Data available with Makaan.com show that 21 percent of all homeowners who listed their properties for rent on the site expect their tenants to stay for at least a year. Why then are leases only signed for 11 months, one month less than one year? In Uttar Pradesh, for example, stamp duty on leases is four per cent of the annual rent plus the deposit, while the registration fee is two per cent of the deposit. Click here to check the format of a rental agreement in English. In Maharashtra, an increase of 4 per cent per year is allowed, while in Haryana no increase is allowed for five years, once the fair rent has been set. In many states, including Punjab and Tamil Nadu, landlords cannot increase rent unless repair work has been carried out. In the case of improvements made in the premises with the permission of the tenant, an increase does not exceed 1% of the total cost of the improvement is permitted in UP. To avoid these fees, many landlords and tenants mutually agree not to register the agreements. If you want to register a rental agreement, tenants and landlords can agree to share their costs. Other conditions may include an additional charge for late returns, dropping off at another location or failing to recharging the gas just before return. The lease is valid on the date specified in the contract and is then deemed terminated.
If the tenants want to stay in the property, both parties must enter into a new lease. A rental agreement is a contract between a landlord and a tenant that covers the rental of real estate for long periods, usually for a period of 12 months or more. The lease agreement is very specific in detail of the responsibilities of both parties during the lease and contains all the information necessary to ensure that both parties are protected. On the other hand, a lease is advantageous for a lessor because it offers the stability of long-term guaranteed income. It is advantageous for a tenant because it is stuck in the rent amount and length of the rent and cannot be changed, even if the real estate values or the rent increase. Now that you know the difference between a lease and a lease, you are ready to create the right contract for your needs. Use our lease form or lease template to customize, download and print the right contract online in just a few minutes. A tenancy agreement or lease is an important legal document that should be concluded before a landlord leases property to a tenant.