Rent agreement in Hyderabad

Here is the detailed process to draft and register a rent agreement in Hyderabad

Job, money, health, education and entertainment – what more do you want, when you live in a city? Hyderabad, a well-planned technological and capital city of Telangana, has everything that can uplift your life and make it easier and comfortable.

IT companies and several manufacturing industries have extensive presence in Hyderabad. So, there is consistent demand for residential apartments here. You can get all types of rental properties in Hyderabad and depending on your budget, you can choose one that suits your needs.

While taking a property on rent, be careful about adhering to the agreement rules. Rental disputes are quite common in India and Hyderabad’s realty market is no exception.

Getting the rent agreement right, can solve many of your problems. The rent agreement stipulates the terms and conditions, mutually agreed upon between the tenant/renter and the property owner/landlord. Rules related to the rent agreement may vary across cities/states in India. So, depending on the city where you want to occupy a rental property, you should carefully understand the rules pertaining to the agreement, accordingly.


Process of preparing rent agreement in Hyderabad

Here are the key steps for preparing a rent agreement:

  • Get the ‘mutual consent’ of both, the landlord and the tenant, on the various rental terms and conditions related to the agreement.
  • Print the points that have been mutually agreed upon in an agreement/plain paper.
  • Read the points mentioned in the agreement paper, to verify the same and avoid any discrepancy.
  • At the end, the agreement is required to be signed by two witnesses.

See also: Laws related to registration of property transactions in India


Why rent agreement is for 11 months?

Legitimacy of the rent agreement is normally not affected, whether the rent agreement is for 11 months or more. However, the Registration Act, 1908, mandates registration of a lease agreement, if the rent period is more than 12 months. So, people sometimes prefer a leave and license agreement for 11 months, so that they can save on stamp duty and registration charges. At the end of 11 months, both the parties can renew the rent agreement on mutual consent. It is important to note here that the registration of rent agreement is compulsory at some places, irrespective of whether the tenure is 11 months or more.


Is it mandatory to register a rent agreement in Hyderabad?

Rent agreement registration can enforce legal binding on the contract between the landlord and the tenant and make them adhere to the agreed terms and conditions. As mentioned above, it is not mandatory to register a rent agreement in many places, if the rent agreement period is less than 12 months. However, it is advisable to get it registered, as it can help in avoiding all kinds of disputes in the future.

Please note that only written agreements can be registered and become legally enforceable. So, do not rely on an oral agreement, if you plan to get it registered and to avoid legal dispute in the future.


How to get a rent agreement registered in Hyderabad?

Following are the key points that can help you get your rent agreement registered in Hyderabad:

  • Visit the nearest sub-registrar’s office for getting the agreement registered.
  • Registration of the rent agreement can be done within four months of the creation of the deed.
  • At the time of the registration, both parties must be present, along with two witnesses.
  • If either the landlord or tenant or both are not present, the registration process can be completed by the power of attorney-holder of one or both the parties.


Documents required for registration of a rent agreement in Hyderabad

Documents required for making an agreement in Hyderabad are:

  • Tax receipt or Index II.
  • Address proof of both the parties (for example, passport, Aadhaar, driving licence, etc.).
  • Keep the original ID and address proofs with you, for verification.
  • Identity proof (for example, a copy of the PAN card or Aadhaar card).
  • Copy of title deed, as proof of ownership.


Online rent agreement facility by

You can check out, one of the best platforms available in the market, to create online rent agreements. The entire rent agreement process is done online. This means, the agreement can be created from home and there is no need to step out of your house. The agreement is directly sent to both, the landlord and the tenant, through email. The process is contact-less, hassle-free, convenient and cost-effective. Currently, assists landlords/tenants to create online rent agreements in 250+ cities of India.


Online rent agreement


Benefits of online registration of rent agreement in Hyderabad

Though road infrastructure is excellent in Hyderabad, it is not spared from heavy traffic during the working days and often, people have to bear traffic congestion. Therefore, opting for an offline rent agreement registration can take away much of your precious time. The online agreement creation and registration facility is fully operational for Hyderabad city. By opting for an online agreement, you can save both, time and money. Some of the reputed portals now offer hassle-free online rent agreement services to their customers. You can use their services to get your job done, while saving time.


How much does a rent agreement cost in Hyderabad?

Rent agreement registration usually includes three types of charges, namely, stamp duty, registration fee and the legal advisor fee (if you hire an advisor).

Rent agreements have to be stamped with a stamp duty charge, as per the charge applicable in a particular state or city. Stamp duty applicable in Hyderabad is as mentioned below:

Rent period of less than 1 year: 0.4% of the total rent payable in the lease.

Rent period of 1-5 years: 0.5% on the average annual rent.

Rent period of 5-10 years: 1% on the average annual rent.

Rent period of 10-20 years: 6% on the average annual rent.

The charges applicable on the registration of the rent agreement usually vary from state to state. In Hyderabad the registration fee is 0.1%. If you hire a legal advisor, their fee may cost you extra, over and above stamp duty and registration fee.


Points to keep in mind when making a rent agreement

A rent agreement protects the interests of both, the landlord and the tenant. Some important points that you should keep in mind when making a rent agreement are as mentioned below:

  • Landlords can hike the rent, within prescribed limits under the rental law applicable in the state. If there are any structural changes in the property or maintenance was done, the rent can be revised accordingly, on mutual consent of both the parties.
  • There should not be any ambiguity in the terms and conditions mentioned in the agreement.
  • Always mention the details of the fittings and fixtures in the property, in the rent agreement.
  • Tenants are entitled to receive rent receipts towards payment of rents.



Having no agreement can result in a painful legal dispute between the landlord and the tenant. A wrongly drafted agreement can result in a situation that may fail to serve the purpose for which it was created. So, if you want to avoid any sort of legal dispute that may arise between the landlord and the tenant, ensure that you make an error-free rent agreement. A rent agreement is beneficial for both, the landlord and the tenant. So, if you plan to rent out your apartment or get an apartment on lease, make sure you make the rent agreement from the right place and under an expert’s guidance.



What is a token advance?

A token advance is a small amount of money given by the prospective tenant to the landlord, to ensure that the property is not given on rent to any other person. After payment of the token advance, both the parties cannot back out of the deal and if done so, the losses incurred thereof is paid by the party which backs out.

What are the vital clauses that should be mentioned in the rent agreement?

Some of the vital clauses that should be mentioned in the rent agreement include points related to maintenance charges, penalty on late payment of rent, cleaning and painting of the premises, minimum lock-in period, details of all the occupants, etc.


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