Can I Make a Rent Agreement for 3 Years in India?

Yes, you can make a rent agreement for 3 years in India, provided you observe the legal formalities. Any rental agreement for a term exceeding 11 months must be registered at the Sub-Registrar’s office to be legally valid. If you and the landlord mutually agree to a 3-year term, it becomes essentially a “lease” arrangement, not a simple short-term tenancy.

Can You Have a 3 Year Tenancy Agreement?

• When drafting a 3 year rent agreement, ensure the document includes all essential clauses: names and addresses of landlord and tenant, full description of the property, rent amount and mode of payment, security deposit details, term start and end dates, escalation/revision clauses, rights and obligations of both parties (repairs, maintenance, utilities), termination provisions, etc.

• Because the period is long, you should also include a clause for rent revision (e.g. annual increase), lock-in period (if any), and the conditions under which early termination is allowed.

• You must execute it on proper stamp paper as per the Stamp Act of your state. You must register the rent/lease deed in the Sub-Registrar’s office because the term exceeds 11 months.

• Both landlord and tenant must sign, and it’s recommended (often required) to have two witnesses sign as well.

• If you skip registration for a 3-year agreement, it may be treated as unregistered lease, which can weaken enforceability (especially in disputes), though the agreement still exists in principle. Including a longer term provides stability to both sides, but you must comply with formalities.

In many cases, parties prefer shorter 11 month agreements to avoid registration costs and tax/formality burdens.

Yes, you can make a rent agreement for 3 years in India. Long-term rental agreements, such as those for 3 years, are legally permissible. It can provide stability for both the landlord and the tenant. A rent agreement lays out the terms and circumstances that the property owner establishes when renting out a property. Read on to get the steps.

How to Make a 3 Year Rent Agreement?

Here are steps to create a 3-year rent agreement:

1. Include all necessary details such as names of the landlord and tenant, property address, rent amount, lease duration (3 years), security deposit, and any specific terms and conditions.

2. The agreement must be executed on stamp paper of required value, which varies by state. Long-term agreements usually require higher stamp duty.

3. Both the landlord and the tenant must sign the agreement in the presence of two witnesses.

4. For agreements lasting more than 11 months, it is mandatory to register the rent agreement with the local sub-registrar's office. This ensures legal validity and protection for both parties.

5. Include clauses for renewal and termination to outline the procedures for extending the lease or ending it before the term expires.

I hope you found this helpful.

Read more