A rental agreement is more than just a formality — it's a legally binding document that defines the rights and obligations of both landlord and tenant. In India, rental agreements are governed by state-specific Rent Control Acts and the Model Tenancy Act, 2021. Understanding key clauses can save you from disputes and financial loss.
Essential clauses to verify: rent amount and payment date, security deposit (typically 2-3 months' rent in most cities, up to 10 months in Bangalore), lock-in period (usually 6-12 months), notice period for termination (typically 1-2 months), maintenance charges responsibility, and allowed usage (residential/commercial).
Always insist on registering the agreement if the lease exceeds 11 months — unregistered agreements are not admissible in court. Ensure the agreement mentions the condition of the property and existing fittings/fixtures. Take dated photographs before moving in as evidence. Clarify who bears costs for repairs — usually, structural repairs are the landlord's responsibility while minor repairs fall on the tenant.
Red flags to watch for: verbal agreements without documentation, demands for excessive advance rent, reluctance to register the agreement, vague termination clauses, and restrictions not mentioned during property viewing. At Realty Pandit, all rental listings come with standard verified agreements.