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Rental Agreements


A rent agreement, also known as a lease agreement, is a written contract between the owner of a property (the landlord) and the tenant who takes it on rent. It is good to have a written rental agreement in place if the relationship between the landlord and the tenant is strained or in case any misunderstanding arises. It is a legal document which may be referenced by courts in the event of a disagreement. 

Thus, a rental agreement lays out the basic details of the property, the owner of the property, the renter (also called tenant), and the prescribed terms and conditions under which the rented property is leased out, like, the term of the rental and the amount of the rent for the said term. Also called a rent deed and lease deed, a rental agreement is binding on both the landlord and tenant.

The purpose for which the property may be used can be residential or commercial. There are two types of agreements that deal with property rental in India, those are, lease agreement and leave & license agreement. 

Lease Agreement

Leave & License Agreement

Rental agreements that are over 12 months.

Rental agreements that are for a period of 11 months.

Registered with the local authorities.

Not required to be registered.

Strict Rent Control Laws put up by the State government apply.

Rent control laws do not apply in most states.

Mostly favourable to the tenant as the rental control laws prevent the landlords from overcharging the tenants and protect the tenants from sudden or unfair eviction.

Mostly favourable to the landlords as the landlord has more measures to take in case of eviction of tenant from the property.

The right to ownership of the property gets transferred from the landlords to the tenants.

The right to ownership of the property remains with the landlords.


  • A rental agreement or lease deed can be used by the lessor (landlord) or lessee (tenant) of a property. 
  • It is signed by the lessee and lessor, indicating consent to the conditions placed by the lessor. 
  • The rental agreement once drafted should be printed on a stamp paper of suitable stamp value according to the Stamp Act of each State to make it legally valid.
  • The agreement must also contain signature of the witnesses along with name and address.
  • The rental agreement is usually signed on payment of deposit for the rental property between the lessor and the lessee. 
  • Two copies of the document are usually executed, with each party retaining one of the original copies.

Important contents of a rental agreement include:

  • Names of the landlord and tenant and/or their agents.
  • Description of the property.
  • The purpose for which the property is to be used and terms and conditions regarding use of the property.
  • Period for which the rental agreement will be in effect.
  • Amount of rent, mode of rent payment, due dates, grace period, late charges, etc.
  • Amount of security deposit and conditions for return or adjustment of deposit at the end of the rent period or on cancellation of the contract.
  • Utilities included by the landlord and those which utilities the tenant is responsible for.
  • Party responsible for repairs and maintenance of the property
  • Terms and conditions for Termination & Extension of the rental agreement.


To create your own rental agreement online-

  1. Visit our website http://www.thelegalcapsule.com
  2. Select the document you want to create from our extensive range of legal document templates.
  3. Fill in the template with your details.
  4. Use our ‘Expert Advice’ option to add or amend clauses.
  5. Review your document once completed.
  6. Download and print the completed document on stamp paper. Or, opt to have documents printed on stamp paper and delivered to an address of your choice.
  7. E-sign your document using Aadhaar based verification.