Introduction: Rent Agreement Format Online

If you are a landlord or tenant and want to draft a rent agreement, you can download the rent agreement format given below in this article. But before that, you should understand what a rent agreement is and what its use is. In this article everything is mentioned along with the advantages and disadvantages of a rent agreement, types of rent agreements, and the process to draft one, the correct rent agreement format and the rest.

Rent Agreements are very common these days because people are migrating from small villages to big cities for many different reasons. Many people start living in a new city for their studies. Many leave villages in expectation of earning handsome amounts in a city. Many are forced by situations to live in a different city because of transfers in their job or job change etc. In a new place you don’t have your own house you have to live in a rented property. And this triggers the need for Rent Agreement between the landlord and the tenant.

What is a Rent Agreement?

A rent agreement is a document where all the terms and conditions are mentioned to use the rented premises. It is agreed upon and signed by both parties in a proper rent agreement format. It prevents both parties from unwanted behavior towards each other and ensures that both parties adhere to their respective obligations. The rent Agreement ensures easy dispute resolution between the landlord and the tenant in case of any misunderstanding that may arise over time.

Download Rental Agreement Format in Word and PDF

You can easily download the Rent Agreement Format in the different format below:

Types of Rent Agreements

A tenant can get into various kinds of agreements based on his specific need that may depend on the kind of possession, duration of the agreement, renewal terms etc. Different types of agreements are mentioned below:-

• Rental Agreement

The rental agreement can be signed for any period between the parties as per their requirement, will and understanding. These are regulated by Rent Control Act. Different states have their rent control acts and prescribe harsh rules and regulations in favour of tenants to prevent unfair evictions. Although Rental Agreements of less than 12 months do not fall under the ambit of the Rent Control Act and hence are preferred by the landlords. It can also be renewed from time to time.

• Licence Agreement

Licence Agreements are used to provide temporary possession of the property to the tenant. These are mostly short-term agreements and are renewed from time to time. The licence agreement does not give an exclusive right to the tenant while the tenant has a licence to occupy the premises for the said period.

• Lease Agreement

Lease agreements are very different from both of the previously mentioned agreements. The lease agreement gives an exclusive right of possession to the tenant for the period mentioned in the agreement. Lease agreements are governed by Rent Control Act and rigorous laws have to be followed in this type of agreement. These agreements are used when the owner of a property wants to transfer full possession of the property in favour of the tenant for a long period.

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Difference b/w Rent, Lease, and License Agreement

A rent agreement is used to give possession rights of the property to the tenant for the period described in the agreement. The license agreement gives temporary access to the licensee to use the premises for the period mentioned therein. While the lease agreement is used to give long-term possession of the premises to the lessee. Based on the use case parties may choose the relevant type of agreement for them.

Advantages & Disadvantages of Rent Agreement

A rent agreement gives many advantages to both parties. Parties together can discuss the terms and conditions to be placed in the agreement and sign thereto. It prevents subsequent disagreements between the parties. The tenant can live for the said period in the rented premises without any worry. There will not be any sudden rent hike in between the term of the agreement and the Tenant only need to pay the pre-decided fixed hike after the set period.

Along with many advantages, the rent agreement also comes with some disadvantages. If the agreement is made for one year or more, it has to be registered with the appropriate authorities and the tenant has to pay the fee of registration which is a percentage of the rent amount decided between the parties. It has clauses regarding the payment of rent which must be followed and the tenant has to pay rent on time and he does not enjoy flexibility in terms of date with the landlord. Clauses regarding the date of eviction can also force the tenant to leave the premises on the agreed date if the landlord is not willing to renew the agreement. Stamp duty has to be paid for all rent agreements irrespective of the duration.

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Who needs a Rent Agreement?

If you are moving into a new rented place, make sure to sign a rent agreement and read all the terms and conditions carefully. You can ask the landlord to modify any term if you think that such a term is not in your best interest and may fall against you in some situations. If the agreement is for one year or more then it is also required to be registered with the appropriate authority as per the provisions of the Registration Act.

In cases when tenants request the Income Tax Department for HRA deduction they are required to have a legally binding rent agreement. It can also be used as an address proof for various purposes. 

Rights & Duties of Tenant and Landlord

Any agreement between both parties gives rise to rights and duties towards each other. The tenant has the right to possession, right to use and enjoyment of the property, right to use utilities attached to the premises like water and electricity, right to use the way to access the premises etc. Duties of the tenant include timely payment of the rent, taking care of the premises and maintaining it in the same position as received from the landlord.

While the landlord enjoys the right to receive rent from the tenant on a fixed date, inspect the premise as per the procedure agreed upon in the agreement, renovation of the premises etc. While the landlord also needs to fulfil the duties to keep the premise in live-able condition, the supply of resources like water and electricity etc.

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State wise Provisions on Rent Agreements

Different states have drafted and passed a rent control act in their respective jurisdiction to safeguard the interest of tenants. An act was passed in 1948 by the central government subsequently states have amended this act and enforced it in their state to recognize regional interests, diversity and requirements.

For example, Maharashtra Rent Control Act prescribes the establishment of Rent Courts while Rajasthan Rent Control Act does not have any such provision. Maharashtra Rent Control Act also prescribes a maximum rent limit that landlords can charge while the Rajasthan Rent Control Act does not impose any limit. Delhi Rent Control Act is more tenant-friendly while the Uttar Pradesh Rent Control Act is more landlord friendly and allows easier eviction for tenants.

Full Rent Agreement Format

Before you start drafting your rent agreement go through this rent agreement format and include all the fields as follows. A rent agreement starts with the name of both parties to the agreement with the full address. First, the name of the landlord is mentioned followed by the name of the tenant. After the name of the parties, an ownership clause is written with the full address of the premises followed by an acceptance clause to let out the said premises by the landlord. After these basic details, all the terms and conditions which both parties agreed to, follows next. These clauses include:-

• Rent Amount
• Duration of the agreement
• Security Deposit and Refund Policy
• Date of Payment of Monthly Rent
• Prohibition of Sub-Letting
• Prohibition Regarding Permanent Alterations in the Premises
• Limitations on Purpose of Use of the Premises
• Rules Regarding Rent Increment
• Rules Regarding Inspection of the Premises
• Rules regarding payment of utility bills
• Maintenance Rules
• Consequences on Vacation of premises Before Maturity
• Rules on Misuse of Resources
• Interference with the Utility Meters
• Consequences in case of Infringement of Terms of the Agreement
• Compensation Rules in case of Damage to the Premises
• Consequences in case of involvement into Illegal Activities

After all the terms and conditions, this part ends with a self-declaration followed by name and signatures of both parties and two witnesses. And that is the rent agreement format one should use whenever he wants to let out his property or live in a rented premise.

Documents Required for Rent Agreement Format

The following documents are required to be attached to the agreement after formatting it in the correct rent agreement format:-

• Proof or evidence of property ownership
• Passport-size photographs of both parties
• Photo ID of both parties
• Address Proof of both parties

Process of Signing a Rent Agreement Format

The Rent agreement has to be drafted as per the given rent agreement format. After that, it must be attached with a non-judicial stamp paper. Stamp paper can be bought from the sub-office registrar of the municipality or e-stamp paper can also be used. E-Stamp paper is easily available and can be downloaded online from the government website then it can be used after printing on paper. Now, these papers can be signed by both parties and this will become a legally binding agreement between the parties.

Some states also made it easier for tenants and landlords by introducing online facilities to sign a legally binding rent agreement. This service was introduced in GB Nagar in September 2022. These are called e-rent agreements and are very helpful, safe and reliable for both parties. So you can look out whether such a service is available in your city or not. If online service is not available in your locality you can always download the rent agreement format from here.

Read Our Blog: Download Rental Agreement Format PDF and Word

Validity of the Rent Agreement

Validity of the Rent Agreement can be decided by the parties on mutual understanding and written into the rent agreement format. After the expiration of such period agreement has to be renewed else it will collapse on the last date and will no longer be legally valid and enforceable against any of the parties.

Cancellation/Termination of the Rent Agreement

Landlords usually includes a clause in the agreement that describes the consequences if the tenant wishes to vacate the premises and terminate the agreement before the period is over. Rental agreement formats have that clause included which can be filled by the landlord. He may put some amount to receive in such a pre-mature termination of the agreement. The Tenant may vacate and leave the premises after paying the pre-decided fine/charge or security deposit to the landlord. After execution of such clause, both the tenant and the landlord are free from any obligation towards each other according to the agreement.

Conclusion

It concludes the detailed guide on the rent agreement format. If you are a landlord you can download and use this rent agreement format with your tenant. All the terms are explained in this article. We hope now you understand what a rent agreement is, why is it important, what are its benefits of using a rent agreement format and the process to draft and sign the rental agreement.