Rent
Agreement

Rent Agreement

A house rent agreement can simply be defined as a legal contract between the landlord and tenant for a fixed period. It is a set of terms and conditions, which have to be adhered to by both parties. The rent agreement is renewable every 11 months or more, or as per the timeframe mentioned in the contract.

Registered Rent Agreement

Any rental agreement for more than 12 months needs to be registered for both tenants and landlords. An amount of INR 1100 is charged for rent agreement registration in addition to the applicable stamp duty. Stamp duty usually varies across states. For example, in Delhi, stamp duty charges for a property rented out for up to 5 years are approximately 2%, and 3% if the property is rented out for more than 5 but less than 10 years.

Terms & Conditions for Rent Agreement

An ideal rental agreement should cover the following clauses:

• Duration of the rent period
• Monthly rent
• Security deposit
• Penalty for late payment of rent
• Additional charges like maintenance, society, water, gas, etc to be borne by the tenant or landlord
• Provision of parking, if applicable
• Any damage or repair charges
• Rights of tenant
• Rights of landlord

Rent Agreement Online Registration

In case you do not have time to go ahead with the entire registration process offline, there is an option of registering your rent agreement online. This service is now very popular and comes at a very nominal charge.

• You need to fill in the required details on a pre-approved template drafted by legal experts.
• Submit a copy of your Aadhaar card with one more additional ID proof.
• Make the online payment, which includes stamp duty, registration charges, and service charge.
• Once approved, the service provider will initiate the legal formalities, and within a few days, your registered rent agreement will be delivered to your doorstep.

Advantages of Rent Agreement for Owners

Once you register the rent agreement online, the owner may use it as a protection if the tenant defaults in any way. It can be used successfully in a court of law until the agreement is registered. The stamp duty and the registration fee are included in the registration cost. According to Section 17 of the Registration Act 1908, if the lease extends to a period of at least 11 months, the arrangement must be registered.

Advantages of Rent Agreement for Tenants

Securing the tenant’s rights is the primary objective?? of registering a rent agreement. This may or may not include verbal disagreements, sudden eviction, unreasonable rent hikes, eviction of deceased tenant’s family, etc. The tenant can also benefit from the provision that defines that rent can only be raised in compliance with the agreement after one year and not as per the market rate or as per the whims of the landlord. Confrontations are common between landlords and tenants, no matter what part of the globe we might be living in. Some of the often-quoted tenants’ grievances are unannounced calls, overdue maintenance, and unreasonable guest policies. However, by getting a fool-proof rental agreement, most of these problems can be easily prevented.