What is a Rental Agreement?
Rent Agreement is nothing but a mutual agreement between the landlord and the tenant which lays down the details such as the duration, the rental amount, terms and conditions and responsibilities of both landlord and the tenant. Having a rent agreement in place can save time and trouble for both landlord and the tenant. In case of a landlord, the agreement ensures that the rent is being paid on time and the property is being maintained by the tenant, for the tenant, it ensures that the landlord does not change the terms of the rent according to his/her will or ask you to vacate the property.
How Rental Agreement Online Work?
Choose type of Rental Agreement
Enter Landlord, Tenent & Property info
Review Draft & confirmation
Print Rental Agreement
Procedure To Get The Rental Agreement
To draft the rental agreement, you need to do the following
- Discuss important matters like rent, security deposit, maintenance charges etc.
- Prepare a rough draft with details like names of parties involved and address of the property clearly mentioned
- Add important clauses to the document
- Purchase stamp paper of recommended value online
- Print your draft on the stamp paper.
- Alternatively, you can use our Online Rental Agreement Service in Delhi and we will do it all for you.
- Place signatures of both tenant and landlord, in the presence of two witnesses
- Register the deed at local Sub-Registrar office
How To Register a Rental Agreement
The Registration Act, 1908, maintains that, among the documents that require compulsory registration, “leases of immovable property from year to year, or for any term exceeding one year, or reserving a yearly rent” as one. Hence, if the duration of your Lease Agreement exceeds or is 12 months, the registration of the Lease deed/Rental Agreement becomes imperative.
For the purpose of registration of a Rental Agreement after the draft is printed on a Stamp Paper of respective denomination, the document shall be presented for registration in the Sub-Registrar Office situated within the sub-district of the location of the immovable property.
At the time of Execution of a Rental Agreement in Delhi, both the parties, the Tenant and the Landlord, along with two witnesses have to be present. If not, only that person authorized to do so through a Power of Attorney is counted as a permissible presence during the attestation of Rental Agreement. Registration by any other person or agent is prohibited. The stipulated Registration fee is to be paid through a bank pay order – Cheque or Demand Draft. Sub-Registrar Offices in Delhi from the following areas like Sub Registrar IV Seelampur, Sub Registrar IV a Shahdara/Seemapuri, Office of Deputy Commissioner – North East, Nand Nagri.
At the time of registration, if you should come across any officer appointed by the government misusing the resources at his/her disposal or is the cause of an injury to the applicant, you can always report the same to the court. Under the Registration Act of 1908, the suggested breached of law can be held and put to prison up to 7 years.
Documents Required For Rental Agreement
For the purpose of Registration of a rental agreement, the following documents are to be enclosed along with the document in order for it to be attested –
- Identity proof of both the parties,
- Title of ownership (landlord),
- Passport size photos of both the tenant, landlord, and witnesses etc.
Things to Keep In Mind for Landlords While Renting
Finding a proper place to rent in a big city like Delhi is a tiresome, energy and time-consuming task. In Delhi, the rent and lease are controlled by The Delhi Rent Control Act, 1958. Before taking the house or flat on rent make sure of these following details below:
- Whether you are directly dealing with the owner or any third party impersonating as the owner.
- Whether there is an agent or broker to whom you need to pay any brokerage or commission charges. Usually, the brokerage or commission is half or full one month rent.
- Verify whether the property belongs to the person who claims to be the owner. For this, you can check the Electricity or Tax bill.
- In case you pay any token advance to make sure you are given a receipt by the owner. Or make it through cheque, DD or online transfer.
- Talk all terms and conditions initially itself.
- There should be a clear written agreement including the important terms and conditions between the owner and tenant.
- The agreement should be printed on a Stamp paper of due Government values.
- Owner and Tenant should sign the agreement
- Register the agreement in the Sub-Registrar office by paying the registration charges whatever be the term of the agreement. A registered agreement is always safe and legally valid.
- Tenant verification at a local police station is compulsory for landlords in Delhi. The Landlord has to provide the details of the tenant to the police and the tenant also has to co-operate in this regard. Failure to do so is punishable under the law.
- Security Deposit – In Delhi, the usual trend is to collect 2 to 3 months’ worth of rent as security deposit. This deposit is to be refunded by the owner to the tenant at the time of the tenant vacating the premises. No interest is paid on deposit amount.
- Token Advance – At the time of blocking the house for rent, the tenant sometimes pays a small token advance to the owner, just to prevent the owner entertaining other potential tenants.
Different types of rental agreement
1. Flat Rental Agreement
The flat rental agreement is used when someone wishes to rent out a single unit in an apartment complex, not the whole property. Such rental agreements have to be drafted with care, with clauses for access rights to common amenities and the rules of the residents association.
2. House Rental Agreement
A house rental agreement, a well-drafted one at that, should be in place before any house rental commence.
3. Commercial Office Agreement
Any individual, business owner or company wishing to take up a property to use as an office can make use of a commercial office lease can rent them using this type of rental agreement in Delhi
4. Room Rental Agreement
Room agreement is much like the conventional rental agreement, but it has slight differences as some facts are different as the landlord only rents a room in the property.
5. Commercial Shop Rental Agreement
Commercial shop agreement will be signed between the owner of the business and the landlord