Rent Agreement Rule: A huge market for renting or living on rent has been created all over the world. Many people move from one place to another in search of better opportunities. Therefore, most of us have either given a house on rent or are living on rent. When we live on rent. To live on rent in our country, tenants have to enter into a legal agreement of rent (Rental Agreements in India 2024) with the landlord for a fixed period. This agreement is for a fixed period. Most landlords get the rent agreement, agreement, or agreement prepared for 11 months as the shortest period.

Have you ever wondered why this agreement is only for 11 months? Let us know the reason for this and the rules related to it.

What is a Rent Agreement?
A rent agreement is a kind of contract in which it is told how the tenant will take the house on rent and what are the rights and responsibilities of the tenant and the owner of the house. These include monthly rent, use of the house, security deposit, rental period, and other things.

Why are rent agreements made only for 11 months?
The biggest reason behind making a rent agreement for only 11 months is the landlord's attempt to avoid legal trouble later. Because legally, in a lease where there is an agreement for a long period, words like rent, tenant, and tenure are often used. This promotes the possibility of the other party (tenant) renting out the property further under rent control laws.

These are tenant-friendly. In case of dispute, this agreement, which comes under the purview of the Rent Tenancy Act, can lead to a long court battle.

What are the legal rules related to rent agreements?
According to Section 17 of the Registration Act, of 1908, a lease agreement for more than one year is compulsorily registered. This means that rent agreements for less than 12 months can be made without registration. This option enables the parties to avoid the tedious process of getting the document registered at the sub-registrar office and paying the fee for it.

Relief from registration as well as saving on stamp duty
Furthermore, when the tenancy is for less than a year, not registering also saves the cost of stamp duty. Hence, usually, the landlord and the tenant mutually decide not to register the agreement to avoid paying such a high fee. As per the rule, the longer the period of tenancy, the higher the stamp duty.

Why do landlords and tenants prefer 11-month rent agreements?
Instead of getting the rent agreement registered, most landlords and tenants get it notarized. It contains the address, current status, and conditions of the rented house, flat, room, etc. along with the signatures of both the parties and witnesses. This agreement can be terminated after a notice from either party at a fixed time. Apart from this, it can also be easily renewed if needed.

Finally, the biggest thing is that due to the 11-month rent agreement, the landlords get the opportunity to increase the rent by 10 percent every year. At the same time, the tenants have the freedom to change the house if they do not like it.