।
  6. कि किरायेदार / पट्टेदार किराए के परिसर में संरचना बनाने के हकदार नहीं होंगे, केवल अस्थायी सजावट, लकड़ी के विभाजन / केबिन, एयर – कंडिशनअपसेट की स्थापना को छोड़कर। मालिक की पूर्व सहमति के बिना।
  7. यह कि किरायेदार / पट्टेदार स्वामी की लिखित सहमति के बिना उक्त परिसर में न तो जोड़ / परिवर्तन कर सकता है, और न ही पट्टेदार किसी भी गड़बड़ी (फर्मों) / फर्म (एस) / कंपनी (ओं) को भाग या पूरे परिसर को सौंप सकता है।
  8. यह कि किरायेदार / पट्टेदार किसी भी उचित समय पर निरीक्षण / सामान्य जाँच के लिए या मरम्मत के काम को करने के लिए लेसर / मालिक या उसके अधिकृत एजेंट को उक्त किरायेदार परिसर में प्रवेश करने की अनुमति देगा।
  9. कि किरायेदार / पाठी उक्त परिसर को स्वच्छ और स्वच्छ स्थिति में रखेगा और ऐसा कोई कार्य नहीं करेगा या करने का कारण नहीं होगा जो अन्य के लिए एक उपद्रव हो सकता है।
  10. कि किरायेदार / पट्टेदार पूरे दिन अपनी मरम्मत के लिए मामूली मरम्मत का काम करेंगे।
  11. कि इस आशय के लिए किसी भी पक्ष द्वारा एक महीने पहले नोटिस देकर इस किरायेदारी की अवधि समाप्त होने से पहले इस समझौते को समाप्त किया जा सकता है।
  12. पट्टिका आधिकारिक प्रयोजन के लिए उपर्युक्त परिसर का उपयोग करेगी।
  13. यह है कि पट्टेदार / किरायेदार किसी भी आक्रामक, खतरनाक, विस्फोटक या अत्यधिक भड़काऊ लेखों को संग्रहीत नहीं करेगा / करेगा और किसी भी गैरकानूनी गतिविधियों के लिए उसका उपयोग नहीं करेगा।
  14. कि पट्टेदार को एक महीने का अग्रिम किराया चुकाना होगा, वही मासिक किराए में समायोजित किया जाएगा।
  15. कि दोनों पक्षों ने इस समझौते की सभी सामग्रियों को पढ़ा और समझा है और बिना किसी बल या दबाव के किसी भी पक्ष से हस्ताक्षर किए हैं।

निम्नलिखित में, साक्षी / मालिक और किरायेदार / पट्टिका ने अपने हाथों को ______ (स्थान) पर इस _____________ (किराया समझौते की तिथि) पर सदस्यता दी है, जो निम्नलिखित गवाहों के प्रस्तुतिकरण में उल्लेखित है।

विटनेस:

1।

2।

___________ (मकान मालिक का नाम) _________________ (प्रस्तावित कंपनी का नाम)

Types of Rental Agreement

There are 2 types of rental agreements in India. The first one is a rent agreement that lasts for a minimum of 12 months. This comes under Rent Control Laws put up by the State government. The second one is a rent and license agreement of up to 11 months which doesn’t fall under the Rent Control Laws.

Registered Rent Agreement VS Notarized Rent Agreement

Registered Rent Agreement

This is a rent agreement that is signed by both parties and then scanned with the Government’s Registrar office is a registered rental agreement. This process is conducted by the office of Sub Registrar for the specific area and concluded with the same. It requires both parties, landlord and rentee, to be present at the time of execution of the document. The agreement then becomes a public document and is then free to access for any legal procedures.

Notarized Agreement

This is an agreement that is attested by a public notary. The only responsibility of the notary is to verify the identity of the Licensor and Licensee that are signing the agreement. She or he then later stamps the agreement with a stamp that states “Signed Before Me”. The notary does not check anything else in the contract. A Notarized agreement includes the stamp, seal and signature of the Notary on the last page of the rental agreement.

Important Documents Needed for a Rental Agreement Registration & Stamp Duty

Rental Agreement Registration & Stamp Duty
Rental Agreement Registration & Stamp Duty

The first thing you need to remember when it comes to registering for your rental agreement is Stamp Duty.

Stamp duty is a type of property tax, it is necessary to be paid when the property is being used by another person. When you go to buy or rent a house or property, you need to pay stamp duty on the basis of the value of your payment or transaction. You should pay stamp duty because it is proof that the property in question is under your name. All rental agreements must be stamped with a flat stamp duty charge of 0.25 per cent of the total rent for the period.

Read: Know Your Renting Rights with the Model Tenancy Act

E-stamping is another option that is available in some states. With e-stamping, you do not need to physically go and buy stamp paper.  You can simply log on to the Stock Holding Corporation of India Ltd website: https://www.shcilestamp.com/ and see if the state you are in offers e-stamping.

To Move to the Next Step of Your Registration Process need the Following Documents: 

Registration Process need the Following Documents
Registration Process need the Following Documents
  1. The original proof/evidence of ownership of the property in question.
  2. Property documents such as tax receipt of the property that will be on the lease.
  3. Two passport-sized photographs of each of the parties and one of each of the witnesses present.
  4. A copy of the address proof of both parties and witnesses. Passport copy, Aadhar Card copy, Ration Card copy, Bank Passbook or Driving License copy, any one of these can be submitted as the address proof.
  5. Route map of the property to be leased out.

Read: Make A Free Listing Or Free Ad For Your House & Apartment Up For Rent

The process of renting a place isn’t an easy one, but with a few legal steps and a little patience, two witnesses and a good landlord, and us! NoBroker will help you get a rental agreement from the comfort of your home! Just visit the link below, and you can get your rental agreement home delivered!

You can even drop us a comment below with any questions and we’ll be happy to help.

FAQ’s

What if I have to back out of my rental agreement?

You can back out of the lease, only if both parties agree and sign and legally end the lease.

How can I change the terms of my rental agreement?

If you are the landlord of the property, you are allowed to change terms, conditions and clauses of the rental agreement, but only with 30 days prior notice. However, if you have mentioned changing of terms and conditions in your agreement, then you can also give 7-8 days’ notice.

How can I do the stamp duty online?

E-stamping is another option that is available in some states. With e-stamping, you do not need to physically go and buy stamp paper.  You can simply log on to the Stock Holding Corporation of India Ltd website: https://www.shcilestamp.com/ and see if the state you are in offers e-stamping.

What if I make my own rental agreement?

There is nothing stopping you from writing your own rental agreement, so as long as both parties are present while doing so. However, it is more advisable to consult a lawyer, as they will provide more security and will know all the legalities that might come along.

Who keeps the original rental agreement?

In all cases, the landlord of the property keeps the original copy. But you can always ask for a copy. If you are also using a lawyer, she or he will also have a copy of the rental agreement that was used.

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Vivek Mishra

With over 23 years of experience in Real Estate, and an architecture degree, Vivek is here to help others buy/sell or rent the right way. Through his writing you will find out what people look for, and what you can do to get the best out of your home, and also how to get the best for your home.

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