Renting a place for the first time can feel overwhelming, especially in a city like Delhi NCR, where the housing market is diverse, fast-paced, and often confusing. Whether you’re moving into a PG, flat, or shared apartment, having a well-documented rent agreement is one of the most crucial aspects of your housing journey. This guide will walk you through everything you need to know about rent agreements — why they’re essential, what they should include, common pitfalls, the legal registration process, and even the subtle differences between renting and leasing.
Why students need a rent agreement
Many students either ignore or overlook the importance of a formal rent agreement, especially when moving into a PG or sharing a flat. However, a rent agreement safeguards your rights as a tenant and offers legal protection in case of disputes. It provides clarity on rent, duration, maintenance, notice period, and several other crucial aspects that prevent misunderstanding between the landlord and the tenant.
Without a written agreement, you might face arbitrary rent hikes, sudden eviction, or disputes over the security deposit. In Delhi NCR, landlords are also required to inform the police about new tenants. A rent agreement often facilitates this legal process.
Here are some of the major benefits of having a rent agreement:
- Legal protection: It protects both the tenant and the landlord in case of disputes.
- Proof of residence: Can be used as address proof for official purposes like Aadhaar updates, SIM card applications, or banking.
- Required for education loans: Many financial institutions ask for valid residential proof while processing student loans.
- Clarifies roles and responsibilities: Defines who pays for repairs, utility bills, and ensures both parties are on the same page.
- Peace of mind: Offers mental clarity and confidence about the stay, especially in a new city.
Types of student accommodations
Students in Delhi NCR usually opt for:
PGs: Popular for affordability and convenience, usually including meals, furniture, and utilities. PGs often have informal verbal agreements, but it’s always better to get terms in writing.
Affordable PGs start from ₹6,000–₹10,000 depending on location and meals.
Flats: Students often co-rent 1BHK or 2BHK flats, and rent agreements are usually mandatory. Shared flats in areas like Laxmi Nagar, Mukherjee Nagar, or Noida Sector 62 range from ₹8,000–₹15,000 per person per month.
Hostels: University or private hostels usually offer predefined contracts, and hostel fees vary depending on the university.
What a rent agreement should include
Here’s a breakdown of all the essential elements that a rent agreement must contain:
Names and addresses of both parties
Clearly mention the full legal names and permanent addresses of both the landlord and the tenant. If you are sharing with roommates, their details should be listed separately.
Property details
This includes the exact address of the rented premises, number of rooms, floor, amenities, parking facilities, and whether the flat is furnished or not.
Rent amount and due date
Mention the fixed rent amount and the date by which it should be paid each month. Include any clauses regarding annual hikes (e.g., 5% or 10% after 11 months).
Security deposit
Typically, landlords in Delhi NCR ask for 1–3 months’ rent as a security deposit. Make sure the agreement clearly states the deposit amount and under what conditions it will be refunded. Ideally, a receipt or acknowledgment of receiving the deposit should be attached. Ensure the agreement outlines any deductions that can be made (e.g., for damage to property) and the timeline for returning the balance.
Lock-in period
Some agreements include a lock-in period — a minimum duration before which neither party can terminate the contract. Breaking the contract during this period may lead to a penalty or forfeiture of the deposit. Ensure this clause is fair and clearly defined.
Maintenance charges
Specify if the rent includes monthly maintenance or if it’s paid separately to the Resident Welfare Association (RWA) or the landlord.
Notice period
Both landlord and tenant must agree on a reasonable notice period (usually 1 month) before terminating the agreement. This protects both parties from abrupt exits.
Subletting clause
This clause states whether the tenant can sublet the property (allow someone else to live in their place temporarily). In most cases, landlords prohibit subletting unless given prior written permission. Make sure this is mentioned clearly to avoid legal complications.
Entry and inspection rights
Landlords should only be allowed to enter the premises with prior notice, typically 24 hours in advance, except during emergencies. This clause protects your privacy.
Term of agreement
Generally, rent agreements are made for 11 months to avoid registration fees under the Registration Act. They can be renewed at the end of this term.
Common pitfalls to avoid
- Verbal agreements: Always insist on a written and signed agreement. Verbal promises are not legally enforceable.
- Unclear clauses: Avoid vague terms like “rent may be revised” — the percentage and timing of the rent hike should be clearly written.
- No police verification: Ensure the landlord submits tenant verification at the nearest police station — this protects both parties.
- Paying in cash without a receipt: Always pay rent digitally or get a receipt for cash payments.
- Not reading fine print: Students often skip reading clauses that might affect them, like maintenance liability, overnight guest policies, or pet restrictions.
How rent agreements are done in PGs
In PG accommodations, rent agreements are often informal or not provided at all. However, it’s your right to request a document that at least outlines the rent, facilities provided (meals, housekeeping, WiFi), and notice period. Ensure that the owner mentions rules such as curfews, guest policies, or security charges.
If you’re renting with roommates
When renting with roommates, make sure everyone’s name is on the agreement. This ensures all tenants are equally responsible for rent and any property damage. Decide in advance how bills will be split, how notice periods will be handled if one roommate leaves early, and whether you’ll rotate whose name is on utility accounts.
Also, choose a primary point of contact for the landlord to streamline communication. In case you’re subletting one room, make sure the landlord agrees in writing.
Legal difference between rent and lease agreements
- Rent agreement: Usually for 11 months, renewable, and easier to terminate. It’s more flexible and suited for short-term stays.
- Lease agreement: Generally long-term (over a year), involves more legal formalities and registration. Breaking a lease might involve penalties.
Students usually opt for rent agreements due to their short-term academic schedules.
How to get your rent agreement registered
While 11-month rent agreements don’t require registration under Indian law, registered agreements offer greater legal security.
Procedure:
- Draft the agreement on stamp paper of ₹100 or higher.
- Both parties must sign in the presence of two witnesses.
- Visit the Sub-Registrar Office (SRO) to register. Some states offer online registration.
Notary process:
- If you’re getting it notarised instead, ensure that:
- It bears an official notary stamp and serial number.
- The notary’s license number is visible.
- Both parties and witnesses have signed.
Always keep a signed physical copy with you. Make sure your name, ID proof, rent, and dates match across the agreement and rent receipts.
Notary charges:
- Usually between ₹200–₹500, depending on the value of the rent and location.
What documents are required for a rent agreement
- Aadhaar card and PAN card of both parties
- Passport-sized photograph of the tenant
- Proof of ownership from landlord (electricity bill, sale deed, or property tax receipt)
- Passport or visa (for foreign students)
Pro tip: Whether you’re signing a rental contract or moving into your first flat with friends, take your time, read every clause, and never hesitate to ask questions. This is your home away from home; it should feel just right.
How to get help in finding the right home and legal aid
Students can take help from:
- Property platforms like housing.com to browse verified listings.
- College housing cells and student groups.
- Legal advice from portals like Vakilsearch or LawRato.
- Contact government helplines or local police stations in the event of fraud.
You can also request a broker to assist with documentation, but always check their credibility and fees in advance.
Housing.com POV
At housing.com, we understand how overwhelming it can be to navigate housing decisions during college life. From verified listings in student-friendly areas to detailed rent insights and filters for fully furnished or WiFi-enabled rooms, we aim to make the housing process simple, transparent, and safe.
Our focus is to provide students with the confidence to choose a place they can truly call home, backed by trustworthy listings, legal support tools, and a user-friendly interface that saves time and effort.
FAQs
A rent agreement is typically short-term, usually lasting 11 months or less, and is often renewable. A lease agreement is generally for a longer duration, such as one year or more, offering more security and legal structure. For students, rent agreements are more common due to their flexibility.
Yes, it is advisable to notarise a rent agreement. Notarisation gives the document legal validity and helps ensure it can be presented as proof in case of disputes. It involves verifying the identities of the landlord and tenant and getting the document officially attested by a notary public
In Delhi NCR, most PGs and flats charge a security deposit that ranges from one to three months’ rent. This amount is refundable at the end of your stay, provided there are no damages or unpaid bills. Always make sure the deposit amount is clearly mentioned in your written agreement and that you receive a receipt.
Verbal agreements are technically valid but not advisable. In case of any legal issues or misunderstandings, a written and signed rent agreement carries much more legal weight. It’s always safer to document the terms clearly, even in informal rental arrangements.
Generally, both tenant and landlord are required to provide valid ID proofs such as an Aadhar card or passport. Passport-size photographs and PAN card details of the landlord are often required. Some landlords may also provide proof of ownership of the property. Depending on local requirements, you may also need witnesses during the signing process.
Yes, they can. While PGs and hostels usually function on verbal terms or internal rules, students can request a written rent agreement. Some private hostels offer predefined contracts, while PG owners may agree to draft a short-term rent agreement if asked.
Before signing, confirm that the agreement clearly states the rent amount and due date, the security deposit amount and refund terms, the duration of stay, the notice period for vacating, maintenance responsibilities, guest rules, and any termination clause. Make sure that the written terms align with your verbal discussions to avoid future confusion. What is the difference between a rent agreement and a lease agreement?
Is it necessary to notarise a rent agreement?
How much security deposit is usually taken for student rentals?
Are verbal rent agreements valid?
What documents are needed to make a rent agreement?
Can rent agreements be made for PGs and hostels too?
What should I check in my rent agreement before signing?
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |