The rental agreement or rental contract is drafted on a stamp paper. There are 2 types of rental contracts in India, one being a lease agreement that lasts for a minimum of 12 months. This is governed under Rent Control Laws put up by the State government. The other type is a lease and license agreement of up to 11 months which doesn’t fall under the Rent Control Laws.
Common contents of a rental agreement include:
In India, security deposit or advance is also paid by the tenant to the landlord which is to be repaid at the time of cancellation of the contract. Usually, it is calculated anywhere from 2 or 3 months to up to 10 months of the rent. Security deposits are given at the time of signing the contract.
A part of the security deposit can be used by the landlord towards any damages caused to the furniture, appliances, electrical, or the property itself, by the tenant. After deducting the security deposit towards damages, the landlord is to return the remainder of deposit to the tenant, at the time of cancellation of the contract.