Real Estate

Rent Agreement Guide India: Essential Clauses, Registration & Legal Tips

February 12, 2026 • 10 min read

Over 1.1 crore Indians rent homes every year. Yet most sign rent agreements without reading them, don't understand the difference between a lease and a license, and have no idea what happens if a landlord suddenly asks them to vacate. Whether you're a tenant or a landlord, this guide covers everything you need to know about rent agreements in India.

Lease Agreement vs Leave & License Agreement

The most misunderstood distinction in Indian rental law:

📃 Lease Agreement

Duration: Typically 1+ years. Legal basis: Transfer of Property Act 1882. Key feature: Transfers an "interest" in the property to the lessee. Registration: Mandatory if over 11 months (under RERA and state registration laws). Eviction: Governed by state Rent Control Acts, extremely tenant-friendly, making eviction very difficult.

📃 Leave & License Agreement

Duration: Usually 11-60 months. Legal basis: Indian Easements Act 1882 (Section 52). Key feature: Grants permission to occupy without transferring any interest. Registration: Mandatory in Maharashtra. Eviction: Much easier, license can be revoked with reasonable notice. Preferred by landlords because it avoids Rent Control Act complications.

Why 11 months? Most rent agreements in India are for 11 months because agreements under 12 months don't require mandatory registration under the Registration Act 1908 (Section 17). This saves cost and hassle. However, in Maharashtra, even 11-month Leave & License agreements must be registered.

10 Essential Clauses in Every Rent Agreement

✅ 1. Party Details

Full legal names, addresses, and ID proof details (Aadhaar/PAN) of both landlord and tenant. Include co-tenants if applicable.

✅ 2. Property Description

Complete address with flat/house number, floor, building name, area in sq. ft., and a clear description of what's included (parking, storage, terrace access).

✅ 3. Rent Amount & Payment Terms

Monthly rent, due date (typically 1st-5th), payment method (bank transfer preferred for record), and late payment penalty (usually ₹50-100/day).

✅ 4. Security Deposit

Standard is 2-3 months' rent (up to 10 months in Bangalore). Specify: amount, conditions for deduction, interest (if any), and refund timeline (typically 30-60 days after vacating).

✅ 5. Duration & Renewal

Start date, end date, and renewal terms. Specify whether renewal is automatic or requires fresh agreement. Include rent escalation clause (standard: 5-10% annual increase).

✅ 6. Lock-In Period

Period during which neither party can terminate (usually 3-6 months). After lock-in, either party gives notice (typically 1-2 months). Violations result in forfeiture of deposit or equivalent penalty.

✅ 7. Maintenance & Repairs

Who pays for what? Standard split: Minor repairs (under ₹5,000, plumbing, electrical) = tenant. Structural repairs (walls, roof, wiring) = landlord. Society maintenance = specify clearly.

✅ 8. Usage Restrictions

Residential vs. commercial use. Subletting permissions. Pet policies. Guest restrictions. Alteration permissions (painting, drilling, renovations).

✅ 9. Termination & Notice

Notice period (1-2 months), format (written notice required), and consequences of early termination. Address what happens to the security deposit upon termination.

✅ 10. Inventory List

Detailed list of all furnishings, appliances, and fittings provided by the landlord with their condition noted. Photographs are recommended. This prevents disputes at the time of vacating.

Registration: When Is It Required?

Agreements over 11 months: Mandatory registration under Section 17 of the Registration Act 1908
Maharashtra: ALL Leave & License agreements (even 11 months) must be registered under the Maharashtra Rent Control Act 1999
Model Tenancy Act 2021: Recommends mandatory registration of all rental agreements through a Rent Authority, though state adoption varies

Registration Process

Draft the agreement on appropriate e-stamp paper
Both parties sign in the presence of 2 witnesses
Visit the Sub-Registrar's office or use the online portal
Pay registration fees (typically 1% of annual rent or ₹1,000, whichever is higher)
Receive the registered copy

Police Verification: Don't Skip This

Under Section 188 of the IPC (now BNS Section 223), landlords must inform local police about tenants. While enforcement varies by city. It's mandatory in:

Mumbai and all of Maharashtra
Delhi (through online portal)
Bangalore
Most metro cities

Failure to file for police verification can result in fines and complications during any legal dispute.

Red Flags in Rent Agreements

❌ No lock-in for landlord but long lock-in for tenant: This is one-sided
❌ Vague maintenance responsibilities: "Tenant shall maintain the property" without specifics
❌ No deposit refund timeline: Landlords can hold your deposit indefinitely
❌ Annual rent increase above 10%: Standard is 5-10%. Anything higher is excessive
❌ Landlord can enter anytime: Should specify 24-hour notice requirement
❌ No termination clause: Without it, you're locked in for the full term

Don't Sign Blindly.

Templates are just a start. Use AI to scan your specific contract for hidden risks and unfair clauses in 60 seconds.

Analyze Your Contract Free →

Key Takeaways

✅ Leave & License agreements are generally safer for landlords than leases
✅ 11-month agreements avoid registration hassle (except in Maharashtra)
✅ Always include lock-in period, deposit refund terms, and maintenance split
✅ Register agreements over 11 months, unregistered agreements are inadmissible in court
✅ Complete police verification. It's legally required in most cities
✅ Keep photos of the property condition at move-in and move-out

A rent agreement isn't a formality. It's your legal protection. Whether you're a first-time renter in Mumbai or a landlord in Bangalore, getting the agreement right prevents disputes that can drag on for years.

Frequently Asked Questions

What is the difference between lease and license in India?

A lease transfers an interest in the property to the tenant under the Transfer of Property Act 1882, while a license merely grants permission to occupy under the Indian Easements Act 1882. Leases are harder to terminate and fall under Rent Control Acts, while licenses can be revoked with reasonable notice.

Is rent agreement registration mandatory in India?

Registration is mandatory for lease agreements exceeding 11 months under the Registration Act 1908. In Maharashtra, even Leave and License agreements must be registered. Unregistered agreements exceeding 11 months are not admissible as evidence in court.

How much stamp duty is needed for a rent agreement?

Stamp duty varies by state. In Maharashtra, it is 0.25% of the total agreement value for Leave and License agreements. In Delhi, it is Rs 100 for agreements under 1 year. In Karnataka, it is 1% for leases of 1-10 years.

What happens if there is no rent agreement?

Without a written rent agreement, tenants may still have rights under state Rent Control Acts based on oral agreements. However, proving terms becomes difficult, disputes are harder to resolve, and neither party has clear legal protection for rent amount, deposit, or maintenance obligations.