Get your Facts right on RENT AGREEMENT RULES


In India, The Rent Control Act governs the rent, the rights of the landlord and the rights of the tenants. It was passed by the legislature in1948, regulating the rules of letting out the property and ensuring that neither the landlord’s nor the tenant’s rights are exploited by the other.

Rental Agreement

Under the law, it must be a written document between the two parties outlining the rules and regulations of the tenancy. The agreement must be stamped and registered. It is always prudent to take the help of a legal practitioner in the making of such an agreement, especially for commercial leasing.

Some of the rights that are taken care of under this Act are-

Rights of a Tenant:- Right against unfair eviction- Sufficient reason or cause has to be there to evict a tenant otherwise the landlord has to approach the court to get a stay order. These rules differ from state to state.

Fair Rent – Usually the rent is 5% to 10% of the value of the property, including all costs incurred via construction and fixtures. The increase in rent can also be not beyond

Essential Services- The basic services like water supply and electricity has to be provided, even if there is a delay in payment of the rent.

Rights of a Landlord:- Right to Evict – If the landlord wants to get the property evicted, then a notice is mandatory accompanied by a court order, depending on the state rules.

Charge Rent- Landlords can increase the total rent amount of residential property by 10 percent at an interval of two years. State laws are applicable here too.

Temporary Repossession of Property- This is done to make changes to the property and do some repair and renovation work.

What should be included in a rental agreement?

There is a set format for the signing of a rental agreement between two parties. It includes the names and address of the landlord and tenant, terms of the tenancy, period of tenancy, rent and security deposit amount, restrictions on both parties, conditions for termination of the agreement, conditions for renewal and details of who should bear other charges such as maintenance charges, repairs, etc.

Why is the rent agreement for 11 months?

According to the requirements of the Registration Act 1908, registration of a property, on lease for a year is obligatory. Therefore, to skip the tedious process of registration, the rent agreements are usually drafted for a period of eleven months.

What is the minimum rental period?

It is 1 month if the rent is paid monthly, 4 weeks if it is paid weekly.

Who keeps the original rent agreement?

The one who pays the stamp duty (usually the owner) gets to keep the original agreement, the copy of it is kept by the other party.

Under what conditions is the Rent Control Agreement not applicable?

When the property is let out to a private or public limited or to public sector companies, banks, or to foreign companies, international missions, etc., the Rent Control Act is not applicable.

The mutual understanding between the two parties works best for a cordial stay in rented premises. And if it is done in a legal way then the association can be a happy and fruitful one.

Move In = Rent Out, Tension Free

1 view0 comments

Recent Posts

See All