Online Rent Agreement, Lease Agreement

A Complete Guide on Rental Agreements Commonly Registered in Chennai

The rental agreement and the lease agreement are the two most common agreements to rent houses or commercial property in Chennai. Although you may find out what these actually mean from their name, they have different clauses and lock-in periods. Get these answers, as well as many others related to rental agreements below.

What are the Different Types of Rental Agreements in Chennai?

In order to offer you utmost clarity on the rental agreements in Chennai, let us first walk you through the different types of rental agreements that are popular in Chennai:

• A Rental Agreement of 11 Months
  In Chennai, the tenant and the owner can create a rental agreement for a period of 11 months. The property can be used for commercial or residential purposes; however, he has to specify the same before renting the property. Once the lock-in period of 11 months is over, the rental agreements provide the provision to renew the agreement.
  The owner cannot increase the rent amount or the deposit during the lock-in period. However, before the renewal of the agreement, the owner and tenant can mutually decide on increasing the rent amount.
• Long-term Lease Agreements
  The minimum requirement for the creation of a long-term lease agreement is to have the agreement valid for at least a year. It can extend to 10 years or even more. The tenant has to pay the lease amount to the owner prior to moving into the property. The lease amount is big, and the tenant does not have to pay the rent on a monthly basis.
  When the tenant vacates the property, the owner has to release the lease amount to the tenant. The owner can deposit this amount in a separate account during the lock-in period and make interest out it.
• Commercial Lease Agreement
  The registration and processing of a commercial lease agreement are the same as those of a long-term lease agreement. However, before renting the space, the tenant must specify the purpose of renting and the business he is into to create a conducive environment for the property owner and the tenant.
• Commercial Rental Agreement
  A commercial rental agreement is the same as a rental agreement. However, the tenant uses the property to make an earning out of it. The tenant has to pay a monthly rent that is decided by the owner, and the security amount has to be deposited.
  As opposed to the lease agreement, the tenant is eligible to get the security deposit back and not the monthly rent that he paid to the owner.

How to Create a Rental Agreement Online in Chennai?

In the digital age, it has become easier than it ever was to complete the legal processes online, without having to go through the hassles of visiting the registrar’s office and waiting for hours to get the registration done. The government of Tamil Nadu has started e-filing portals for the completion of the rental agreements online. You can create your rental agreement online without any professional help.

Below are the steps to follow to create a rental agreement online in Chennai:

• Visit the e-filing portal for the creation of the rental agreement
• Fill all the required details of the tenant and the owner
• Discuss the important clauses with your tenant/owner and draft a rough copy of the same. Look for edits and check details of the rent amount and security deposit.
• Once it is approved by both the parties, have it printed on the stamp paper.
• The stamp paper should be of a minimum value of Rs. 100.
• Review your application and make payment for the registration.
• Receive the rental agreement through courier in the next 3-4 business days.

What are the Types of Payments that a Tenant Makes While Renting a Property?

There are three types of payments that a tenant makes before and while renting a property from the owner:

• Token Deposit:
  The token deposit is completely different from the security deposit and the rent of the property. When a prospect visits the property and develops an interest in it, he pays the owner a minimal amount of the rent or the security deposit to book the property. This saves the property from other individuals from developing an interest in the same.
  While paying the security deposit, the tenant can deduct the amount that he has already paid as a token deposit. Hence, the token deposit is a part of the security deposit or rent, and he need not pay anything extra.
• Security Deposit:
  A security deposit is typically worth the amount of two or three month’s rent. This amount is kept as a security with the owner to ensure that the tenant pays the rent every month. In case of any intentional damage to the property, the owner can use the security damage to cover the cost. In most cases, the owner releases the security deposit, when the agreement expires, and the tenant moves out of the rental property.
  The tenant is not eligible to receive any type of interest on the security deposit that he is withheld with the owner.
• Rent:
  Rent is the amount that a tenant pays to the owner in exchange for the facility that he dwells in or carries out his business. The owner decides the rent amount, and when the tenant agrees to it, they enter into a rental agreement.
  The owner does not have the right to increase the rental amount during the lock-in period and without any prior notice to the tenant. Once the agreement period expires, the owner can propose an increase in the rent. If the tenant agrees for the same, a new rental agreement can be created with the revised rent and security deposit.
  However, if the tenant does not agree to the raise, the owner has the right to terminate the contract and look for new owners. In this case, the owner has to give notice to the tenant regarding the same.

Should you Register the Rental Agreement on your Own or Seek Professional Help?

Before jumping on the conclusion, let us tell you both the procedures and the pros and cons of the same.

• Registration of Rental Agreement in Chennai without any Professional Help:
  As mentioned before, we have online portals for the registration of the rental agreement in Chennai, which helps us save a trip to the registrar’s office
  If you, as a tenant or an owner, are very well-versed in computers, you can fill out the form on your own by adding all the required details. In case you are using the online mode of registration, make sure that all the parties—the tenant, the owners, and the two witnesses—have an Aadhaar card. However, if you are filling the form offline, an Aadhaar card is not mandatory.
  Now comes the critical part—the inclusion of the clauses. You may not know what clauses to include and discuss with your tenant/owner. There are many online sources, which you can refer to understand the important clauses that you need to get sorted with your owner before creating the draft of a rental agreement. Once you have a clear idea of the clauses and have discussed it, you need to buy a stamp paper and have the clauses printed on it.
  Next, you need to book an appointment to get the biometric verification done. Here you will need two witnesses with their original identity cards for the verification process.
  Congratulations! You have successfully registered the rental agreement on your own. Now, expect the delivery of the rental agreement in another 3–4 days.
• Registration of the Rental Agreement with Professional Help
  There are a number of professionals out there, who can help you get through the process with utmost convenience. With a professional’s help, they will walk you through the critical part with the least possible complexity
  We, at NoBroker, have seen and created a number of rental agreements. This helps us understand the most critical as well as the most significant clauses that have the potential to spark conflicts in the later stage of the agreement. As a result, we list them out for our clients to ensure that they have a good stay/renting experience.
  Once the details are filled by the tenant/owner and the payment is made, we process the document. We ask for a suitable time for our clients for the biometric verification process. Good news? We also love to work on Sundays. The tenant/owner ensures the availability of all the parties, and we carry out the biometric verification process.
  We then submit the rental agreement for registration and send out a soft copy of the rental agreement to both parties. All this, without stepping out of the house and at competitive rates. While the registration of a rental agreement in Chennai is no game, we assist at every step so that you have no worries.