Rental Agreement Format House Rent Agreement Sample and Terms

A rent agreement or house rental agreement is essential for both tenants and owners. This agreement contains all the terms of the rent. House owners who let out their property to tenants and tenants staying on a property must follow the terms laid down in the rental agreement. This article provides the house rent agreement format, types of rental agreements, execution of the rent agreement, and much more.

Rental Agreement

Anyone who wants to stay in a house on rent or get a property on rent, should enter into a rental agreement with the owner of the house/property. The rental agreement is an official agreement entered between the tenant and owner of a property. Tenant is the person who wishes to take temporary possession of the owner's property by paying the rental amount. The tenant can stay/use the property of the owner for the time mentioned in the rental agreement. 

A rental agreement, also called a rent deed and lease deed, contains basic details of the residential property, the owner of the property, the renter (or tenant, as he is also called), the term of the rental period, and the amount of the rent for the said term. 

The rental or rent agreement is drafted on a stamp paper. 

Types of Rental Agreements Commonly Used

There are 3 types of rental agreements in India: 

1. Rent Agreement: Tenancy or rent agreement is a basic contract between landlord and tenant for temporary possession of a property.
   Duration: Typically 11 months and can be renewed at the end of the period (If more than 11 months, registration is mandatorily required).
   Key points:
   1. Covers details like names, property description, rent amount, late fees, grace period, security deposit, facilities, parking, repairs, insurance, etc.
   2. Concise and hassle-free.
   3. Registration is optional if tenure is less than 11 months
       
2. Lease Agreement: Lease agreement is a more formal contract for longer occupancy (usually over 12 months). It is governed by the State's Rent Control Laws.
   Duration: Typically more than 12 months.
   Key points:
   1. Creates an interest in the property, meaning the tenant has certain rights like using it for the agreed period (even if sold).
   2. Can be for extended periods.
   3. Binds both parties for the agreed term.
   4. Mandatory registration: required for legal enforceability.
       
3. Leave and License Agreement: This agreement is a permission to occupy a property, not a tenancy agreement.
   Duration: Flexible.
   Key points:
   1. Differs from lease agreements as it doesn't create an interest in the property.
   2. Revocable by the owner anytime.

   3. Grants "permission" to occupy, not rights.
      No landlord-tenant relationship; easier evictions.

      Rent Agreement Format