Rental Agreement: A Guide on Residential Agreement Format

Residential Agreement Format
Shivani Jain
| Updated: Jul 15, 2020 | Category: Residential Rental Agreement

In this fast-paced world, gaining and retaining trust is a tough task. Therefore, it is necessary to secure your property with a Rental Agreement. Further, the purpose of drafting this document is to safeguard and protect the interest of both parties. In today’s blog, we will talk about the concept of Residential Agreement Format.

Concept of Rental Agreement

A rental agreement is a legal document between the landlord (owner) and tenant for a fixed period of time. Through this document, a tenant acquires temporary possession in the property. All the terms and conditions of the tenancy are decided by both parties. However, the renewal of the Residential Agreement depends on the wish and will of the owner of the property.

Further, this written agreement is also known as the Rental Contract, and the parties need to draft it on a stamp paper. A rent deed that is not duly registered or notorised will have no legal binding force. Thus, a tenant must pay stamp duty as well as registry charges on the residential agreement.

Furthermore, a registered Rent Deed will be considered as a valid document. That means the parties must get the agreement notorised or registered.

 Lastly, the term of rental and the amount of rent as monthly rent are also covered under this deed.

Meaning of Landlord

In simple terms, the owner of the property is known as the Landlord. A landlord or any person acting on behalf of him/her is entitled to receive a rental amount for the premises. The term “acting on behalf” includes a guardian, trustee, or receiver.

Meaning of Tenant

Any person who pays the rent for a premise is known as the tenant of the property. A tenant occupies possession on the permission of the landlord. Further, the term “tenant” includes subtenant as well.

Contents of Rent Agreement Format

In India, the contents of the Residential Agreement Format are as follows:

  1. Name of the Landlord (Owner);
  2. Name of the tenant;
  3. Details of the Property;
  4. Amount of rent together with the Due Date of Payment and Grace Period;
  5. Term of the Residential Agreement;
  6. Mode of Paying the Monthly Rent;
  7. Charges of Water, Electricity, and Maintenance;
  8. Situations of Contract Termination prior to the Expiration Period;
  9. Amount of Security Deposit;
  10. Process for Handling Emergency Requests;
  11. Any other Rules and Regulations.

Types of Residential Agreement Format

There are mainly two types of Residential Agreement Format prevalent in India:

  1. Lease Agreement
  2. License Agreement 

Standard Terms in a Rent Deed

rent agreement deed

Some of the Standard Terms used in a Rent Deed are as follows:

  1. Names: A rent agreement must include the name of the landlords, tenant, and witnesses.
  2. Amount of Rent: This section comprises the amount which a tenant needs to pay as monthly rent.
  3. Duration of Agreement: The time period for which the landlord has given temporary possession of his property.
  4. Security Deposits: This section includes the amount paid by the tenant to the landlord as an advance.
  5. Terms and Conditions: All the terms and conditions regarding the use of premises are included in this section.
  6. Utilities: This clause contains the facilities offered to the tenant by the landlord.
  7. Insurance Clause: This clause is very much used in Commercial Lease Agreement. It talks about the liability of tenant whether he/she needs to insure the property or not.
  8. Maintenance and Repairs: This section deals with the duty of the landlord and tenant regarding the maintenance and repairs of the property.

Also, Read: Rental Agreement: A Guide on Residential Agreement Format

Steps to check the Legal Validity of the Residential Agreement Format

The steps to check the Legal Validity of a Rental Agreement are as follows:

  1. Rent Deed is drafted on a Stamp Paper [1] ;
  2. Both Parties, i.e., tenant and landlord must have signed at the bottom of each page;
  3. Both Parties must have signed at the last page of the agreement;
  4. Rental Agreement Format must include name, address, and signatures of the Witnesses;
  5. The Agreement must specify the details and dimensions of the property rented out.

Difference between the Rent Agreement and Lease Agreement Rental Agreement Lease Agreement
1 A Rent Deed is a month to month agreement. A Lease Deed is made for a specific time period.
2 In a rent deed, the landlord can amend the rules and regulations, amount of rent, and terms of the rent. However, the same is possible only after giving proper notice to the tenant. In a lease deed, the Lessor does not have the right to modify any rules or regulations or lease terms. A Lessor can make changes only after the expiration of the Lease Deed.

Tenure of Residential Agreement Format

A rental agreement must specify the period of the agreement. Normally, a period of 11 months is considered as the standard time of the rent deed. That means the parties need to get the deed registered and notorised after the expiry of 11 months.

Notorisation of the Rental Agreement Format

The owner of the property needs to notarize the rent agreement for renting out an immovable property. The term “Notorisation” denotes that all the documents are correct, and signs are accurate.

Stamp Duty on Rent Deed

If a Rent Deed is for more than 11 months, then the parties to the Rental Contract needs to get the Rent Deed stamped. The Stamp Duty and Registration Charges vary from one state to another.

Nowadays, one can pay stamp duty to the government through the method of E-stamping. In this method, the parties need to purchase the e-stamp papers from the allotted centres of the respective states. Further, both parties, along with the witnesses, need to sign the deed.

Mandatory Clauses of a Residential Agreement Format

The main clauses of a residential agreement format are as follows:

  1. Amount of Rent;
  2. Security Deposit and other payments;
  3. Duration of Rent Agreement;
  4. Terms for the Renewal of Agreement;
  5. List of Fitting and Fixtures;
  6. Registration of Agreement;
  7. Any other Restrictions imposed by Landlord.

Points to Note in a Residential Agreement Format

The points to keep in mind regarding a rent deed are as follows:

  1. The tenant must check the lock-in period of the agreement. The term “lock-in period” denotes the period during which a tenant cannot vacate the property;
  2. In the case of Sub-letting the property, the tenant must check the sub-let clause in the agreement;
  3. The fundamental duty of a tenant is to check all the details, clauses and terms carefully;
  4. The landlord of the property must get the rent deed verified by the police. Police conduct verification to check the tenant’s background. This practice not only ensures the safety of the landlord and neighbours but also prevents any unlawful activity.

Rent Agreement Format



After discussing thoroughly, it can be summarised that a rent deed plays a significant role in safeguarding the rights of both landlord and tenant. Further, both parties must carefully read all the terms and conditions of the before signing.

Reach out to Swarit Advisors to obtain an end to end assistance and legal advice on the residential agreement. Our experts rank high in drafting legal documents.


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