Rent Agreement | Model Tenancy Act | Rules | Importance | Validity | Coverage | The Format | Documentation | Stamp Duty | Finer Details | T&C | FAQ
Are you looking to get a house for rent? Worried about the ideal 11 months rental agreement format and wondering where to scoop up all the information?
Well, you have come to the right place as we will be shedding light on the detailed aspects of 11 months rental agreement format. There are several things we will be talking about including but not limited to the rent agreement regulations in India, the documentation required, the 11 months rental agreement format, the terms and conditions, the validity of the agreement, the model tenancy act and a whole lot more.
So, you can go through the details and grasp the complete idea of what the agreement is all about, and thereby go around and get your favourite home on rent and live the life you have dreamed of.
What Is A Rent Agreement?
As the name implies, the rent agreement is a legal document that a landlord and a tenant sign. This document aims to authenticate the tenancy, break down the details associated with the lease, and list the terms and conditions as well. The rules listed in the agreement are final and binding to both the parties involved.
The Model Tenancy Act
The underlying aim of creating The Model Tenancy Act was to ensure that the agreement ends up benefitting both the parties involved.
As per the details by the Union Housing Secretary, the policy is all set to replace the current laws on rental housing and it will cover as many as one crore units that are now a part of the rental housing market in India.
Several listed provisions are a part of this act and these should act as the guiding principles to help the two parties create a befitting agreement. A very important point that needs to be added here is that all the existing rent agreements won’t conform to the model tenancy law. If there is any dispute related to the existing agreement, they will be dealt with keeping the old laws in mind and the Model Tenancy Act won’t apply to them.
The Rules For The 11 Months Rental Agreement Format
As per the draft Model Tenancy Act of the Union Government, the tenant must sign the agreement with the landlord. This document should underline the terms and conditions.
Owing to the massive popularity of rental properties, the scope for rental housing has been seeing a huge push. Ever since the Union Cabinet approved the Model Tenancy Act, 2019, a lot of Indian states are working to create rental policies that are aligned keeping the future in mind. The focus is heavily on promoting this form of agreement housing in different parts of the country.
To put things into better perspective, let us shed more light on what is the Model Tenancy Act.
The Importance Of Eleven Months
Some people often wonder about the fuss about sticking to the 11 months rental agreement format. Let us get down to the basics of it.
When the agreement is executed for 11 months, a lot of red herring and rental regulations can be avoided. Along with this, an 11-month period does not attract any stamp duty and related charges. It also doesn’t warrant the need for any registration. Each of these processes comes at a cost and the cost needs to be borne by the tenant.
When thought of from the perspective of the landlord, the process is cumbersome as well. As soon as the rules of the Model Tenancy Act come into play, the landlord will have to shoulder even more responsibilities.
The moment the rent period stretches to 12 months, a lot of laws will come into place and sometimes it is too complicated for both the parties involved. This is the reason, the rent duration is often kept to 11 months regardless of how long the landlord may be choosing to rent out his place. To prevent such complications, agreements are rather renewed after eleven months instead of choosing to have an agreement for a longer period.
The Legal Validity Of 11 Months Rental Agreement Format
In a lot of cases, it so happens that the landlord and the tenant decide to opt for a verbal agreement rather than register the agreement. This is mainly done to evade cost as both the parties need to pay a registration charge, the moment they decide to register the agreement.
As a part of the agreement, the landlord also needs to report his overall rental income. Sometimes, they do not want to do so and tend to steer away from such binding legal agreements. However, it is important to note that having a rental agreement sans registration is completely illegal and can land both parties in a legal mess.
Until and unless the agreement is registered with the sub-registrar’s office, it will fail to have a validity of any kind. Once the agreement has been drafted after duly discussing the points, the file should be printed on stamp paper.
Two witnesses are required during the signing phase of the document and this process should be carried out at the sub-registrar’s office. Before this, you must pay the fee for it.
After the draft law has been implemented, the states are likely to set up rent authorities in the city. After this, the landlords and the tenant need to be present before the authority and will thereby have the agreement registered.
If you are wondering what renting properties would fall under the Modern Tenancy Law, let us guide you through.
All residential and commercial properties would fall under this law. An important clause to know is that for the rules of this agreement to be applicable, the period needs to exceed a minimum of eleven months. If the duration of the agreement is anything less than 11 months, the rules shall fail to be applicable. In case of a dispute, neither the landlord nor the renter will be able to quote the rules of this law.
The 11 Months Rental Agreement Format
Here are the 11 months rental agreement format that you need to adhere to make sure you stick to the rules and regulations meticulously.
This rent agreement is made on this __________ (date) by ________________ (name of the landlord) S/o _______________ (father’s name of the landlord), Address: ___________________________________________________ (residential address of the landlord). Hereinafter called the Lessor/Owner, and first party
_____________________________ (Name of tenant), called lessee/tenant, or second party
The expression Lessor/Owner and the Lessee/Tenant shall mean and include their legal heirs successors, assigns, representatives etc.
Whereas the first party is the owner and in possession of the property No: _______________________________________________________________________________________________ (address of rented property) and has agreed to let out the said property to the second party for a monthly rent of Rs. ______/- (in words) per month.
Now This Rent Agreement Witness As Under:
That the second party will have to pay Rs. ______/- (in words) as monthly rent, which does not include electricity and water charges.
That the second party shall pay one month rent in advance to the landlord that would be further adjusted in the monthly rent.
That the second party shall pay the water and electricity charges on the basis of the consumption to the landlord/owner.
That the second party shall not lease the property to a subtenant under any circumstances without the consent of the owner/landlord.
That the second party shall follow all the rules and regulations, by-laws set by the local authorities in respect of the leased property and will not get involved or do illegal activities in the leased property.
That this rent agreement is granted for a period of eleven (11) months starting from ___________, and this contract can be extended further with the mutual consent of both the parties.
That the second party shall not be permitted to do a construction in the rented premises. Besides, he/she could do the installation of temporary decoration, wooden partition/cabin, air conditioners etc. without seeking the permission of the landlord.
That the second party is not allowed to make any alteration in the rented property without the written consent of the owner.
That the second party will have to allow the landlord or his authorized agent to enter in to rented premises for its inspection or general checking for any repair work, if needed.
That the second party shall keep the premises clean.
That the second party shall bear the cost of day to day minor repairs.
That this contract/agreement could be revoked before the expiry of this tenancy period by serving one month prior notice.
That both the parties have read and understood this agreement and have agreed to sign the same without any pressure from any side.
In WITNESS WHEREOF
The landlord and the tenant have hereunto subscribed their hand at ______ (place) on this the _____________ (date of rent agreement) year first above mentioned in presence of the following witnesses.
___________ (name of the landlord) _________________ (name of the tenant)
For any agreement, it is very important to have all the documents handy. Here, we will list the key documents that are required for the sake of adhering to the 11 months rental agreement format.
For The Tenant
Here is the list of documents that the tenant needs to prepare for the registration
- The Aadhar card
- Two photos- passport size
- Voter ID card
- Passport, if the tenant is not an India
For The Landlord
Here is a list of the documents the landlord needs to prepare for the registration.
- The Aadhar card
- Two photos- passport size
- ID proof (it can be the driving license, the passport, or even the voter card)
Each of these documents is mandatory and one should make sure that they have it ready when they fill the 11 months rental agreement format and opt to have it registered.
The Stamp Duty
When you choose to register the rent agreement, you will have to pay stamp duty. The actual price is going to vary based on the city you live in. Make sure to check the details of your current state before choosing to pay the stamp duty.
You pay the amount by buying a stamp paper of the said value.
For instance, those who stay in Delhi and have a lease agreement for a period of up to five years, need to pay the stamp duty that is equivalent to 2% of the average annual rent.
In Noida, those who have rent agreements spanning a period of up to 11 months, need to pay 2% of the annual rent as stamp pay.
In some of the states, you will find that there is a provision for the e-stamping facility as well. This can be very convenient for those who don’t want to go through the whole ordeal of physically buying the stamp paper.
Let us walk you through the whole process.
You will need to first log on to the official website of Stock Holding Corporation of India.
Check if your residing state offers the facility of e-stamping. Currently, the states that offer this provision are
- Delhi- NCR
- Uttar Pradesh
- Himachal Pradesh
- Tamil Nadu
Now, follow the steps on the screen and have the stamping done in no time.
The Finer Details
The standard 11 months rental agreement format warrants certain details to be mandatory there. Here, you will find the details of the information and points that need to find their way into the agreement form.
- The name of the landlord and his address
- The name of the tenant and his current address
- Signatures of both the parties involved
- The rental amount finalized per month
- The security deposits
- The duration of stay
- The maintenance charges, if nay
- The rights and responsibilities of the landlord
- The rights and responsibilities of the tenant
Every rent agreement must have all the above details listed. If you follow the 11 months rental agreement format, you will end up filling in all these particulars. Make sure to double-check once to avoid any unwanted errors.
The Terms And Conditions
If you have closely seen the 11 months rental agreement format, you will find that certain terms and conditions are also a part of the agreement.
To avoid confusion, let us once again list it clearly for you.
First, you will find the details with regards to the tenants.
The token amount
The agreement needs to list the token amount you give to the landlord to kickstart the lease.
The security deposits
The agreement needs to underline precisely the security deposit that you have to pay. It should also talk about what will happen to the amount when you leave the property.
It should list down the number of people who can stay in the apartment. It should also have details regarding the rules when your family chooses to join you. It should also mention will there be any changes in the rent or the agreement
The agreement needs to clearly outline who will bear the charges for the repair that will take place.
Your agreement should list whether or not you need to pay the maintenance charge. If you have to pay, list the amount.
The timing and visitation
The agreement will outline people who can visit you (the relations included) and limitations on the time of visit if any. Some landlords have a strict policy of not allowing male guests, especially friends and colleagues to women-rented apartments.
The pet rules
The agreement should mention whether or not you can keep pets. If you can, mention any rules that may be present.
These are the key terms and conditions that should be present in the agreement from the perspective of the tenant.
Now, it is time to look from the landlord’s perspective
The agreement should list the conditions upon which you can ask the renter to vacate the property
The visiting hours
Outline the hours wherein you will permit visitors to enter your property
The damage and repairs
The agreement should have a detailed mention of the consequences of damages to the property. It should also talk about the repair charges to be borne
If your tenant wants to sublet your property, mention the details, causes, and conditions prehand.
Can there be a hike in rent during the agreement?
As per the draft Model Tenancy Act, 2019, the landlords cannot implement any hike in rent during the agreement. After the agreement lapses and before a new one is issued; the landlord can hike the rent.
What is the penalty for overstaying an agreement?
Tenants who choose to overstay in their rented accommodation will be liable to pay extra as penalty. It will be double the stated rent for the first two months. The next four months will see a heftier penalty as they need to pay four times the rent.
Can landlords evict the tenants over rent failure even during the pandemic?
The landlords hold full right to evict their tenants if they fail to pay the rent for two consecutive months. However, if the state issues a directive to the landlords, they may not evict their tenants.
Is it compulsory to register the agreement?
Yes, it is compulsory to register the rent agreement for it to be considered legal. A notarized rent agreement will not be considered as proof in a court of law, should there be any dispute.
Is it important to choose to have the agreement for over 11 months?
Yes, the agreement cannot be registered if the lease duration is less than 11 months.
You have the complete details with regards to the rent agreement along with the 11 months rental agreement format. However, if it still looks overwhelming to you and you want to weed out unwanted errors and issues, feel free to get the help of a broker or an agency. They will guide you with the process.