Rent agreement in India: what to include, the 11-month rule, stamp duty and registration

What to include

A good agreement covers at least:

• The parties: full names, addresses and ID of the landlord and every tenant.
• The property: the full address, the flat, shop or room, and what comes with it, such as parking, furniture or appliances.
• The term: the start date and how long the agreement runs.
• Rent: the monthly amount, the due date, how it is paid, and any late fee.
• Security deposit: the amount and what may be deducted at move-out.
• Rent increase: how much and when, for example 5% every year.
• Lock-in and notice: the minimum period before either side can end it, and the notice needed after that, often one or two months.
• Bills and maintenance: who pays electricity, water, gas and society maintenance.
• Use and repairs: residential or commercial use, whether subletting is allowed, and who handles which repairs.
• An inventory: fittings and furniture handed over, with meter readings on the first day.

Why most agreements are for 11 months

Section 17 of the Registration Act, 1908 makes registration at the sub-registrar's office compulsory for leases from year to year, for any term of more than one year, or reserving a yearly rent. An agreement for 11 months at a monthly rent falls outside those three, so the central Act does not require it to be registered, which is quicker and cheaper. Landlords and tenants then renew it every 11 months, usually with the agreed increase.

State law can still require registration whatever the length, so check your state before relying on the 11-month route. Two examples follow below.

Stamp duty and registration

• Stamp duty applies to rent agreements in every state, at rates set by that state. It is usually paid through an e-stamp certificate or stamp paper bought before signing. An agreement without proper stamp duty can be refused as evidence until the duty and a penalty are paid.
• Notarising a short agreement is common, but it is not the same as registering it, and it does not replace registration where the law requires it.
• Maharashtra requires every leave and licence agreement to be registered, whatever its length. Online e-registration makes this a short process.
• Tamil Nadu requires every tenancy agreement to be registered with the Rent Authority, whatever its length. See the state's tenancy portal.
• The Model Tenancy Act, 2021 asks for a written agreement, and for the landlord and the tenant to inform the Rent Authority of it together. It is a model law: what applies depends on the law your state has actually passed.

Police verification

Many city police forces ask landlords to submit tenant verification, usually a form with the tenant's ID and a photo, often online. Keep a copy with the agreement.

Renewing without a dispute

1. Start a month or two early, so neither side is surprised by the end date.
2. Apply the increase the agreement already set out, rather than renegotiating from scratch.
3. Carry the deposit forward in the new agreement, and note any change to it.
4. Sign and stamp the new agreement before the old one ends, so there is no gap.

Example

How Tenowa handles it

Tenowa keeps each agreement with its tenancy: the length, the lock-in, the notice period, the deposit and the scheduled increases. It raises the rent from each anniversary in the ledger, shows the next increase before it happens, and flags when an agreement is due for renewal. During the trial or with a subscription, the signed agreement, ID proof and police verification can be kept on the tenant's record and opened from your phone.

Common questions

Is an unregistered rent agreement valid?

An 11-month agreement at a monthly rent does not need registration under the central Registration Act, but some states, such as Maharashtra and Tamil Nadu, require it whatever the length. Where registration is not required, a properly stamped agreement can be relied on. A lease that should have been registered may not be accepted as evidence of its terms.

Who pays the stamp duty?

Whoever the two sides agree on. In practice the tenant often pays it, or it is shared.

Can the rent agreement be made online?

Yes. E-stamp certificates can be bought online in many states, and some states, such as Maharashtra, allow online registration.

What happens when an 11-month agreement ends?

Renew it in writing, usually with the increase the old agreement set out. If the tenant stays on and the landlord accepts rent without a new agreement, the tenancy can continue by "holding over" under Section 116 of the Transfer of Property Act, subject to the agreement and your state's law, but on terms that are less clear for both sides.

This is general information, not legal advice. Tenancy law is made by each state; check your state's rules and your agreement.

See how Tenowa tracks agreements and increases →