Rent Agreement: Every year in India, lakhs of people rent houses in new cities for work or studies. In such a situation, a rent agreement is very important to maintain a good relationship and clarity between the landlord and the tenant.
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.
