Rent Agreement Format in India (With Sample)

Most rent agreements in India are two or three pages long and get signed in a hurry, often on the day the keys change hands. Then a year later there is a fight over the deposit, the notice period or who pays for a broken geyser, and the agreement says nothing useful.

This guide covers what a rent agreement should say, why so many run for 11 months, how stamp duty and registration work, and gives you a format you can adapt.

Rent agreement, lease deed and leave and licence

• Rent agreement is the everyday name for a short residential tenancy, usually 11 months.
• Lease deed is the term used for a longer lease, often for several years and for commercial property. A lease is a transfer of the right to enjoy the property under Section 105 of the Transfer of Property Act, 1882.
• Leave and licence is common in Maharashtra. It gives permission to use the property without creating a tenancy, which makes it easier for the owner to get the property back.

What the document is called matters less than what it says. Courts look at the terms to decide whether it is a lease or a licence.

Why most rent agreements are for 11 months

Under Section 107 of the Transfer of Property Act and Section 17 of the Registration Act, 1908, a lease of immovable property from year to year, for more than one year, or reserving a yearly rent can only be made by a registered document. Registration means a visit to the Sub-Registrar, registration fees and, in most states, higher stamp duty.

An 11-month agreement stays under the one-year line, so in most states it doesn't have to be registered. That is the whole reason for the number. It is a practical choice, not a legal requirement, and there is nothing wrong with a registered agreement for a longer term if both sides want that security.

State rules can override this. In Maharashtra, Section 55 of the Maharashtra Rent Control Act, 1999 requires every leave and licence agreement to be in writing and registered, whatever its length. Some states that have adopted laws based on the Model Tenancy Act, 2021 also require the agreement to be reported to a Rent Authority. Check the rule where the property is.

Stamp duty

A rent agreement has to be printed on stamp paper, or stamped, of the value your state's Stamp Act sets. The amount usually depends on the rent, the deposit and the length of the term, and it varies a lot from state to state. Most states now use e-stamp paper, which you can buy online or from an authorised vendor.

Don't skip this. An unstamped or under-stamped agreement can't be used as evidence in court until the missing duty and a penalty are paid. If there is ever a dispute, that is the moment you will need it.

What a rent agreement should cover

1. Names, ages and addresses of the landlord and the tenant.
2. The full address of the property, and what comes with it, like parking or a store room.
3. The term, with the start and end dates.
4. The monthly rent, the due date and how it is paid.
5. The security deposit, and when and how it will be returned.
6. Any increase in rent on renewal.
7. Who pays electricity, water, gas, maintenance and society charges.
8. Who handles which repairs. Small repairs usually fall on the tenant, structural ones on the landlord.
9. What the property can be used for, residential or commercial.
10. Whether the tenant can sublet. Usually not without written consent.
11. Any lock-in period, and the notice period for ending the agreement.
12. The landlord's right to inspect, with reasonable notice.
13. A list of fittings and furniture, with their condition.
14. Signatures of both parties and two witnesses.

Rent agreement format

Change the terms to fit your deal. A commercial lease, a longer term or a property in a state with its own tenancy law will need more than this. Law365 can draft a version for your state and terms in a few minutes. See how AI legal drafting works.

Signing and registering

• Both parties sign every page, and two witnesses sign at the end.
• If the agreement needs registration, both parties go to the Sub-Registrar's office for the area where the property is, with ID proof and the witnesses. It has to be presented within four months of signing. Several states now allow online registration of leave and licence agreements.
• Each side keeps an original, or a certified copy of the registered one.

What if a lease that needed registration isn't registered?

Under Section 49 of the Registration Act, an unregistered document that had to be registered can't be used as evidence of the lease and its terms. It can still be used for a collateral purpose, like showing the nature of possession. In practice, the tenancy is then treated as month to month, which either side can end with 15 days' notice under Section 106 of the Transfer of Property Act. The long term you agreed on doesn't protect you.

Police verification

Many cities and states require landlords to get their tenants verified by the local police, and failing to do so can lead to a fine. Most state police websites have a form for this. Do it as soon as the agreement is signed.

Security deposit

There is no national cap on the deposit for an ordinary rent agreement. The Model Tenancy Act, 2021 suggests a cap of two months' rent for residential property and six months' for non-residential, but it applies only in states that have passed a law based on it. Elsewhere it is whatever the two sides agree, and ten months is common in cities like Bengaluru. Whatever the figure, write down how and when it will be returned.

Questions people ask

Landlord refusing to return the deposit? A consumer complaint won't usually work for a private landlord, but a legal notice followed by a civil suit will. The limitation calculator tells you how long you have to sue.

This is general information, not legal advice. Check the bare Act, your state's stamp and tenancy rules, and speak to a lawyer about your own case.