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What is Rent Agreement?

To formalize the home renting process, a tenant and a landlord must put the terms and conditions of the verbal agreement in writing and get the document registered to provide it legal validity. This document is known as the rent agreement or the rental agreement. Note that verbal agreements between the landlord and the tenant have no legal backing. And, in case of any future disputes between the two parties, neither the tenant nor the landlord will be able to approach any legal authority to claim relief, if the rent agreement is not executed and duly registered. Under the recently passed Model Tenancy Act 2019, states could set up rent authorities in cities, where landlords and tenants would have to go to the rent agreement registered.

A rent agreement typical takes about the specifics of the tenancy which includes names of the tenant and the landlord, their addresses, the duration of tenancy, the monthly rent, the responsibilities pertaining to property maintenance, penalties on default, etc.

Why is a Rent Agreement necessary?

It is important to have a rent agreement in place to take care of any disputes that may arise between landlord and tenant, due to varied reasons like:

  • Tenant subletting the Property
  • Landlord increasing rent without prior notice
  • Tenant setting up business in the house premises
  • Landlord denying returning the security deposit
  • Tenant damaging the property

Apart from some of the pointers mentioned above, there are many such disagreements that might arise during tenants stay in the property. To take care of all such disputes well in advance, a proper govt-approved rental agreement needs to be in place. Rent agreement is a documented proof for the terms and conditions that have been agreed between the landlord and tenant while renting a property.

What are the various details that are mentioned in a Rent Agreement?

The various details that are listed in a rent agreement are:

  • Details of both the parties
  • Terms of payment
  • Notice period clause
  • Lock in period duration
  • Date of execution of agreement
  • Purpose of lease: Whether for residential or business purpose
  • Yearly increment terms
  • Annexure: Which includes all the list of items in the house like light, bulb, bed, table, etc.

For details regarding the format of online rent agreement or viewing a rent agreement sample, one can check Rent Agreement Format.

What are the benefits of creating rent agreement online on Housing.com?

One can create the rental agreement online on Housing.com. It is completely hassle-free and an online rental agreement is created instantly just by filling in the required information. Once the online rental agreement is created, it is mailed to both the parties, i.e. landlord and tenant for getting it signed. Apart from the convenience factor, the online rental agreement facility offered by Housing.com is quite cost effective as well.

Currently the facility to create online rent agreement is available in all the major cities of India like Bangalore, Delhi, Gurgaon, Hyderabad, Chennai, Kolkata, Faridabad, etc.

Which all cities is Online Rental Agreement service available in?

Digital Rental Agreement service is available in 18 states and 100+ cities such as Bangalore, Gurgaon, Delhi, Noida, Hyderabad, Mumbai, Pune, Kolkata, Chennai, etc.

What is the process of creating the Rent Agreement online?

An online rent agreement can be created by filling in the owner-tenant-property details, making the payment, and digitally signing the agreement. A PDF of the online rent agreement will be shared with owner and tenant/s after everyone has signed.

What details an online rent agreement must have?

Details that an online rent agreement must have include:

  • Name and addresses of the landlord and the tenant
  • Digital signatures of the landlord and the tenant
  • Type of tenancy
  • Duration of tenancy
  • Monthly rent
  • The extent of increase in rent every year
  • Security deposit
  • Terms and conditions of the tenancy
  • Responsibilities of the land lord and the tenant

While a standard rent agreement will have all these details, you can also customize the online rent agreement according to your specific requirements.

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What our users say

Rajiv Dhawan
Housing’s online rent agreement service acts as a one-stop-shop for tenants like me. Really appreciate the facility. Housing is a highly recommendable platform for tenants and landlords.
Victor Suri
Really appreciate the ease Housing’s online rent agreement facility provides. It is as if they know what a tenant generally goes through and have tried to address the very same issues.
I appreciate the help I got from the online rent agreement facility on Housing when shifting to a new rented home in Kolkata. Will certainly use it again and again.

Journey So far…

😊 Happy users

Frequently asked questions

Is an online rent agreement valid?

Online rent agreements that are executed on e-stamp paper and signed by both the parties, are legally valid documents. Online rent agreement can be used as address proofs.

Will I get a hard copy of this online rent agreement?

As the entire process is completely online, you will not require a hard copy. You can get a copy of this agreement on your email ID, or you can download it in the PDF format.

How do I sign the online rent agreement?

Both the parties — the landlord and the tenant — can sign the rent agreement digitally. You can either choose the 'Customised text' format, or draw your signatures in the online rent agreement. Note here that digital signatures are have legal validity and act as a secure manner of signing various documents, including online rent agreement, electronically.

How much stamp duty is payable on online rent agreements?

The online rent agreement is drafted on e-stamp paper having denomination value of Rs 100.

Why is the online rent agreement only for 11 months' tenure?

If a rent period is created for 12 months, it falls under the category of a lease agreement, and several laws will come into effect, complicating the process for both, the tenant and the landlord. Rent agreements drafted for a period of up to 11 months fall under the category of a leave and license agreement, and the applicability of the lease-related laws does not occur. Rent agreements of 11-month tenure do not require registration. This applies to online rent agreements as well. So, such documents can be executed and signed online and are legally valid.

Can I edit the clauses mentioned in the online rent agreement?

At present, Housing Edge platform has a pre-existing set of clauses, which covers almost everything in your online rent agreement. You can customise the security deposit amount and notice period in your online rent agreement. We expect to bring in more customisations soon.

How much time does it take to create an online rent agreement?

Using the Housing Edge platform, an online rent agreement can be created in a matter of minutes.

How can my tenant/landlord sign this rent agreement online?

The Housing Edge platform sends the link to the second party through email and SMS, on the contact details provided by you. Once the online rent agreement is signed, we will send the notification to the first party, along with the audit trail.

What are the charges for creating the online rent agreement?

The charges for creating online rent agreement will be INR 699, which will include GST, processing fee and stamp duty. Of this, Rs 100 is paid as the stamp duty, while the remaining includes the convenience cost and the taxes, etc.

Can I execute and sign the online rent agreement from anywhere in the world?

Since a digital signature is required to execute an online rent agreement, the document can be digitally signed from any part of the world, any time.

Can I add multiple tenants in this agreement?

Yes, you can add a maximum of 5 tenants per agreement.

What if my landlord/tenant claims that they never signed the rent agreement after digitally signing it?

Once the online rent agreement is signed, we will send the soft copy of the document to you, on your email ID, along with the audit trail, which will have complete information about the IP address, device information and other details that the second party used, for signing the document.

Do I need to get the online rent agreement printed, or is a soft copy sufficient?

As the online rent agreement is executed and signed digitally, you can keep the soft copy for record purposes. Printing online rent agreement is not necessary.

What are the documents required to make the online rent agreement?

You do not need any document to make the online rent agreement. However, keep the tenant's/landlord's contact information handy, as it will be required while creating the draft.

What is the legal validity of a digital signature?

Digital signatures or e-signatures have the same legal status as handwritten signatures, under the Information Technology Act (IT Act), 2000. Digital signatures have the same legal validity as the physical signing.