Tenure of Rental Agreements

Tenure of Rental Agreements

Rules are policies and instructions for accomplishing something exemplary for everyone. In many states of India, it is obligatory to register the leave and claim for a rental period of more than eleven months.

A rental agreement is necessary for those people; who are trying to rent properties or desire a means of residency in a large municipality. The written agreement specifies the terms and conditions depending on the description of the particular property.

The rent deals usually get prepared for eleven months in writing to skip the tedious duration of registration. Sometimes, it’s optional if the rental span is less than or equal to eleven months.

If you ever set your property on rent, you must have signed a rent contract. Have you ever questioned; why most rent agreements are for 11 months? Let’s find out and vanish the confusion.

How to Execute a Valid Rental Agreement

A rent agreement is a document that includes all the duration and requirements of the property owner fixing at the time of renting the property. It is the legal bond between the two parties and declares their separate duties concerning the agreement. The declaration is to be importantly signed by both parties.

As per the registration act 1908, a registered agreement is admissible in a court; if the rental agreement is for 12 months or more. If it is less than 12 or 11 months, drawing and signing the contract on a stamped document will be lawfully valid.

The tenancy agreement is the most popular bond in India for about an 11-month duration. These accords do not need registration due to their concise length.

There are two types of rental agreements:

Long-term leases

These agreements get signed for residential purposes, which feature a lump sum deposit instead than a rental revenue payment, and are duly notarised.

Leases of business property

It is a deal between landlords and a businessman or two firms, and they do not have a set configuration.

Scopes of a Rental Agreement

A regular rental agreement might include the following:

  • Name of the tenant, landlord, and their individual
  • Complete details of property
  • Rent payments, fee deadlines, grace spans, and late expenses are all recorded.
  • Methods of rent payment
  • Before the deal expiration date, a tenant must know the procedure for ending the contract.
  • Utilities furnished by the owner, the rent gets computed based on the landlord’s charge.
  • On-site facilities for a renter, such as pool and security, are also added to the payment.
  • Tenants must understand rules and policies regarding animals, noise, and the outcomes of harming them.
  • Identification of the general parking areas, including any established spaces
  • How to operate tenant repair demands and how to make trouble requests.

Documents Required for Registration of a Rental Agreement

The following documents provided by the owner, tenant, and spectators for the rental agreement to be registered are:

  1. Legal proof that the rental property has an owner.
  2. Records of land, like taxation receipts for the rental property
  3. Passport-size photos of each party and the number of witnesses involved
  4. Address proof of both the parties, such as Aadhar card, passport, pan card, etc.
  5. A route diagram for the rental property with proper dimensions of the land.

Consequences of Security Deposits

In India, the tenant must provide an advance or security deposit at renting time, which gets paid back after the lease termination. It varies from 2 or 3 months to as much as ten months of rent. This warranty gets signed together with a stake deposit.

The landlord may utilise a part of the security assurance to protect any impairments the renter yields to the property, including those to the electrical system, furnishing, and devices.

At the termination time of the contract, the property owner gets required to revive the remaining security deposit to the lodger after deducting the number of damages.


Providing unwritten contracts with document support is always a good practice for both parties. The tenant and property owner must understand the property agreement documents in detail. Before signing a rental agreement, if necessary, pursue legal guidance. Long-term leases must follow the rules and tight rent authority laws.

In India, rental control regulations prevent property owners from overcharging renters and shielding tenants from unfair displacements. The renter must keep knowing that the documentation would serve as safety and security in the event of a dispute. One must have a rental agreement to avoid conflicts and pay the monthly rent as per the deal.


What are two types of agreement?

Lease and license agreements are generally for 11 months, while lease contracts are for 12 months.

How do you validate a rental agreement?

To validate the agreement, both the tenant and owner ask to sign the bond in the presence of two people who are non-beneficiaries of the property and will Sign the assurance documents as viewers.

Is 11 monthly rent agreement valid for GST registration?

As per Section 17 of the Registration Act 1908, a lease deal for more than one year has to be registered.

How can you evict a tenant without a rental agreement in India?

The tenant has to settle monthly rent, and the renter is liable to give at least 15 days of notice period to the owner and has to leave the property within this duration only.

What if the rent agreement expires in India?

The tenant has to leave the occupying property legally, but the landlord and renter both can agree to continue the agreement further.

Can a tenant cancel the rental agreement?

Unless the owner has permitted the lease agreement in some way, the renter can withdraw the lease agreement earlier without being in breach of the contract agreement and won’t have to pay the damages.