What Is Rental Agreement | Types | Key Terms | How To Prepare | Execution | Documentation | Format | FAQ

You don’t need an expert to tell you that buying a property is a mighty expensive affair and something that not everyone can afford. Owing to the massive housing prices, renting has become more common than ever before. A lot of people choose to opt for rental agreements as they prefer to stay on rent rather than look for ways by which they can procure massive money for the sake of buying a home they can call their own.

So, if you too have decided to rent a house, there is something called rental agreement details that you need to know of. Here, we are going to give you a detailed guide on what a rental agreement is and the related details of all the aspects pertaining to it.

When you want to rent a home, you need to be mindful of the key details. Here, we will be sharing the specifics of the rental agreement details to guide you. 

So, let us check out the basics first. 

What Is A Rental Agreement?

A rental agreement is a contract between the tenant who wants to stay there and the landlord who owns the property. It binds to the legal terms and clauses and clearly outlines the key terms and conditions that are a part of the process of renting the property.

rental agreement
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The rental agreement will clearly outline several details which include but are not limited to 

  • The monthly rent 
  • The size of the property 
  • The tenure of rent 
  • The address of the property 
  • Property type whether it is residential, commercial or something else 
  • Exception clauses for eviction 

So, you have to be sure that you duly go through the agreement before you decide to sign it and make it legally binding and applicable. A lot of people choose to ignore this document and never read the fine print. However, if your landlord outsmarts you, they may end up hoodwinking you by putting the wrong clauses in the agreement. The last thing you want is to find yourself at a loss, staring at things that have spiralled out of control.

The courtroom has had several dramatic cases of rent disputes as the tenant and landlord often run into different types of disagreement. This is why in order to be best prepared for the future, it is imperative that you put in the right efforts and read the rental agreement details minutely. 

As per the Registration Act of 1908, if the renting period is more than 12 months, it becomes mandatory to have the rental agreement registered. Both the landlord and the tenant will be secured if they choose to work on the rental agreement meticulously. It will allow them to be sure that they will be able to iron out any possible chances of conflict later. 

The Types Of Rental Agreements 

There are basically two types of rental agreements. The difference is categorized on the basis of the duration. 

The first one is an agreement that lasts for a minimum period of 12 months or more. This will have to abide by the rent control laws and need to be duly registered.

The other one is where the tenure of stay is 11 months or less. This doesn’t need to be registered but can simply be notarized and a stamp duty charge has to be paid. The 11-months agreement is a whole lot more common as compared to the longer one. This is probably because of lesser charges and fewer formalities. 

Key Terms Of A Rental Agreement 

First of all, you need to know that there is no way you can rent a property without making a rental agreement. It is absolutely crucial to have one.

house rent
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This is why we want you to be familiar with some of the common terms and factors that are a part of the rental agreement. Doing this will help you be sure of what to expect. This will help you work on the specifics accordingly. 

Occupant Info 

Whenever you are drawing a rental agreement, it is important to clearly list the names of all the occupants who will be residing in the rented property. This is important to bring transparency and to ensure that the details are well-listed. It will also ensure that there will be legal details of who is owning responsibility for the place during the course of the rent. 

The Rent Amount 

This is by far one of the most important details and the very core reason for making an agreement in the first place. You need to clearly outline the amount or even the instalment that you need to pay every month as rent. 

Along with mentioning the rental amount, the agreement should also precisely outline the date when the rent is to be paid, the money to be paid every month and the punishment or the charges that will be incurred in case you fail to make the payment. It will also outline the details of what will happen if the tenant fails to make payments for successive months and the penalty that will be charged. 

It can also mention details of the payment methods that will be allowed. This is a great way to ensure that no illegal transfer of money takes place as the details are always listed in a clear and precise manner that is transparent to both parties involved. 

The Duration Of The Rent 

The agreement should on clear terms define the duration for which the stay is allowed. This is very important to ensure that no tenants try to illegally take hold of the property. Mentioning the details of the tenure helps in defining this aspect and prevents the property from being illegally seized. This clause is of utmost importance to the landlord.

Even if you look at it from the tenant’s point of view, having the tenure clearly mentioned ensures that they will not be forced to vacate the property before their tenure is over. So, this is a win-win situation for both parties involved. 

The Maintenance Charges 

This differs a great deal. Some landlords pay the maintenance charges while in other cases it is the responsibility of the tenant to pay the charges. You have to be sure that you are clearly mentioning the details in the rental agreement.

Even when there is some major or minor repair that is incurred, the rental agreement should mention who will need to bear the expenses. These details help in ironing out any differences that may otherwise arrive.

The Renewal Details 

The rental agreement details will also mention the date of renewal of the agreement. This date will become applicable if the tenant wants to continue staying at the place and even if the landlord is willing to continue with the arrangement. In such a case, the lease will have to be signed all over again on the mentioned renewal date. 

The Rules 

The agreement will clearly mention and underline the rules that have to be followed for the sake of safeguarding and keeping the property premises safe and regulated. Here the details with clauses about subletting of space and even making structural alterations will be clearly mentioned.

Most landlords don’t allow the tenants to sublet the space or even make any alterations. If they are caught doing any of this, it will lead to a serious penalty, the details of which will be clearly mentioned in the agreement content. 

The Amenities 

The agreement is going to clearly mention the amenities that will be given to the tenants and the condition under which they will need any repairs and who needs to bear the expense for it. 

The Exit Clause 

If the tenant decides to vacate the property before the lease period is over, they will need to abide by the rules of the exit clause. These details too are going to be a part of the agreement. 

The Signature And Date 

Both parties need to put in their signature on the agreement along with the date as proof that they both agree to the terms and clauses. Once they have signed the document and then if either of the party fails to abide by the rules, they will be subjected to legal action. 

signing agreement
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A very important point that we will like to mention is that the agreement entails police verification of the tenant. This is important to ensure that the property is safe and that no unwanted intruder or terrorist or criminal is residing here. If no background check is done on the tenant, it registers as a punishable offence. 

So, these are some of the terms that you need to be familiar with when you will need to either make or sign a rental agreement. While this agreement will contain several other details, these are some of the core aspects and areas that are going to be a part of it. 

How To Prepare A Rent Agreement?

If you want to make a rent agreement, you need to be well acquainted with the process. Here, we are going to shed light on the particulars so that you can grasp the details in the right manner. Knowing the process is an absolute must or else you won’t be able to sketch the agreement the way it is supposed to. 

The first thing is that it is mandatory to register the rent agreement in India. No matter which category of the agreement it is whether it is residential or commercial, the owners and the tenant need to be sure that they are registering the document for it to be actually valid. 

A very important clause is that rental agreements with a tenure of more than a year have to be compulsorily registered. Agreements that are for a period lesser than a year don’t need to be registered but it has to be notarized by a public notary. You also need to pay a stamp duty along with it and it will suffice as a legal note. 

So, let us walk you through the steps now.

  • First of all, make a sketch of the rent agreement details. Make sure to mention the clauses with regard to the security deposit, the token amount, and the rent payable 
  • Now get the whole agreement printed on stamp paper. Make sure the value of the stamp paper is as per the norms of what is to be paid
  • Make it a point to check that both the tenant and the landlord put their signature on the agreement 
  • You also need to head to the sub-registrar’s office at the relevant locality 
  • Make sure to carry all the necessary documents, especially the ID proof. This is for the sake of verification and authorization of the document check 
  • When you have paid the stamp duty charges, the registration will be deemed complete. Regardless of property value, the stamp duty charges are usually fixed at Rs. 1100

The Execution Of The Rental Agreement 

Simply making the agreement is just the first step of the whole process. It is absolutely vital that you chalk out the details of the rest of the process. This is the reason; we want you to know about the different steps to be followed when it comes to executing the rental agreement. 

You need to be sure that you have registered the rent agreement as per the Registration Act of 1908. However, this is only applicable if the rent is applicable for a time span stretching more than a year. Three is no need to register the document should the lease period be 11 months or less. In such cases, writing the agreement on stamp paper and signing it will be sufficient. This will consider the document legally binding. 

Patryk Kosmider / Shutterstock

For properties with a rental agreement of less than a year, the agreement should be printed on stamp paper. This in turn will need to be collected from the sub-registrar office. This office should be in the same locality as the property. 

It is important that both parties put their signature at the bottom of each page of the stamp paper. It is to be done after the agreement has been duly printed. Along with the parties, it is also important that two other witnesses be present as well. They need to sign and also enter the details of their name and address as well. They are proof of the fact that the document was signed by both members in their senses. It also guarantees that it was done under no external force whatsoever. 

Rental Agreements Details For Periods More Than A Year 

When the duration of the agreement exceeds 12 months, the agreement will have to be duly printed on stamp paper. It then needs to be registered with the sub-registrar’s office. The office should be in the region where the property is located. 

It is important that the agreement is signed in person by both the concerned parties. Along with this, two other witnesses need to be present at the same time and the paper will be considered duly registered after the necessary payment has been made. 

So, this is how the rental agreement details are executed. Once it is done, it becomes immediately applicable and legally binding. Both parties will now have to abide by the rules of this agreement paper. 

Documentation Needed 

When you are making the rental agreement details, it is also important to be mindful of the documents that you need to carry.

Before you start stacking all the necessary documents, the first thing you need to remember is that you will have to mandatorily pay the stamp duty charges. Stamp duty is like a property tax that has to be paid when someone else chooses to use your property. 

The value of the stamp duty is fixed on the basis of the transaction value or the rent payment. Usually, it is fixed at Rs. 1100 but you should always check with the state rules and also the latest updates as well. Some states also have the option of e-stamping. In such cases, you don’t need to go and buy the stamp paper. You can visit the Stock Holding Corporation website and check the states that have the provision for stamping. A lot of people who prefer online payment always prefer e-stamping as it becomes a whole lot more convenient. 

When you are done with this, you then need to work on the list of documents that you will need. 

  • Original proof of ownership. The landlord needs to prove that he/she is indeed the owner of the property. They will need documents to validate the same thing 
  • Documents of the property that will be put on the lease like the tax receipt
  • Identification proof of both the parties and the witnesses. These include passport-sized photographs of each of the individuals 
  • Address proof of both the parties and the witness. The document could be anything from a passport to Aadhar, bank passbook or even a driving license 
  • The complete and thorough route map of the property will be given on the rent 

So, you need to be sure that you are taking care of these details. Make sure that you have these documents handy with you. This will make the whole process quicker and smoother. We do realize that the whole process of renting a party isn’t very easy. There are several steps, rules, and red herrings involved. Still, all of this is incurred at the very start. Once you get a hang of it and have everything executed, the rest of the tenure rolls out smoothly.

It is also important to know these points to ensure that neither the tenant nor the landlord can hoodwink each other. So many people choose to live on rented properties that the lack of a definite legal stand could lead to endless troubles. This would have created a whole lot more chaos than what the judicial system could otherwise handle. 

The Format For The 11 Month Rental Agreement Details

Whenever you are making the 11 months rental agreement, you need to use a certain format. You will find a lot of ready-made templates. There you just need to alter the particulars based on what you have decided.

Sample Format 


Owner name (Mr.XXXX) S/o xxxx aged 52 years, residing at No.1 (Address Chennai-600 -??)

Hereinafter called the ‘HOUSE OWNER’ which term shall mean and include his heirs legal

Representative, executors, administrators and assigns of the FIRST PART.


1.    Mr.xxx S/o. xxx aged about 33 years resident at (Address) hereinafter called the



WHEREAS the House owner is the absolute owner of the house, situated at (Address.)

WHEREAS the Party of the SECOND PART has offered to take on lease on Monthly Rent

of Rs.8800/-(Eight thousand eight hundred only) including maintenance and

Water charges.

WHEREAS the Party of the FIRST PART has agreed to let out the same to the Party of the

SECOND PART subject to the following terms and conditions.


1. The Rent shall be inrespect of the house at (Address)

2. The Rent shall be for a Period of Eleven Months commencing from (01.01.20?? to 30.11.20??) The same may be renewed further 11 months with mutual consent.

3. The Rent for the is Rs.8800/-(Eight thousand eight hundred only) including maintenance and Water charges.

4. The Party of the SECOND PART shall pay the rent regularly on or before in English Calendar 05 the day of Every Month to the party of the FIRST PART or his nominee or Nomines.

5. The Party of the SECOND PART has this day paid of the FIRST PART a sum of Rs.50,000/-(Rupees Fifty Thousand only) as security Deposit without any interest and the same is refundable at the time of the Party of the SECOND PART Vacating the premises.

6. The Party of the SECOND PART shall not alter or modify the existing Building without the written consent of the party of the FIRST PART.

7. The Party of the SECOND PART shall not sublet the house to any person or persons.

8. The Tenant shall not store any combustible or dangerous goods or substances Prohibited under law in the demised portions. The Party of the SECOND PART shall not demand for more amenities than the one available now.

9. The Party of the FIRST PART shall have the right to inspect the building at any time and the party of the SECOND PART shall not objection for the same. The Second part shall not allow the premises for any illegal activities if is is found so, the First part has got the right to enter premises and take possession of the same, for which conditions The Second part herein has agreed.

10. The party of the SECOND PART shall keep the building in perfect condition without Causing any damage to the structures. He shall not install any immovable properties Which are likely to cause damage to the building or diminish the value of the same.

11. The Propertory tax, EB Deposits shall be paid by the party of the FIRST PART, the Electricity Charges Rs.6/- per unit shall be paid by the SECOND PART on the used Shown in the respective Meter.

12. The tenancy is terminable on One Month Notice on either side.

13. The Party of the FIRST PART shall have the right to adjust the arrears of rents, electric charges and damages if an from and out of the advance at the time of party of the SECOND PART vacating Premises. The party of the second should not rise any Objection if any so.







So, this is the main agreement. Of coruse, you can make changes regarding the clauses and terms that the two of you have decided. You can also choose to have the same agreement in any other language that the two of you have chosen.

This is mostly the prime format that you have to stick to. As you can see it does cover all the core points that we had spoken of. Make sure to fill in all the particulars accurately. This will ensure the agreement turns out to be as useful as it is meant to be.


Is it important to have rental agreement details?

It is absolutely compulsory to draw rental agreement details. If you choose not to do so, it will be a punishable offence. Also, the tenant will not be allowed to stay at the property and both the landlord and tenant could be found guilty of the law and punished accordingly.

Is it compulsory to pay stamp duty charges?

When the rental agreement period is less than 11 months, you will have to be sure that you need to pay the stamp duty charges. In such cases registration is not mandatory but the document has to be notarized and the stamp duty charges have to be paid. Stamp duty is a sort of property tax that is compulsory wherever someone else chooses to use a property that they do not own. 

Can I pay the stamp duty charges online?

Some states offer the provision of online payment as they have the e-stamping provision. So, you need to log on to the official website of the Stock Holding Corporation and you can check the states that have the stamping facility. If your property falls in such a state, you can choose to download the stamp paper and make the payment. In such cases, you do not need to head to the registrar’s office to collect the paper anymore.

Is it mandatory for witnesses to be present during the signing of the document?

Yes, two witnesses, one from either side needs to be compulsorily present during the signing time. They also need to show their identification document and address proof to validate the signing of the document. 

Can you change the terms in the rental agreement details?

You can change the terms, conditions and even the clauses but you can only do so if you give prior notice of 30 days. But, if the rental agreement mentions that you may change the clause, you will only need to give a week’s notice.