Rent Agreements: 10 Clauses Every Landlord and Tenant Should Check

A large share of quarrels between landlord and tenant begin with a term nobody put on paper, or one that was worded loosely. Spending an hour on the agreement at the start protects both sides later.

Why many agreements are for 11 months

Under Section 17(1)(d) of the Registration Act, 1908, a lease of immovable property from year to year, for any term exceeding one year, or reserving a yearly rent must be registered; Section 107 of the Transfer of Property Act, 1882 says the same for such leases.¹ Many people therefore choose 11-month agreements. A shorter agreement still needs proper stamp duty, and it does not take away the protections that tenancy law gives.

Tenancies are also governed by state rent laws, which differ from state to state: for example, the Maharashtra Rent Control Act, 1999, the Delhi Rent Control Act, 1958 and the West Bengal Premises Tenancy Act, 1997. In 2021 the Union Government circulated the Model Tenancy Act for states to adopt or adapt.² Many of these laws give tenants specific rights; Section 4 of the West Bengal Act, for instance, requires the landlord to give a signed written receipt for rent received.³ Always check the law of the state where the property is located.

Ten clauses to check

1. Parties and property: full names, addresses and an exact description of the premises, including parking and common areas.
2. Rent and due date: amount, the date by which it is payable, and how it is paid.
3. Rent increase: whether and by how much rent can be increased at renewal.
4. Security deposit: amount, and when and how it will be refunded, with any permitted deductions.
5. Term and renewal: start date, duration and the process for renewal.
6. Notice period: how much notice either side must give to end the arrangement.
7. Use of premises: residential or commercial use, and whether subletting is allowed.
8. Maintenance and repairs: who handles minor repairs, major repairs and society charges.
9. Utilities: who pays electricity, water and other charges, and how meter readings are recorded.
10. Handover condition: an inventory of fittings, and the condition in which the premises must be returned.

Good practice

• Pay rent through a bank or UPI, or insist on signed receipts.
• Complete tenant verification with the local police where it is required.
• Keep signed copies, and photographs of the premises at the start and the end.