Rent Agreement

What we’ll cover

  • About Rent Agreements
  • Rent Agreement FAQs
  • Rent Agreement Checklist

What is a Rent Agreement?

Rent Agreement is a legally binding contract between a property owner and a tenant. It sets the conditions under which the tenant may hold possession of the property for a certain period in exchange for rent. The document also makes provisions for other details like rent amount, duration, security deposit, maintenance, and other rules to be followed by the parties. This agreement, if well-drafted, will avoid any kind of dispute and will guarantee a smooth rental experience for both landlord and tenant.

When Can You Use A Rent Agreement?

  • When a tenant rents a house, flat or apartment for residential purposes, a rental agreement spells out the terms and protects both parties legally.
  • Used when renting office spaces, shops or buildings to clearly define the rent, term and terms of use.
  • Ideal for PGs or roommates sharing a flat—this ensures that everyone agrees on the rent share, term and other shared responsibilities.
  • For renting out the property on a monthly or weekly basis to travelers or temporary tenants, the terms of stay and damage clauses are clearly stated.

About Rent Agreement

Draft your Rent Agreement here quickly and easily to protect your rights as a landlord or tenant. Start creating now!

How to Write a Rent Agreement

A Rent Agreement is a formal, legal binding contract between a landlord (the “Owner”) and the tenant (the “Renter”), where both parties mutually agree to lease out a property on mutually agreed terms and conditions. Being the principal agreement between landlord and tenant, be it for residential or commercial purposes, a well-drafted Rent Agreement is vital to protect the interests of both parties. For reference, here are some commonly included clauses in a rent agreement along with a brief explanation of what they implicate:

Property Details

Give a very clear description of the rented premises, i.e., complete address, type of property (residential or commercial), number of rooms, furnishings, and any other amenities like parking or garden access.

Term of Tenancy

The agreement shall state the duration for which the premises is rented, which could be month-to-month, year-to-year, or for a fixed period of time (i.e., 11 months). It shall also mention the start date and end date, if any, along with the terms of renewal, if applicable.

Rent Amount and Payment Terms

Provide details about the rent to be paid every month and the late fee that is payable if the rent is late past the due date. Payment by Bank Transfer, UPI, or other means is usually mentioned. The rent may be subject to escalation after a fixed period, and such provisions would be applicable.

Security Deposit

Provides the amount of security deposit payable and refundable, which concerns safety against damages, dues, etc., to the site, along with the time limit and condition under which said deposit shall be refunded.

Maintenance and Repairs

Who shall be responsible for the maintenance and repair works—with the lessor or lessee? Detailed procedures are written in the Rent Agreement on how to report damage or required repairs and the timeframes within which such repairs should be carried out.

Utilities and Bills

Specify who pays for electricity, water, gas, internet, telephone, or other utility bills. If utility meters are shared, explain how the parties intend to share the costs.

Use of Property

Clarify that the property is to be used strictly as agreed upon (e.g., strictly for residential use). Prohibit the use of the premises for illegal or unauthorized purposes.

Subletting and Guests

Specify if subletting or long-staying guests are allowed. A clause must be added mentioning that subletting or keeping guests for more than X days is subject to the approval of the landlord.

Termination Clause

Specify the terms under which the agreement may be terminated by either party and when it may happen. It should normally mention a notice period (generally 30 days) and acceptable grounds for an early termination.

Entry and Inspection Rights

Mention the landlord’s right to inspect the property on giving reasonable notice to the tenant (generally 24 to 48 hours). This protects the interest of the landlord without interfering with the reasonable expectation of privacy of the tenant.

Restrictions

Put all restrictions here such as no smoking, no pets, or prohibition on loud music after a certain hour. These go a long way in building goodwill in an apartment complex.

Damage and Liability

The tenant shall be held responsible for damages above and beyond wear and tear. The lessor shall provide conditions for liability for damages done, intentional or negligent, as well as for compensation.

Legal Provisions

Bridge which laws apply to this agreement, such as Rent Control Act and local tenancy laws. Include the severability of any clause in case it is struck off by a court, and ways to resolve disputes between the parties and the jurisdiction in which any action shall be filed.

Signatures

The agreement shall be signed by both landlord and tenant and the dates indicated thereon. Where possible, two witnesses should also sign to confer greater weight to the agreement.

Registration of Agreement

Mention if the agreement is to be registered with the local municipal authority. In some states, it is compulsory to register agreements which are for a period exceeding 11 months.

By clearly including these clauses, your Rent Agreement will ensure transparency and protection for both parties. Customize the agreement according to your needs, and in case of confusion, have a legal expert draw it for you as per local legislation.

Rent Agreement FAQs

Creating a rent agreement online is one of the easiest and convenient tasks. Using platforms like Draaft, you can draft your agreement by entering basic details like the landlord and tenant names, rent terms, duration, and security deposit. After the draft is complete, the agreement can be digitally signed and downloaded or registered as per the necessity of the law.

First, the names of the tenant and the landlord should be mentioned in the rental agreement, belong to the property to be rented, rent amount, payment due dates, security deposit, duration of stay, maintenance terms, and rules of occupancy that include termination clauses. Such clauses provide a level of comfort and protection to both parties.

It generally comprises the title of the agreement, parties involved, description of the property, details of rent, term of lease, maintenance, and signatures. It should generally be printed upon a stamp paper deemed to be of proper value and ought to be notarized or registered depending on the local laws.

The difference primarily lies in time and flexibility. An agreement for leases is normally considered long term (11+ months to several years), and the agreements cannot be changed easily, whereas rent agreements are short term, generally for below 11 months, and flexible to renew and cancel.

In order to register the rent agreement near your location, visit the offices of the sub-registrar near your jurisdiction. Some of the States of India also provide an online registration facility for rent agreements via government portals. For this, you require documents including id proofs, address proofs, passport-size photographs, amongst others, and the duly signed agreement printed on the stamp paper.

Rent Agreement Checklist

Want to create a clear and legally sound rent agreement? This checklist is for you to ensure all fine details that form a rent agreement have been incorporated while drafting it online. Landlords or tenants may use this guide to make sure their agreement is accurate and valid for use. 

1. Include Full Party Details

Begin by entering the full names, contact numbers, and valid identification details of the landlord and the tenant, respectively. Next, include the complete address of the property. These details personalize your document and make it easier to identify who is involved.

2. State the Rent Terms Clearly

Write about the monthly rent amount, due date, method of payment, and late penalty fees so that no confusion or disputes occur during this period. You must also specify details about the security deposit, including the amount and the conditions that make it returnable.

3. Mention the Duration of the Agreement

Define the period of commencement and termination. Also, mention if it is renewable or will automatically terminate on the said dates, and under which terms. 

4. Include House Rules and Responsibilities

Enter various clauses of maintenance duties, utilities payment, visitor rules, and pet policies. Specify who handles repairs and what is allowed on the premises. With a well-defined set of rules, you will surely prevent the misuse of your property.

5. Complete with Stamp Duty, Signatures, and Witnesses

Use stamp paper of correct value as per your state regulations. The agreement should now bear the digital or manual signatures of the parties and witnesses of each party. Platforms like Draaft will take you through the whole process and can even help register your agreement once it is ready.

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