Rental Agreement in India: Complete Guide for Landlords and Tenants 2025
It's exciting to move into a new house, but before you start unpacking, you need to make sure you have the rental agreement. If you know what goes into a good rental agreement, it can help you avoid problems later on, whether you're a first-time tenant or an experienced landlord.
A rental agreement is like a safety net for you. It's more than just a formality, it's a legally binding contract that spells out the relationship between the landlord and the tenant. Without one, you're basically walking through a minefield with your eyes closed.
A well-written contract stops arguments, makes expectations clear, and gives both sides a way to go to court if things go wrong. Also, it's often needed for official reasons like police checks, Aadhar updates, and more.
📋 Table of Contents
- Basic Facts: Getting Off to a Good Start
- Setting Clear Boundaries in the Lease Terms
- Rent Details
- Security Deposit
- Utilities and Services
- Property Use and Occupancy
- Maintenance and Repairs
- Condition of the Property
- Rules and Limits
- Access and Entry
- Insurance
- Termination and Eviction
- Legal Compliance
- How GetLawyer.me Can Help
- Frequently Asked Questions
🏠 Basic Facts: Getting Off to a Good Start
The basics are always the first thing in a rental agreement. You will need to write down the full address of the property, including the plot number, street name, locality, city, and PIN code. Be clear about everything.
Include the full names, phone numbers, and permanent addresses of both the landlord and all the tenants. Put the information for any co-tenants or guarantors here as well. Don't forget to put the date on the agreement. This is when your legal relationship starts.
📅 Setting Clear Boundaries in the Lease Terms
How long will this arrangement last?
Make sure to clearly state the start and end dates of your lease. Are you going to sign a standard 11-month lease or a longer one? The length is important because it affects legal requirements like registering under the Registration Act, 1908.
You should also make sure you know if this is a month-to-month lease or a fixed-term lease. Include information about renewal, such as whether it happens automatically or if both parties have to agree. If either party wants to end the lease early, how long do they have to give notice? In most cases, this is between one and three months.
💰 Rent Details
To avoid any confusion, write down the monthly rent amount in both words and numbers. Be clear about when the payment is due, whether it's the 1st, 5th, or 10th of the month.
Make a list of all the ways to pay. Most people these days like to make payments online, but make sure you know if you accept cash, checks, or UPI. Also, be honest about the fees for late payments. Most of the time, there is a 3- to 5-day grace period, after which a late fee (usually 2 to 5% of the monthly rent) starts to apply.
If you want to raise the rent, make sure you spell out the terms. Will it go up every year? How much of a percentage? These details will help you avoid awkward conversations later.
🔒 Security Deposit
The security deposit is like an insurance policy. Most landlords want a deposit of two to three months' rent, but this can change depending on where you live and what kind of property it is.
Be clear about what the deposit covers, like unpaid rent, damages that go beyond normal wear and tear, or cleaning costs. Be clear about the conditions for deductions. What does "damage" mean? Normal paint fading after two years?
Add a date by which the deposit will be returned after the tenant moves out, usually within 30 to 45 days. Some states make landlords pay interest on deposits, so check the rules in your area and add this if it applies.
⚡ Who Pays for What: Utilities and Services?
When utility arrangements aren't clear, nothing is more confusing. List the utilities that are included in the rent, such as water and maintenance fees, and those that the tenant will have to pay for separately, such as electricity, gas, or Wi-Fi.
Tell us who is in charge of making new connections. For cable and internet, say if the tenant can keep their current connections or if they need to set up their own.
🔧 Maintenance and Repairs: Sharing Responsibilities
When something breaks, who fixes it? This part keeps you from fighting in the middle of the night.
Landlords usually take care of fixing the structure, replacing major appliances, and fixing plumbing or electrical problems. Tenants usually do minor repairs, change light bulbs, and keep drains clear as part of their daily tasks.
Make sure there is a clear way to report repairs. Should the tenant text, email, or call? Who do they call in an emergency at 2 AM? Set time limits for responses: 24 hours for emergencies and 7 days for non-urgent issues.
📝 Rules and Limits
This is where you make the rules for living together in peace:
- Pet policy: Are pets welcome? What kinds and sizes? Is there a second pet deposit? Some landlords only let small pets stay, while others don't let any pets stay at all.
- Smoking policy: Can people smoke inside the building, only on balconies, or not at all?
- Noise rules: This is where you can find quiet hours, party rules, and rules for being polite.
- Parking arrangements: How many cars are allowed? Where can they park, exactly?
- Changes: Is the tenant allowed to paint the walls, put up shelves, or make other changes? Usually, you need to get permission in writing before making any changes.
⚖️ Legal Compliance
There are a number of laws that your rental agreement must follow, such as the Transfer of Property Act, state-specific rent control laws, and local municipal rules.
Make sure your agreement follows fair housing laws and doesn't treat people differently because of their religion, caste, gender, or any other protected category. Include references to safety codes and building rules that apply.
✍️ Signatures and Registration
After everything is written down, both sides sign and date the contract. Some states require witnesses to sign or have the document notarized to make it more legally valid.
In India, the Registration Act says that agreements that last more than 11 months must be registered. This means going to the sub-registrar's office with the original agreement, proof of identity, and the registration fees.
🤝 How GetLawyer.me Can Help You
It's not easy to write a rental agreement that is fair to both parties and covers all the legal bases. That's where we come in.
Our lawyers at GetLawyer.me are experts in property law and rental agreements. We assist you:
- Write rental agreements that are specific to your needs
- Make sure you follow all central and state laws
- Make sure the registration process goes smoothly
- Look over any existing agreements for problems
- Use the law to settle rental disputes
- Give you legal help throughout your tenancy
We know that each rental situation is unique. We can help you with affordable and easy-to-find legal advice, whether you're a landlord protecting your investment or a tenant making sure you're treated fairly.