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Renting & Lease Agreements

Rental Agreement in India: How to Make and Register One

A rental (tenancy) agreement is a stamped written lease; register it if the term exceeds one year, and always in Maharashtra.

AS

Written by Aarav Sharma

Updated on 17 September 2026·7 min read

On this page10 sections
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A rental agreement (also called a tenancy agreement or rent agreement) is the written contract in which a landlord lets a home or shop to a tenant for rent. In most states you print it on stamp paper of the value your state prescribes and both sides sign with two witnesses. It must be registered if the term is over one year.

Maharashtra is stricter: every leave and licence or tenancy agreement must be registered, whatever its length, and you can do it online.

Key facts

Rule Position in September 2026 Law
When registration is compulsory (most states) Leases from year to year, for more than one year, or reserving a yearly rent Registration Act, 1908, s.17(1)(d); Transfer of Property Act, 1882, s.107
Effect of not registering a lease that needed it Cannot be received as evidence of the transaction Registration Act, 1908, s.49
Maharashtra Every leave and licence or letting agreement must be written and registered; the landlord is responsible Maharashtra Rent Control Act, 1999, s.55
Stamp duty Set by each state; in Delhi the tenant (lessee) pays State stamp law
Security deposit cap Two months’ rent (homes), six months’ (shops), only where a state has adopted the model law Model Tenancy Act, 2021, s.11

Why most rental agreements run for 11 months

Section 17(1)(d) of the Registration Act makes registration compulsory only for leases from year to year, for a term over one year, or reserving a yearly rent. An 11-month term stays outside that, so the parties skip the sub-registrar. Nothing stops you renting for longer; the 11-month term is a paperwork habit.

The trade-off is proof. An unregistered agreement still binds the two of you, but a registered one is far stronger if the deposit or the terms are disputed later. Our rent agreement rules page explains that trade-off, and the clauses to include, in more detail.

Rent agreement or leave and licence?

A lease (rent or tenancy agreement) transfers a right to enjoy the property, under Section 105 of the Transfer of Property Act. A leave and licence, defined in Section 52 of the Indian Easements Act, 1882, only permits the licensee to use the premises and creates no interest in them. Maharashtra’s stamp law has a separate article (36A) for leave and licence, which is why agreements there are usually drafted that way.

What goes into a tenancy agreement

  • Names, addresses and ID details of landlord and tenant
  • Exact address of the premises, the portion let, and parking
  • Rent, due date, payment mode and yearly increase
  • Security deposit and when deductions are allowed
  • Term, lock-in period and notice period for each side
  • Who pays maintenance, society charges and utility bills
  • Repairs, subletting and alterations
  • Signatures of both parties and two witnesses

How to make a rental agreement (most states)

  1. Agree the rent, deposit, term and notice period in writing.
  2. Work out the stamp duty for your state and term.
  3. Buy stamp paper or an e-stamp certificate for that value. In Delhi, e-stamp paper up to ₹500 is sold by authorised vendors; higher amounts are paid through listed banks.
  4. Print the agreement on, or attach it to, the stamp paper.
  5. Sign it, with two witnesses, and give each party an original copy.
  6. If the term is over one year, book a slot at the sub-registrar’s office and register it with both parties present.
  7. Report the tenant to local police if your city or state requires tenant verification.

A notary attests signatures; notarisation does not take the place of registration where registration is compulsory.

How to register a leave and licence agreement online in Maharashtra

The Department of Registration and Stamps runs the Leave and License 2.0 portal. The person filing needs a biometric fingerprint device (Mantra or SecuGen) and a webcam.

  1. Open leaveandlicense.igrmaharashtra.gov.in, click Register, create a user and log in with the OTP.
  2. Click New Document Entry. Choose residential or non-residential and who pays the stamp duty and fee: licensee, licensor or both equally.
  3. Enter refundable and non-refundable deposits, fixed or varying rent, the period (1 to 60 months) and the lock-in.
  4. Add the property, the parties (details are fetched from Aadhaar with OTP) and two witnesses.
  5. Click Calculate & Save to get the stamp duty, then pay stamp duty and registration fee through GRAS, and the document handling charge through SBI ePay.
  6. Capture each party’s and witness’s photo and fingerprint, and complete Aadhaar biometric eKYC.
  7. Fill the tenant information for police records (permanent address, work details, family) and upload address proof (PDF up to 2 MB). The portal generates a police information report from it.
  8. Check the final draft, submit, and download the registered deed, Index II and receipt from the dashboard.

Stamp duty on a rental agreement: states we checked

State Term Stamp duty Registration fee
Maharashtra (leave and licence) Up to 60 months 0.25% of total rent + non-refundable deposit + 10% a year interest on the refundable deposit Shown by the portal calculator, with the document handling charge
Maharashtra Over 60 months As a lease under Article 36 As per fee table
Delhi Less than 1 year 2% of the whole rent payable ₹1,000 + ₹100 pasting fee, if registered
Delhi 1 to 5 years 2% of the average annual rent ₹1,000 + ₹100 pasting fee

Example for Delhi: an 11-month agreement at ₹20,000 a month has total rent of ₹2,20,000, so the stamp duty is ₹4,400. Other states use different rates; see our stamp duty by state page and check your state’s own schedule before you buy stamp paper.

The Model Tenancy Act and “new rent rules”

The Union Cabinet approved the Model Tenancy Act on 2 June 2021 and sent it to states on 7 June 2021. It is a template, not a law that applies by itself. Under the model text, every tenancy must be in writing and reported to a Rent Authority within two months, and the deposit is capped at two months’ rent for homes and six months’ for shops. In July 2022 the Housing Ministry told Parliament that Andhra Pradesh, Tamil Nadu, Uttar Pradesh and Assam had revised their tenancy laws on those lines. Posts claiming one national set of “new rent rules” are wrong: your state’s own rent law decides.

Tenants paying high rent may also have TDS duties; see TDS on rent. For disputes over large deposits or long leases, a property lawyer can check the draft.

Frequently asked questions

What is a rental agreement?

A written contract in which a landlord lets premises to a tenant for rent, setting the term, deposit, notice period and duties of both sides. It is also called a rent or tenancy agreement.

Is a tenancy agreement the same as a rental agreement?

Yes, in everyday use. Legally both are leases under the Transfer of Property Act. A leave and licence agreement is different because it grants only permission to use the premises.

Is an 11-month rent agreement valid without registration?

Yes, outside Maharashtra, because a lease of one year or less is not compulsorily registrable. It must still be stamped as your state requires.

Is registration compulsory for rent agreements in Maharashtra?

Yes. Section 55 of the Maharashtra Rent Control Act, 1999 requires every leave and licence or letting agreement to be registered, and puts that duty on the landlord.

Who pays stamp duty on a rent agreement?

In Delhi the lessee (tenant) pays. In Maharashtra the portal lets you choose licensee, licensor or both equally.

Is a notarised rent agreement enough?

Notarisation only attests signatures. Where registration is compulsory, a notarised but unregistered lease cannot be received as evidence of the transaction.

Is the security deposit limited to two months’ rent?

Only in states that have adopted the Model Tenancy Act. Elsewhere the deposit is whatever the parties agree.

Sources

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