Rent Agreement Period In India

A lease provides for a short-term lease agreement, which will be renewed later after the period expires. Typically, a landlord and tenant make a lease for a period of 11 months with the option of a regular extension. Since the current rental brake law is largely tenant-friendly, but only applies to leases of at least 12 months, the introduction of an 11-month pact helps landlords take preventive evacuation measures. Due to the archaic nature of this law, the new model rental law was recommended in 2019. The tenant must pay a stamp duty that varies from state to state, as well as the registration fee (varying between Rs 500-1,000) when registering rental contracts. In Uttar Pradesh, the stamp duty on the lease is four per cent, while it is 0.25 per cent in Maharashtra. Under the 2019 Model Rental Law, landlords cannot increase pre-tenancy for the entire period for which a lease has been signed. For example, if the lease expires after 11 months, the lessor cannot increase the monthly rent during that period. Only after this period and at the time of registration of the new lease is the lessor legally entitled to make an increase in interest rates that generally does not exceed 10% of the existing amount.

In addition, the lessor must announce the tenant three months in advance before increasing the rent in accordance with the bill. In India, the tenant also pays a deposit or advance to the lessor, which must be reimbursed at the time of termination of the contract. Normally, it is calculated somewhere between 2 or 3 months and up to 10 months of rent. The deposit is paid at the time of signing the contract. On the other hand, although a lessor may immediately bring an action for the eviction of a tenant after the expiration of the eviction notice, in accordance with section 106 of the Transfer of Ownership Act, it cannot initiate such proceedings if rent control laws apply, unless it is able to prove the existence of one of the grounds for eviction under the laws in force in that State. . . .

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