Rent agreement: Why is it limited to 11 months?

Everybody is aware about the rental agreement made for 11 months. But have you ever wondered or asked yourself why the 11 months time period is needed and what is the requirement of the rental agreement? The major need for the rental agreement is to keep track of the interests of both parties: landlord and the tenant. In order to have a cautious approach, rental agreement is the best one.
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Coming to the in-depth understanding of the rental agreement, it is a legal document framed in between tenant and the owner of the property which also safeguards the interest of both these parties. The owner of the property or the person having the attorney from the owner is considered as the landlord. The agreement clearly lays down the rights of the tenant and landlord. It also prevents the unnecessary eviction without prior notice of minimum one month.

The main reason behind the 11 month agreement is to skip the registration process. According to the clause (d) sub section (1) of the Registration Act, 1908, registration of the property that is on lease for a year or more is compulsory. Therefore, the standard duration is 11 months for which the rental agreement is framed.

There is no compulsory rule which says that the agreement can be framed only for 11 months. Renewable or extendable agreements for even three to five years can be framed and registered too. However, the stamp duty for the longer duration of time may differ. There is another provision which also state that one can frame the rental agreement for 36 months with a few additional clauses which includes:

  • Average increase of 5 to 7 per cent on an yearly basis
  • Without mentioning any reason for termination, either party can terminate the rent agreement by giving a three month notice in advance

Therefore, in order to avoid the chaos such as vacating the house or disobeying the landlord’s rules and regulation, rental agreement is very important. Visit the property registrar office, pay the stamp duty on the lease tenure and register the lease.

Pin Click is a technology enabled real estate advisory platform. Our mission is to simplify home search. People who are looking for furnished or unfurnished flats for rent in Bangalore, the PinClick Property Rental vertical helps them find their perfect house. Pin Click has an extensive inventory of furnished and unfurnished houses for rent without brokerage across key locations like Whitefield, BTM, Sarjapur.

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