It is a legal document that not only prevents disputes but also provides legal protection.

Often people rent or take a house without an agreement, but when a dispute arises, then its importance is understood. Rent agreement is beneficial for both the landlord and the tenant, but the question arises that why is it always made for 11 months only?

Why is the agreement only for 11 months?

According to the Indian Registration Act (Registration Act, 1908), if a rent agreement is for 12 months or more, then it is mandatory to register it. Registration involves the cost of stamp duty and other legal formalities. To avoid this additional cost, usually an agreement for 11 months is made. This gives flexibility to both the landlord and the tenant. If for any reason the house has to be vacated or the rent has to be increased, then after 11 months the agreement can be made again with new conditions.

Why is rent agreement necessary?

Apart from being a legal document, a rent agreement is also an agreement that clarifies the rights and duties of the landlord and the tenant. Important things like rent amount, date of payment, period of stay, electricity and water expenses, responsibility for repairs are written in it.

While making a rent agreement, keep these 6 things in mind

• Rent amount and charges: The rent amount, payment date and any additional charges etc. should be clearly mentioned in the agreement.
• Terms of rent increase: The agreement should clearly state when and by how much the landlord can increase the rent.
• Notice Period: If the landlord or the tenant wishes to vacate the house before the stipulated time for any reason, then the notice period (eg. 30 days prior notice) must be mentioned in the agreement.
• Lock-in Period: If the agreement includes a lock-in period, then during that period neither the tenant can leave the house nor the landlord can evict him.
• There are no restrictions: Make sure the agreement does not contain any unreasonable restrictions, such as a no-pet clause or restrictions on eating habits.
• Security Deposit: The amount of security deposit and how and when it will be returned after vacating the house should be clearly mentioned in the agreement.

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These documents include documents like Aadhaar card, PAN card, voter card, ration card, driving license and passport. If we talk about all these, then Aadhaar card is the most used document in India.

More than 90 percent of the country’s population has an Aadhaar card. If any information is entered incorrectly in the Aadhaar card, then UIDAI gives you an opportunity to change it. If you change your home address and live on rent, then can you use the current agreement to change the address? Let us tell you what the rules say about this.

Can the address in Aadhaar be changed through rent agreement?

There are many people who do not have their own houses. They live in rented houses. And when the house has to be changed, then the address of the old house registered in the Aadhar card also has to be changed. But many people do not have any other documents at the new address. By using which the address can be changed in the Aadhar card. In such a situation, a question comes in the mind of the people whether the address can be changed in the Aadhar card by using the rent agreement. So the answer is yes. According to the rules, the address can be changed in Aadhar through the rent agreement.

but this thing is necessary

You can change the address in the Aadhar card without a rent agreement. But for that it is necessary that your rent agreement is a registered agreement, that is, the agreement will be valid only when it is registered in the sub-registrar office. You cannot change the address on the basis of a non-registered agreement.

What will be the process?

To get the address updated on the Aadhaar card, you will have to visit the official website of Aadhaar card https://myaadhaar.uidai.gov.in . After this, you will have to click on login. There you will have to enter your Aadhaar number and captcha code. After this, you will have to click on the update address section. You will have to upload the Registered Rent Agreement as supporting documents and pay Rs 50. After this, the address will be updated on your Aadhaar card. You will be able to track the progress with the tracking number given in the acknowledgement slip.

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Rent agreement is made only for 11 months

Rules have also been made for tenants in the Indian law. One of these includes the law related to rent agreement. Even though there are 12 months in a year, but under section 17 (D) of the Indian Registration Act, 1908, it is not mandatory to register a rent agreement or lease agreement for a period less than one year. This means that the landlord can make a rent agreement for only 11 months without any registration. That is, while giving a house on rent, landlords and tenants do not need to go to the sub-registrar office to register the documents and pay the registration charges.

Big role in dispute between tenant and landlord

According to experts, most of the laws made in India regarding rent are in favor of the tenants. In such a situation, if a property owner has a dispute with a tenant and he wants to vacate the property from the tenant, then it is a very difficult task for him.

This is how it comes in handy in case of a dispute:

Due to a small mistake, the property owner has to fight a legal battle for his own property for years. This is a major reason why a notarized rent agreement is made for only 11 months and it is legally valid. If a situation of dispute arises, then the agreement can be presented as evidence. In the Rent Tenancy Act, if there is a dispute regarding rent and the matter goes to the court, then the court has the right to fix the rent. Then the landlord cannot charge more rent than that.

You won’t have to visit the registrar’s office;

Another big reason or advantage of making an 11-month rent agreement is that stamp duty and registration fee is not required to be paid for the agreement for this period, if the rent agreement is made for a period of less than a year, then stamp duty payable on it is not mandatory. The 11-month rent agreement is in favor of the landlord. The rent agreement fee has to be paid by the tenant. Usually, a stamp paper of Rs.100 or Rs.200 is used to prepare the draft of a notarized rent agreement.

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If you do not do this, you may have to face problems. Actually, any rent agreement contains some important information including the rent amount, rent due date and agreement time.

Whether the information mentioned is included in the agreement or not Before signing any rent agreement, you must ensure that the rent mentioned matches the agreement. Apart from this, whether there is a description of what is included in this agreement or not. For example: whether the rent of the flat you have taken is inclusive of maintenance or not. Whether the details of the items provided in the flat are written in the agreement or not, what is the parking charge and how much is the electricity bill per unit etc.

Fare hike and agreement duration

After this, what is the timeline of the agreement. If the agreement is for a long term of 3 to 4 years, then how much percent will the rent be increased every year. Actually, people who buy a house under an agreement for the first time do not pay attention to these important aspects and later they have to face problems.

Notice or Lock in Time

Let us tell you that many times it happens that due to some personal reasons the landlord or the tenant has to break the agreement before the completion of the time. In such a case, the notice or lock in time should also be mentioned in the agreement. Let us tell you that usually the notice period is of one month, which is equally applicable to both the parties.

Bans or conditions

Let us tell you that some landlords impose many restrictions on the tenant. Such as not allowing to keep pets or parking in the society parking lot. These things should be discussed thoroughly before the agreement. However, the tenant can also object to unreasonable restrictions, such as not allowing to apply for passport during the tenancy, etc.

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In India, the Model Tenancy Act (Tenant Law), 2021, protects the interests of both landlords and tenants. It gives some rights to the tenant. The purpose of this law is to balance the rights and responsibilities of both parties, promote transparency and accountability. Let us tell you what rights the tenant has got in this law, using which he can protect his interests.

Tenants have many rights

Every tenant has the right to enjoy the rented property peacefully. In such a situation, the landlord cannot come to the house without any prior notice. The landlord can visit at the scheduled time only after the consent of the tenant.

Security Deposit

The tenant is entitled to get the security deposit back at the end after vacating the house or shop. The landlord cannot show any reluctance in giving it.

Hike in fare

The tenant can raise his voice against the landlord for unfair rent increase. Under the law, landlords will have to discuss and give notice before increasing the rent.

Terms of the Rent Agreement

The tenant can terminate his lease or rent agreement by giving the required notice to the landlord. The landlord cannot discriminate against tenants on the basis of caste, religion, sex, marital status or food.

Supply of essential services

Landlords cannot cut off essential services like electricity and water under any circumstances. Often, when the rent is delayed, the landlord starts treating the tenant in a way that is completely unfair. If the tenants feel that they are being harassed, they can file a complaint.

Withholding rent

If the tenant is facing any major problem or danger, he can stop the rent. However, for this the tenant has to give a valid reason and discuss it with the landlord.

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If you have been living on rent, you must have noticed that any rent agreement is only for 11 months. In such a situation, a question arises that why is the rent agreement only for 11 months? Why not for one year or just 10 months?

Rent agreement is called a written agreement between the owner of the property and the tenant in simple language for renting out the property. It contains the details of the buyer and the tenant. It also contains the date of renting the house and the time for which it is being fixed.

As per the requirements of the Indian Registration Act 1908, registration of a property on lease for one year is mandatory. Hence, to avoid the registration process and cost of stamp duty etc., the rent agreement is prepared for 11 months only.

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Section 17 (D) of the Indian Registration Act, 1908. According to this section, if any tenant and landlord make an agreement for a period of less than a year, then they do not need to get it registered. That is why people make an 11-month rent agreement to avoid registration fees.

However, the stamp duty is also less when making an 11-month rent agreement. But some states may have different rules for registering a rent agreement. Making an 11-month rent agreement is definitely a way to save registration fees, but it may reduce legal protection. Therefore, definitely take advice from experts.

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Soon a portal will be created to make the process of rent agreement easier. There will be a proforma of rent agreement on this portal. In such a situation, its registration process will become very easy for landlords and tenants.

Know what to do

After the portal is ready, the landlord and the tenant will be able to register the rent agreement themselves. For this, the proforma available on the concerned portal will have to be filled. In this proforma, the landlord and the tenant will have to fill all their information themselves. Also, the necessary certificates will have to be uploaded. After this process, the rent agreement will be registered online. The process of depositing the fee will also be online.

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Trial will be done in 4 cities

As a pilot project, the trial of this system will first be done in Lucknow, Prayagraj, Varanasi and Meerut. If this trial is successful, then this system will be implemented in the entire state. It is being told that if everything goes well, the Stamp and Registration Department can start the online process of rent agreement from next month.

Planning to reduce fees

The government is preparing to simplify the process of rent agreement and also make it cheaper. Till now, a fee of 2 percent is charged on rent agreement. This fee can be reduced to 1 to 1.5 percent of the rent. Let us tell you that in the current system, any landlord or tenant has to go to the court and get the agreement made on a stamp paper of Rs 100 and after this there is a separate registration process. In this process, more money is spent and time is also wasted. With the online process, people will get relief from all the hassles.

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There is a large section in the country who do not have their own house and they live in rented houses. At the same time, many people who leave their homes in small towns and go to other cities for jobs, they also live in rented houses. While taking a house on rent, there is a rent agreement between the landlord and the tenant. This is a kind of written agreement in which important things related to rent and house related arrangements are mentioned. If you are also a tenant, then while making a rent agreement, pay special attention to some things, so that you do not have to face any problem later.

Rent and Security

How much rent you will pay to the landlord every month and how much security you have deposited with him, make sure to mention these things in the rent agreement. Also get the rules related to returning the security written. So that everything remains clear between you and the landlord. Keep in mind that the agreement is an agreement between the landlord and the tenant, if the landlord has written his rules in it, then you can also get your things written in it. After signing, keep a copy of the rent agreement with you because it can help you in many of your tasks.

Also Read: Cash Deposit Limit: How much cash can I deposit in my bank account? Know these important rules, otherwise….

When will the fare increase

Decide with the landlord beforehand when he will increase the rent and by how much. Make sure to include this in your agreement as well. So that the landlord cannot increase the rent more than the decided ratio. Usually the rent of the house increases by 10 percent every year. If you want, you can agree to this or you can convince the landlord to increase the rent by a little less.

Repair and maintenance

The house you live in needs repair, maintenance and painting from time to time. In such a situation, who will bear this expense should be clearly mentioned in the agreement. Also, if any accident happens, who will compensate for the damage caused to the house? This should also be written in the agreement.

Which bills are mentioned on the agreement

There are many rules and conditions written on the rent agreement. Read them very carefully. Check if the landlord has mentioned any penalty for paying the rent late. Apart from this, you should also check about the electricity, water bills, house tax and facilities like gym, swimming pool, parking, club etc. and the payment for the same. That means keep in mind that only those bills should be mentioned on the agreement which you will pay to the landlord.

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This time has come the season of submitting investment proof in the office. Employees living on rent are submitting rent receipt along with investment proof. Along with this, rent agreement has to be submitted. Have you submitted this? If you have not deposited it yet then get it done quickly. Before getting this made, keep a few things in mind. Here we are mentioning those 5 things which are important to keep in mind.

When will the fare increase?

First of all decide how much rent you will pay every month. How much will the rent increase every year? If the annual increase is not mentioned in the document and the landlord will decide it in the coming few months, then this will be a better opportunity for you to negotiate. Generally, house rent increases by 10 percent every year. If it feels right to you then you can agree. The rental agreement is renewed after every 11 months. If the agreement is for more than 11 months then it is necessary to be registered.

You also need to understand the security deposit and its refund process in case of vacating the house. The condition for cancellation of the rental agreement is also written in this document. Notice period is also mentioned in it. It would be better if you also mention the mode of fare payment (cash, check or NEFT/RTGS/IMPS). This will save you from any dispute later.

What will happen if rent is paid late?

Check that there is no penalty for late payment of fare in the agreement. There should be a clear mention of the date of payment of rent. If any penalty is mentioned in the agreement, then you should try to pay the fare on time. Apart from this, you should also look at the electricity, water bills, house tax and facilities like gym, swimming pool, parking, club etc. and the payment for the same. Keep in mind that whatever charges you are paying are written in the agreement. Keep in mind what the previous maintenance charges were and whether the previous tenant has cleared all the bills or not. Before shifting to the house, meet the landlord and gather information about the past dues.

What should be checked in the house before making the rent agreement?

First inspect the house you are taking on rent to live in. Many people do not pay attention to small things, but it is important to see them. Check the walls, floor, paint, electrical items etc. Be sure to check whether the kitchen and bathroom fittings are in good condition or not. If something is bad or not right then definitely inform the landlord about it. Get it installed or repaired before shifting. The purpose of telling the landlord here is that you are not responsible for the damage.

If there is a need for repair and maintenance in the house, who will bear the expenses?

It should be clearly written in the agreement as to who is responsible for the regular maintenance and painting of the house. Once you shift into the house, there should be no dispute over it, so clear it beforehand. It contains many things ranging from old electrical wiring to taps and kitchen chimneys.

Also check that if any accident occurs, who will compensate for the damage caused to the house. There should be a clear mention in the agreement as to who is responsible for what type of loss. Also check whether the repair expenses will be deducted by you from the rent or the landlord will reimburse you.

Will you have to pay attention to other terms and conditions also?

Other terms and conditions are also written in the rent agreement. Therefore, read the rent agreement carefully. Check to see if there is anything else you need to know. Many landlords also mention restrictions on keeping pets or eating non-veg food along with coming late to the society in the rent agreement.

Also keep in mind whether the deal with the house you are taking on rent is with your landlord or someone else is involved in it. Verify documents like sale deed. Along with this, if it is necessary to take NOC from the housing society, then complete that process also. Also get it written down that what will be the procedure if the landlord wants to vacate the house in the middle of the agreement period.

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The landlord retains legal rights over his house, while the tenant does not have to spend on the maintenance of the house. This responsibility lies with the landlord. But, many times the rent agreement is made keeping in mind the interests of the landlord. This is not right. Leave and License Rental Agreement can be a solution to this problem. Let us know about this in detail.

What is Leave and License rental agreement?

This is an agreement between the landlord and the tenant. This includes the terms on which the property is let. These include the address, size and type of the house. Apart from this, monthly rent, security deposit, duration of the agreement and terms for terminating the contract are also included.

“The agreement needs to be registered,” said Sagar Kadam, partner, DSK Ligatar. If there is no agreement, the landlord can suddenly increase the house rent. The most important thing is that if there is no rent agreement, you cannot claim house rent allowance.

How should the rent agreement be?

The rent agreement should include a fixed date for payment of rent. It should also be mentioned what will be the penalty for delay in paying the fare. It should also be mentioned that the landlord may increase the rent after a certain period.

It should be clear in the rent agreement who will be responsible for paying the maintenance charges as well as water and electricity bills. Experts say that if a person is taking a house on rent, then it is important for him to read the agreement properly and understand it.

What precautions should a homeowner take?

The biggest worry of the landlord is that the tenant should not take possession of the house. Therefore it is necessary for the rent agreement to be registered. If not registered, it can be misused. Aditya Khadaria, co-founding partner, LX Eternal Practices, said that if the rent agreement is not registered, the tenant may refuse to vacate the house. Therefore, there must be a condition for termination of the agreement in the rent agreement.

Framing of the rent agreement is very important

Most lawyers who frame rent agreements have a ready-made format for it. But, this does not mean that you cannot change its provisions. You and the landlord can mutually agree to include such terms and provisions in the agreement that are beneficial to both of you.

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However, within 3 days of moving into the house, there was a problem with the RO and inverter. When the mechanic was called, it was found that everything was old, there was a lot of debate between the tenant and the landlord on this matter.. and after just 6 months, the landlord Tenant Sneha was given a notice to vacate the house even though her rent agreement was for 11 months.

Now the question arises that even though the rent agreement is for 11 months, can the landlord ask the tenant to vacate the house even before that? Can the tenant stay in the house for 11 months despite the notice? Let us know from the expert..

Nishant Rai, civil cases lawyer in Delhi High Court, says that rent from property is a better source of income in Tier-1 and Tier-2 cities of the country. Both residential and commercial properties give good rents.

Building a house and taking it on rent is more common but the biggest thing is that in India there are not many rules and regulations regarding tenants and landlords. Even in contract law, there are basic things regarding landlord and tenant, whereas hundreds of issues of dispute arise between these two.

Since in India the agreement between the landlord and the tenant is based on mutual understanding, yet for some time now rent agreements have started being made in tier two cities including Delhi-NCR. It lasts for 11 months and has many conditions that both parties agree to. In this everything is written, from advance rent to security deposit, maintenance charges, security return, fare increase to repairs of wear and tear.

Can the landlord evict before 11 months?

Nishant says that this rent agreement is for 11 months, according to which everything between the landlord and the tenant is governed. Only according to this the landlord can increase the rent, not before that. It also happens that if the landlord has to vacate the house or the tenant has to vacate, then he can ask for eviction by declaring his emergency and giving a notice of one or two months. However, if eviction is being done forcefully after any dispute, then the tenant can also complain to the landlord on the basis of this agreement.

If there are conditions in the rent agreement..

Some landlords are smarter and include a locking period in the rent agreement, like 6 months. It is written in it that the landlord or tenant is free to vacate. If there is any such condition in the rent agreement and the tenant and the landlord have signed and accepted it, then it must be accepted. No specific steps can be taken in this regard in civil case, but if there is any other problem then the tenant can take help of police and law.

Can the associations intervene?

Dr. NP Singh, former chairman of Federation of Noida Residents Welfare Association, says that only they know what kind of agreement has been reached between the tenant and the landlord. Residents Welfare Association or Apartment Owners Associations do not interfere in this. Everything related to rent, security amount, agreement is done with mutual consent of both. However, if a dispute escalates and a party approaches the RWA or AOA, then like an arbitrator, they can intervene and take steps to settle the matter.

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There are two parties in a rent agreement. In this, the first party is the owner/landlord of the property, who is giving his property on rent. And the second party is the tenant who is the person in possession/living at the rented property till the end of the contract. A rent agreement is also called rent deed and lease deed. It contains basic details of the residential property, property owner, tenant, rental period and amount. The rent agreement is usually in writing.

This is prepared on stamp paper. It is important to make a rent contract as it helps in preventing disputes between the landlord and the tenant. It also insures the safety of the property for the landlord. And also protects the tenants from having to deal with any unwanted demands from the landlord. There are two types of rental contracts in India. There is a lease agreement that lasts for a minimum of 12 months. It is governed under the rent control laws made by the state government. And the second is a lease and license contract for up to 11 months which does not come under the rent control law.

What happens in the rent agreement?

A rent agreement contains the names of the landlord and the tenant and their agents, along with details of the property. The rent agreement contains the rent amount and due date of payment, grace period and late fees. Along with this, the method of payment of rent is also mentioned in it.

The amount of security deposit is also mentioned in it. The details of the utilities provided by the landlord and the fees for these are also written in it. Mentions whether the tenant is entitled to use the facilities on the premises such as swimming pool, security system etc. Along with this, rules like pet rule, noise rule and penalty for violation are also written in the rent agreement. Details about the parking space to be used for parking and procedures for handling repair requests and emergency requests are also mentioned in the rental agreement.

Terms included in the rent agreement

Rent

In return for the property given on rent, the tenant makes monthly payments to the landlord. This is called rent.

Deposit

The required amount of deposit remains in effect until the end of each rental period. After the end of its period, the landlord returns it to the tenant.

Terms of Use

The details of terms and conditions regarding the use of the property are mentioned in the rent agreement.

Utility

How many utilities are there in the premises and how many types of utilities can the tenant use under the rent? Its details are mentioned.

insurance

It is mentioned in the commercial rent agreement. Under this, the tenant has to get the property insured.

Repair and maintenance

Whether the landlord or tenant is responsible for the repair and maintenance of the property is mentioned in the rent agreement.

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The most important thing is that the rent agreement is made only for 11 months. This agreement is never made for one year. But do you know why the rent agreement is made only for 11 months and what is the reason behind it?

Why is an 11 month rent agreement made?

Proper rules have been made in the law for rent agreements in the country. It is necessary to make a rent agreement under Section 17 (D) of the Indian Registration Act, 1908. However, this agreement has to be made for at least one year and it is not necessary to register a rent agreement or lease agreement for a period of less than one year. In simple language, your landlord can make a rent agreement only for 11 months.

Due to even the slightest mistake, the property owner has to fight a legal battle for his own property for years. Because of this, a rent agreement of 11 months is made. According to the Rent Tenancy Act, if there is any dispute between the landlord and the tenant regarding the rent, after which if the matter reaches the court, then the court has the right to fix the rent, so that the landlord can pay more. Couldn’t pay the rent.

If a landlord enters into a rent agreement for 11 months, then he does not have to pay stamp duty and registration fees, because the stamp duty payable on it is not mandatory and this also saves the landlord’s expenses. Drafting a notarized rental agreement for 11 months is legally valid. In case of dispute, these agreements can be presented as evidence. To prepare such fare draft, stamp paper of Rs 100 or Rs 200 is used.

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At the same time, many people have to go from one city to another for employment. In such a situation, they are looking for a house to live on rent. In such a situation, if you have given your house on rent or have taken a house on rent, then you must have got a rent agreement made. But the lawyer with whom the rent agreement is made, it is made for 11 months only.

If you do not get the agreement made, then you can get into trouble going forward. The terms of the tenant and the landlord are written in this agreement, which both the parties have to sign after agreeing. The details of rent increase, repairs, security deposit, maintenance and other payments are mentioned in the rent agreement.

Registration of rent agreement is necessary

If the property is to be given to the tenant for more than 11 months, then in such a situation the properties have to be registered. Registration is not required for agreements of less than 11 months. It is necessary to draft the rent/lease agreement and get it registered at the nearest sub-registrar’s office.

There are many benefits of registering the rental agreement. Legally, if there is any kind of dispute in the future, then both the parties are protected by this agreement. On the other hand, landlords usually get an agreement made for 11 months only. After this it is expanded again.

Apply online like this

Online registration facility has been provided in some cities and states of the country. You can register online in Maharashtra. For this, people/landlords have to create a profile by visiting the e-filing website (https://efilingigr.maharashtra.gov.in/ereg/). After creating the profile, the owner has to give complete details of the property. In this, all the information like user’s village, tehsil, whether the property is commercial or residential has to be entered.

How to register?

After making the rental agreement, two witnesses are required for registration between the owner of the property and the tenant. For this one has to go to the register office in person.

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A rental agreement is a contract signed between the owner of the property and the tenant giving the right to occupy the residential premises for a specified period of time. It is important document by both the parties through rent agreement registration. While it acts as legal evidence in case of disputes. There are many benefits if you register the rent agreement.

Why registration of rent agreement is necessary

In such times when disputes between landlords and tenants are increasing rapidly, it is necessary to draft the rent/lease agreement and get it registered at the nearest sub-registrar’s office. Registering the rental agreement legally protects the rights of both the parties regarding future disputes.

Disadvantages of not registering the rent agreement

If the rent agreement is not registered, then the provisions of the Rent Control Act of the Central Government as well as various State Governments are not applicable. If the tenant has to give the property for more than 11 months, then all the properties have to be registered. Registration is not required in the agreement of less than 11 months.

Can rent agreement be registered online

Some cities/states provide the facility of online registration of such documents. Rent agreement should be either printed on stamp paper or e-stamp should be pasted on the first page. Online registration of rent agreement is possible in some states like Maharashtra. For this, people/landlords have to create a profile by visiting the e-filing website (https://efilingigr.maharashtra.gov.in/ereg/). After creating the profile, the user has to enter the property details like village, taluka, property type, locality, address and other available information.

How to Register Rent Agreement

Prepare a rental agreement outline with important clauses regarding security deposit, rent and maintenance. For registration, both the owner and the tenant of the property are required to be physically present at the sub registrar’s office along with two witnesses. Registration of rental agreement through an agent is not permitted.

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If you are also going to rent a house, then you should take special care of some things while making a rent agreement. To rent or give a house or house, you need to get a rent agreement made. If you do not get the agreement made, then you can get into trouble going forward. The terms of the tenant and the landlord are written in this agreement. Which both the parties have to sign after agreeing.

In this, information about rent increase, repair and maintenance and other payments is written. Come, let us tell you which 8 mistakes should not be made for making a rent agreement.

Do not do these 8 mistakes

1. Avoid the wrong tenant- Before renting a house or any property, do a thorough research about the tenant. Hiring the wrong tenant can land you in trouble in the long run.
2. Decide the rent thoughtfully- If you have a house, then you must have spent on its maintenance. In such a situation, you should pay attention that your tenant should also keep these things properly and accordingly you should fix the rent as well.
3. Set up tenancy in a professional manner- Tenancy is not a hobby, it is a business. So you should do it properly. For this, hand over the property to the tenant only after making you a rent agreement in a proper manner.
4. Tenancy period- Legally normal tenancy is of 11 months. You should decide the time wisely.
5. Termination and notice- If the tenant does not comply with the terms given in the agreement, the landlord can ask him to vacate the property and terminate the agreement. At the same time, one month’s time has to be given as a notice to the tenant and the landlord to vacate the house.
6. Lock-in period- Under this condition the landlord does not allow the tenant to leave the property outside the city without informing. That is, if the tenant has to vacate the house and go to another city, then the landlord has to inform him beforehand.
7. Payment- The landlord has to fix a fixed date to pay the rent. On the same date the tenant will have to pay the rent to the landlord.
8. Default Clause- Under this rule the landlord can decide his own conditions and penalty.

The post Rent Agreement Mistakes: You should not do these 8 mistakes while preparing the rent agreement first appeared on Rightsofemployees.com.

The Karnataka High Court has given an important decision regarding the increase in property rent. The High Court has said that if the rent agreement made for more than 11 months is not registered, then the landlord is not entitled to increase the rent. There is no need to register the rent deed up to 11 months. Reversing the lower court’s order, the High Court rejected the demand for rent hike and arrears by the property owner.

Rent agreement is a written agreement between the tenant and the landlord in which the concerned house, flat, room or any commercial premises etc. is given to the tenant for a fixed period. This agreement contains the details of rent, condition of the house, address and terms and conditions related to cancellation of rent advance. Under Section 17(1) of the Registration Act, 1908 the tenancy is required to be registered if the period is more than 11 months.

This was the case

According to media report, Srinivas Enterprises had given the property to Nedungadi Bank on a monthly rent of Rs 13,574. The tenant had also deposited Rs 81,444 as security deposit. Nedungadi Bank was the first private bank in South India. It was later merged with PNB. In 1998, the tenancy was renewed for another 5 years with a monthly rent of Rs 23,414.

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The rent agreement also states that the tenancy can be extended up to 5 years with a 20% increase in the rent every 3 years. In 2006, Srinivas Enterprises filed a civil suit to recover the rent as per the lease agreement. PNB argued that Srinivas Enterprises was not entitled to do so as the rent agreement was neither registered nor properly stamped. But the lower court did not accept the arguments of PNB and in the year 2018 ordered PNB to pay Rs 5.8 lakh to Srinivas Enterprises as rent and rent arrears.

PNB challenged in the High Court

PNB challenged the decision of the lower court in the High Court. Reversing the decision of the lower court, the High Court said that the rent agreement was made for more than 11 months. That’s why it was necessary to register it. But, this was not done. Therefore the property owner is not entitled to increase the rent.

Also, according to Section 52 of the Limitation Act, a suit has to be filed to recover rent arrears due for 3 years. But, the plaintiff did not do so. Therefore he is not entitled to appeal for arrears.

The post Rent Agreement- Rent agreement is not registered, so can the landlord increase the rent? Know what is the decision of the High Court? first appeared on Rightsofemployees.com.