Rent Agreements in India: What to Check Before You Sign

A rent agreement is the one document that decides what happens when something goes wrong: a rent hike, a repair nobody wants to pay for, an early move-out, or a deposit that doesn't come back. This guide walks through what to check, what it costs, and the steps that make the agreement actually hold up, whether you're the tenant or the landlord.

Why a written agreement matters

Plenty of rentals in India still run on a handshake, and they work fine until they don't. A signed agreement does four practical jobs:

• It settles disputes before they start. Rent, deposit, notice period and repairs are written down, so neither side can remember them differently later.
• It's proof of address. Banks, passport offices, gas connections and Aadhaar address updates commonly accept a registered or notarised rent agreement along with a utility bill.
• It supports your HRA claim. Rent receipts are the main proof employers ask for, but an agreement backs them up, especially for higher rents or if the tax department asks questions.
• It protects the landlord too. It records that the occupant is a tenant for a fixed term, not someone with a claim to the property, and gives the landlord a clear basis to ask them to leave at the end.

Why most agreements are for 11 months

Under the Registration Act, 1908, a lease of immovable property for a term longer than one year (or from year to year) must be registered at the sub-registrar's office. Registration means paying stamp duty on a larger value, a registration fee, and both parties appearing in person (or online, where the state allows it).

An agreement for 11 months stays under that line, so in most states it doesn't have to be registered. That's the whole reason for the 11-month convention: it's cheaper and quicker, and the parties simply sign a fresh agreement when it runs out.

Is an unregistered 11-month agreement still valid? Yes. It's a binding contract between the two of you. What it can't do is stand in for a registered lease: if an agreement legally needed registration (because it's longer than a year) and wasn't registered, a court won't accept it as proof of the lease terms. Notarising an agreement doesn't change this. Notarisation only confirms who signed it; it is not registration.

Stamp duty and stamp paper

Stamp duty is a state subject, so the amount depends on where the property is. Some states charge a fixed amount for short residential agreements, so a ₹100 or ₹500 stamp paper is common. Others charge a percentage of the total rent and deposit for the term. Rates change, so check the current figure on your state's registration or e-stamping website, or ask an authorised stamp vendor, before you buy.

• Buy it before signing. The stamp paper or e-stamp certificate should be dated on or before the day the agreement is signed.
• Buy it in a party's name. It's usually bought in the tenant's or landlord's name. The agreement says who pays; tenants commonly do.
• E-stamping is easier. Many states issue e-stamp certificates through the Stock Holding Corporation of India (SHCIL) or their own portal, which avoids the hunt for the right physical paper.
• Under-stamped agreements cause trouble. An agreement on too little stamp paper can't be used as evidence until the shortfall, and a penalty, are paid.

What the agreement must say

A good residential agreement covers these points clearly, in numbers and dates, not vague words:

Including Aadhaar or other ID numbers is common practice and helps identify the parties, but no law requires it. If you include them, keep copies of the signed agreement private.

Clauses to push back on

Most agreements are fair, but these clauses are worth questioning before you sign:

• "Deductions at the owner's discretion." Ask for the specific charges instead: unpaid rent, unpaid bills, and damage beyond normal wear and tear.
• No refund timeline. Ask for the deposit to be returned on handover, or within a fixed number of days.
• Whole-deposit forfeiture. Losing the entire deposit for leaving a month early is harsh. A one-month penalty or a short lock-in is more common.
• Open-ended rent increases. "As decided by the owner" should be a percentage.
• Tenant pays for everything. Structural repairs, seepage and old wiring are normally the owner's responsibility.
• Entry at any time. A landlord can reasonably ask for access, with notice, at reasonable hours.

Security deposit: how much is normal

There's no national cap. Two to three months' rent is common in Delhi, Mumbai, Pune and Hyderabad; Bengaluru has historically asked for much more, though that has been coming down. A few states, including Assam, Andhra Pradesh, Tamil Nadu and Uttar Pradesh, have tenancy laws along the lines of the Model Tenancy Act (Tamil Nadu's and Andhra Pradesh's predate the 2021 version). These cap residential deposits: two months' rent under the model law, three in Tamil Nadu. If you're in one of those states, check your state's version for the exact limit.

For what can be deducted when you move out, and what to do if the deposit isn't returned, see getting your security deposit back.

What to do after signing

1. Print on the stamp paper (or attach the e-stamp certificate as the first page) before signing.
2. Sign every page. Landlord and every adult tenant sign each page; two witnesses sign the last page with their names and addresses.
3. Keep two originals. One for the landlord, one for the tenant. A photocopy isn't enough if there's ever a dispute.
4. Register it if required. That means any lease longer than one year, and every leave and licence agreement in Maharashtra. Both parties (or authorised representatives) go to the sub-registrar with ID, or complete it online where available.
5. Complete police verification. Most city police, including Delhi, Mumbai, Bengaluru, Hyderabad and Pune, require landlords to submit tenant details, often through an online form or app. Skipping it can lead to a fine for the landlord.
6. Document the condition of the flat. Take dated photos or a video of every room, the fittings and the meter readings on move-in day, and share them with the landlord. It's the single best protection for your deposit later.
7. Pay rent in a traceable way. Bank transfer or UPI gives both sides a record, and keep monthly receipts if you claim HRA.

Renewing or ending the agreement

When the term ends, renewing means a fresh agreement on fresh stamp paper with the new rent. Extending with a letter or by carrying on paying rent leaves the terms unclear. If either side wants to end it early, follow the notice clause exactly: written notice, the agreed number of months, and a clear vacating date.

On the last day, do a joint inspection, read the meters, return every key, and agree the deposit deductions in writing. Then the refund has nothing left to argue about.