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Congratulations on finding that rental house of your dreams. Now begins the paperwork and the formalities stage. It's really crucial to ensure a solid and legally-binding rental agreement is in place before you pay the landlord any deposit or move into the house.
Talking of deposit, did you know that no landlords should be charging more than 2 months of rent as a deposit? But few landlords follow the law, much to the chagrin of home-seekers.
More often than not, the landlord arranges for a rental agreement for you to sign, but in case he refuses to or is unable to do so, the onus of arranging the rental agreement and getting it mutually signed by both parties is on you. It's important to always have a rental agreement in place in case any house-related disputes arise in the future. It also serves as a proof of residence in India in the absence of any other documents. Since I'm now a home-owner in India myself, I have seen both sides of the rental spectrum and I can share what I've learnt both as a tenant and an owner.
Before we get into the format and the text of the rental agreement in India, let's go through the process in details.
The process to get the rental agreement made is:
1) Visit the nearest RTO, or any place where Notaries set up shop. It's usually outside courts or RTOs in the city.
2) They usually have the rental agreement template preloaded on their systems but if you'd like to go prepared with your own, use the below rental agreement template.
3) Have this content (scroll below) printed out on a stamp paper of values ranging from Rs. 100 to Rs. 500. Usually a 100 rupee value works just fine.
4) Ensure all details noted are correct. Especially the tenure, the deposit and the rent increase period.
5) Once printed out, it needs to be signed by you, a witness from your side, and a qualified govt. notary. (It still holds even if not signed by a notary, but it just looks more legit when signed and stamped by one.)
6) Once it's signed by you and stamped by the notary, your landlord would need to sign it.
7) Take a scan/photo of it immediately and have it ready on your phone to keep it handy for any needs.
To make things easier, here's the text of a standard rental agreement in India, modelled on my rental agreement in Bangalore. Do edit and customise it according to the specifics of your arrangement.
Rental Agreement Template
RENTAL AGREEMENT
This Rental Agreement is made and executed on this 24th day of October 2019 by and between:
Mrs. Name, aged about <xx> years
<Address>
<City>
Hereinafter referred to as the LESSOR (which expression shall mean and include, whenever the context so requires, admits her heirs, executors, representatives and assigns) of the One Part :
Ms. <Name> D/o <Name of father> bearing mobile number <xxxxxxxxxxx>, working for <Company name>, <Company address?
Hereinafter referred to as the LESSEE (which expression shall mean and include, whenever the context so requires, admits her heirs, executors, representatives and assigns) of the Other Part :
Witnesses as follows:
Whereas the Lessor is the absolute owner of the second floor of the residential premises bearing <Address of the rental property> which are more fully described in the schedule written hereunder, hereinafter, referred to as the “Scheduled Property”. The Lessee and the Lessor have agreed to accept the lease of the said premises subject to following terms and conditions
1) Rent payable by the Tenant for the said premises is Rs.<xx,000/-> (Rupees .... Thousand only) per month. Rent to be paid within 5th day of every month without fail
2) Deposit An advance amount of <Rs.x,00,000/- >(Rupees ... Lakhs only) paid by cheque and online bank transfer to the Owner in the presence of the following witnesses. And the owner has acknowledged the receipt of the same. This advance amount shall not carry any interest, and the same will be repayable by the Owner to the Tenant while vacating the premises.
3) Duration: The lease shall be for a period of 11 months commencing from: 1.11.2019 and is subject to renewal thereafter on mutually agreed terms and conditions by Lessor and Lessee at an increase of 5% rent.
4) User: The Tenant should use the said premises Residential purpose only and shall not use for any business purpose.
5) Maintenance: The Tenant shall keep the premises in good condition and shall not cause any damages to the premises. In case damages caused then the repair charges should be paid by the Tenant
6) Termination of Lease: In case tenant wants to vacate or owner wants his premises, both the parties should inform each other by giving One month in advance notice.
7) Liability For damages: The Tenant shall pay the painting charges one Month Rent at the time of vacating the schedule premises. Otherwise the tenant will get it painted at their own expenses.
Electricity and water charges: The Lessee shall pay directly to the concerned authorities the electricity charges for which a separate meter has been provided on the premises. The water charges will be shared proportionately by all residents of the premises.
Any suit or proceeding arising out of this agreement shall be instituted at the law courts of Bangalore
S C H E D U L E
All that piece and parcel of the premises situated <Address>. Consisting of, Two bedrooms, 1 hall, 1 kitchen, and 2 bathrooms, with water and electrical fittings.
Fittings and fixtures:
1. Geysers x 2
2. Tubelights x 2
3. Ceiling fans x 4
4. Bulbs x 2
IN WITNESSES WHEREOF both the parties agree and sign this agreement on this day.
WITNESSES:
01. LESSOR/OWNER
02.
LESSEE/TENANT
I hope this post on the Rental Agreement Format in India, especially in Bangalore was useful and you're all set to move into that dream house.
You might now need to look into how to deep-clean the house in 2 hours or less, and how to give the house a makeover if you didn't get lucky with its aesthetics matching with yours.
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