What are the important points that should be kept in mind while drafting a Rent Agreement?

What are the important points that should be kept in mind while drafting a Rent Agreement?

A rent agreement contains the previously agreed-upon terms and conditions under which the tenant (lessee) agrees to pay rent for the rental properties owned by the other party (lessor). It is sometimes referred to as a lease agreement between the tenant and the landlord, who is the owner of the property, for a set period of time.

The terms and circumstances of the tenancy as well as every aspect of the two parties, the landlord and the renter, are included in the rent agreements. The rules outlined in the rental agreement must be adhered to by both parties.

In a developing nation like India, rental housing has grown significantly. So much so that several Indian states are currently busy figuring out the specifics of additional rental rules that are consistent with the country's future in order to promote this type of housing, after the union cabinet's ratification of the Model Tenancy Act, 2019. The tenant is required to sign a rent agreement when engaging into a renting arrangement with a landlord in accordance with the proposed Model Tenancy Act of the union government (all states must base their draught rental legislation on this Act). The terms and conditions that will be binding on both parties must be included in the lease agreement

Documents needed for rent agreement registration;

  1. Landlord;
  • Two passport-sized photos.
  • Aadhaar card.
  • Identity proof (driving licence, voter card or passport).


  1. Tenant;
  • Two passport-sized photos.
  • Aadhaar card.
  • Voter ID card.
  • Passport for people from outside India.

Details to be included in the rent agreement;

Key details included in a standard rent agreement are:

  • Names and addresses of the tenant and the landlord.
  • Signatures of the tenant and the landlord.
  • Monthly rental amount.
  • Security deposit.
  • Maintenance charges.
  • Period of stay.
  • Responsibilities/rights of the landlord.
  • Responsibilities/rights of the tenant.

Dos and don’ts while drafting a rental agreement:

In this nation, notarized stamp papers are frequently used to create rental agreements. There is a potential that either party will violate this agreement, even though it constitutes a binding legal contract. As a result, the rent agreement needs to be recorded at the neighbourhood sub-office registrar's. It can be abused by either side if registration is not required. The rental contract should also include strong terms and provisions that safeguard the interests of both parties.

Important points that the parties should know about the Rental Agreement:

It's crucial to sign the contract in the presence of two reliable witnesses. The police frequently demand tenant verification due to the deteriorating law and order situation in metro areas. A copy of the tenants' employment letter may also be requested by landlords. However, nobody's character should be judged by this. For tenants who are foreign nationals or those who are not residents of that city, landlords should demand police verification.

According to the Model Tenancy Law, landlords are not permitted to raise the rent in the middle of a lease. Before changing the rent, they must give three months' notice in writing. If they have incurred costs for an improvement, addition, or structural modification that does not include "repairs," they may raise the rent.

According to the Model Tenancy Law, if a tenant doesn't pay their rent for two consecutive months, the landlord has the authority to sue the rent court to evict them.

The Model Tenancy Law stipulates that tenants will be responsible for paying double the rent for the first two months and four times the rate in the following months to deter them from continuing to live in the home after the rental agreement expires.

Further, it's crucial to include in the rental agreement the costs associated with maintenance, power, water, and other services, as well as any separate utility connections, the basis on which the tenant is responsible for paying the bill, and whether a set monthly payment is required.

Important points that should be kept in mind while framing a Rent Agreement:

Most lawyers who help prepare the agreement generally have a template on hand. This does not preclude you from altering the terms. Additionally, you can modify the contract to include conditions that work for both the landlord and the tenant. For a desired template, you can alternatively utilise the proposed Draft Tenancy Act 2015.

Through rental agreements, the 2015 Draft Model Tenancy Act seeks to balance the rights and obligations of landlords and tenants. The primary goals of this act are to resolve repossession concerns, unlock existing properties for rental use, and mutually fix and revise the rent between the landlord and renter.

Rent agreements are currently recorded at the sub-office registrar's The Model Tenancy Act, 2019 suggests creating a rent authority to ensure justice and transparency. After discussing and agreeing upon the terms and conditions, the landlord and the renter can create a written lease. To have the agreement registered, they need speak with the appropriate party. The authority will update the registered agreement's information on its website. The Draft Model Tenancy Law was approved by the Union Cabinet on June 2, 2021.

Why do we need a professional lawyer to draft a Rent Agreement?

Despite the fact that hiring lawyers for a leasing agreement can be seem expensive, it is still crucial.A strong leasing agreement serves as the foundation of a secure and fruitful contractual partnership. Therefore, when faced with the burden of entering into a lease or rent agreement, it is imperative to retain the services of a knowledgeable legal mind.

Not only the above-mentioned facts but a lawyer explains the contract's fine print to you. You'll be able to read between the lines and spot any traps that could alter the length of your rental time with a simplified explanation. You won't be forced to sign a contract that you do not fully understand which could be used against you in the event of a forcible eviction.

In order to effectively safeguard both parties' interests and make sure that neither party is harmed by the other, a good property lawyer is essential.

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