Rent Agreement Format and Registration: A Practical India Guide

Ask a landlord in Delhi why the agreement runs for exactly 11 months and you'll usually hear "that's how it's done". There is a legal reason, and it isn't always the one people think. This guide explains the rent agreement format and registration rules that actually apply, what the stamp paper is for, how much deposit is reasonable, and why the Model Tenancy Act you've read about may not apply in your state at all.

Why rent agreements run for 11 months

Two central laws set the line. Section 107 of the Transfer of Property Act and Section 17 of the Registration Act say that a lease from year to year, or for more than one year, can only be made by a registered document. Registration means a visit to the sub-registrar's office (or an online process in some states), stamp duty on the full term, and a registration fee.

An agreement for 11 months stays under that one-year line. In most states it doesn't have to be registered, and the stamp duty is usually small. That's the whole reason for the convention.

What people get wrong: thinking an unregistered 11-month agreement needs no stamp duty. It still has to be stamped under the state's Stamp Act. An unstamped or understamped agreement can't be relied on as evidence until the deficit and a penalty are paid, which is exactly when you'd need it, during a dispute.

When registration is compulsory anyway

• Maharashtra: every leave and licence agreement must be registered, whatever the term, under the Maharashtra Rent Control Act. Mumbai, Pune and Thane landlords usually do this through the online registration system of the Department of Registration and Stamps, with biometrics taken at home or at a service centre.
• Any agreement over 12 months, in every state.
• States with new tenancy laws may require the agreement to be informed to a Rent Authority (see below).

Even where it's optional, registration costs little compared with the protection it gives both sides. If you're renting out a flat worth ₹1 crore, do it.

Stamp duty on rent agreements: the basics

Stamp duty on leases is set by each state and usually works on the total rent for the term, sometimes plus the deposit or interest on it, with different rates for short and long terms. For an 11-month agreement it's typically a few hundred to a few thousand rupees. Buy e-stamp paper through the state's authorised system (SHCIL in many states) or pay online where the state offers e-registration. Use our stamp duty calculator for property purchases; for leases, check the lease article in your state's Stamp Act schedule or ask the sub-registrar's office.

By convention the tenant often pays the stamp duty, but that's a matter for the agreement. Write down who pays.

Rent agreement format and registration checklist

A downloadable template is fine as a starting point. Make sure it covers these clauses, and cross out anything that doesn't apply:

1. Parties: full names, addresses and ID details of the landlord (every co-owner) and tenant.
2. Property: flat number, tower, society, city, and carpet area.
3. Term and start date, and how renewal works.
4. Rent, due date and mode of payment, and the yearly increase (5% to 10% is common).
5. Security deposit: amount, when and how it's refunded, and what can be deducted.
6. Maintenance and utilities: who pays society maintenance, electricity, water, piped gas.
7. Lock-in period, if any, and the notice period (one or two months is usual).
8. Repairs: minor repairs by the tenant, structural repairs by the landlord.
9. Use: residential only, no subletting without written consent.
10. Inventory: an annexure listing fittings, appliances and furniture, with photographs.
11. Entry: landlord visits on reasonable prior notice.

Attach the inventory and sign every page. Two witnesses are standard.

Security deposit norms by city

There's no national cap on deposits. Practice varies by city: one or two months' rent is normal across Delhi NCR, higher amounts are common in Mumbai, and Bengaluru has long been known for deposits of six months or more. The states that have passed new tenancy laws cap it, as does the Model Tenancy Act.

A fair agreement says the deposit is refunded on the day the keys are handed back, less documented dues and damage beyond normal wear and tear. "Painting charges" deducted as a fixed sum from every tenant aren't damage. If you're the tenant, photograph every room at move-in and move-out.

The Model Tenancy Act: what it says and where it applies

The Union Cabinet approved the Model Tenancy Act on 2 June 2021. It's a model law, not a law in force. It only applies where a state or union territory passes its own legislation based on it. Its main features:

• Every tenancy in writing, with the landlord and tenant informing a Rent Authority within two months.
• Security deposit capped at two months' rent for homes and six months' for commercial premises.
• Rent Courts and Rent Tribunals to settle disputes quickly.
• Clear notice rules for rent increases and for eviction.

Only a few states have laws along these lines. Uttar Pradesh passed its Urban Premises Tenancy Regulation Act in 2021, requiring agreements to be informed to the Rent Authority and capping residential deposits at two months. Tamil Nadu had already passed a similar tenancy law in 2017. In most other states, the older rent control law and the general rules above still apply.

Social media posts about "new rent rules" often describe the Model Tenancy Act as if it were in force across India. It isn't. Check your own state's law, or ask a local advocate, before relying on a deposit cap or a registration deadline.

Tax points for landlords and tenants

• A tenant claiming HRA needs the landlord's PAN if rent exceeds ₹1 lakh a year.
• Individuals and HUFs not under tax audit who pay rent above ₹50,000 a month must deduct 2% TDS on the rent.
• Rent paid to an NRI landlord attracts TDS at 30% plus surcharge and cess, with no threshold.
• Landlords declare rent as income from house property, with a 30% standard deduction on the annual value.

Before you sign

• Landlords: complete police verification of the tenant where your city requires it. Delhi and Mumbai police both run online tenant verification.
• Tenants: ask to see the landlord's title document or the latest maintenance bill in their name. If the person renting to you isn't the owner, ask for the owner's written consent.
• Both: keep rent receipts or bank transfer records. Cash rent without receipts helps nobody.

If you are listing a flat for rent, you can post your property on IndiProp. If you're weighing whether to rent or buy, the home affordability calculator and Navi Mumbai property rates pages give a quick sense of what an EMI would buy instead.

Frequently asked questions

Is registration of an 11-month rent agreement compulsory?

In most states, no, because only leases of more than one year must be registered. Maharashtra is an exception: every leave and licence agreement must be registered regardless of its term. The agreement must still carry the correct stamp duty.

Who pays stamp duty on a rent agreement?

The law lets the parties decide. By convention the tenant often pays, but the agreement should say who pays stamp duty and registration charges.

How much security deposit can a landlord take?

There's no national limit. The Model Tenancy Act suggests two months' rent for homes, and states that have adopted similar laws, such as Uttar Pradesh, cap it by law. Elsewhere the deposit is whatever the agreement says.

Is the Model Tenancy Act applicable in my state?

Only if your state has passed its own law based on it. It is a model law approved by the Union Cabinet in 2021, and only a few states have enacted tenancy laws along its lines.

Sources: PRS India: The Model Tenancy Act, 2021 · India Code: Registration Act, 1908 and Transfer of Property Act, 1882 · IGR Maharashtra: Department of Registration and Stamps