Journal
Renting5 min read

Reading a rent agreement in ten minutes

Six clauses decide whether the next eleven months go smoothly. The rest is boilerplate.

Most Indian rent agreements run to four or five pages of which perhaps a page matters. Here is the page.

Lock-in versus notice

These are different and are often confused. Lock-in is the period during which neither party can exit — leave early and you owe the remaining rent. Notice is how much warning you must give after the lock-in ends. An eleven-month agreement with a six-month lock-in and two-month notice means you are committed to at least eight months.

The escalation clause

Ten per cent a year is conventional. It should be stated as a percentage and a date, not as "as mutually agreed" — that phrase means the number is decided when you have already moved in and have the least leverage.

Maintenance

Who pays society maintenance, and is it included in the rent figure you agreed? On a ₹30,000 flat, ₹4,000 of monthly maintenance is a thirteen per cent difference that people routinely discover in month two.

Repairs

The convention is that the owner covers structural and appliance repairs, the tenant covers consumables and damage. If the agreement is silent, it will be argued about.

Entry

The owner does not have an automatic right to enter. A good agreement specifies notice — twenty-four hours is standard.

Registration

Agreements of twelve months or longer must be registered. The eleven-month agreement is not a legal trick so much as a widespread convention for avoiding registration cost. Know which you are signing.