How to make a Rent Agreement?

Everyone in this world has dealt with a rent or a lease agreement by either providing something or by acquiring something for some time be it a service, place, or a thing. Most rent / lease agreements are signed-up for leasing buildings for personal or for corporate use. 

What is a rent agreement?

A rent agreement is a legal document between two parties, landlord (someone who is offering something) and tenant (someone who is leasing something). The rent agreement covers all the details about the place / service, time, details of two parties and a witness. The rent agreement is based on some terms and conditions, most of the conditions are introduced by the government and some are introduced by the landlord or the tenant.

*(All the terms and conditions must be followed as per the agreement or any breach in those by the landlord or tenant will result in legal punishments / actions.)

What are the terms and conditions of a rent agreement?

The basic terms and conditions in rent agreement are set by the Indian government as per the Model Tenancy Act. The basic terms and conditions are –

The signing of rent agreement is compulsory between the landlord and the tenant. If the property or the service is leased without signing the rent agreement, then both the parties will be punished as per the law and legalities.

All the details of landlord, tenant, property / service should be present in the rent agreement with the signatures of the two parties and witness along with the official seal of the government.

There should be a time period in the agreement. In the case of the expiry of the agreement, the rent agreement should be renewed as per the law.

All the major terms and conditions and add-on regulations must be written in the agreement before leasing the property / service no further changes are allowed.

The rent pr ease charges / other costs must be disclosed in the agreement.
The rent agreement must be acquired with the renewal conditions and with the exit clause (if the landlord or tenant want to exit from the leased property / service).

What are the types of rent agreement?

There are basically two different types of rent agreement, ‘Rental Agreement’ and ‘Lease and License Agreements.’ Rental agreements are generally for 11 months, while the ‘Lease and License Agreements are of 12 months.’ All the conditions are same in both the agreements.

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It is mandatory to sign a rent agreement before acquiring any property or service. We hope that our article has provided you the information that you were looking for. To know more about interesting facts and articles keep reading our articles and keep following us.


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