If you want to know, can we make rent agreement for 2 years? I’d like to say Yes, a house rent agreement can indeed be 24 months or even longer. However, it’s common for rent agreements to be made for 11 months to avoid stamp duty and other fees.
Can You Have a Rent Agreement for 2 Years?
Keep in mind that if the term of the lease agreement exceeds 12 months, it is mandatory to register it under the Registration Act of 1908. So, whether you’re renting out your property for a shorter or longer duration, ensure that the terms are clearly documented in a legally binding lease agreement. Let’s also explore the differences between 11-month and 24-month agreements:
Factors |
11-Month Agreement |
24-Month Agreement |
Duration |
Typically used for short-term rentals in India. It lasts for 11 months. |
Longer-term commitment, spanning 24 months. |
Legal Framework |
Stems from the Indian Rent Control Act. By keeping it under 12 months, parties avoid stringent rules of the Act. |
Subject to the Act’s provisions if it exceeds 12 months. |
Purpose |
Common for residential leases, especially when parties want flexibility or are uncertain about long-term arrangements. |
More stable and suitable for tenants seeking extended stays. |
Flexibility |
Allows easy termination after 11 months. |
Less flexible due to the longer commitment. |
Registration |
Often unregistered, but registration is advisable for legal clarity. |
Registration is recommended for both parties’ protection. |
In summary, choose based on your needs: short-term flexibility or longer-term stability. Always consult local laws and consider your specific situation when deciding on the duration of your rental agreement.
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Hi,
Yes a house rent agreement can be 24 months or even more. But usually a rent agreement is made for 11 months only, in order to avoid stamp duty and other fees. The Registration Act of 1908 mandates the registration of a lease agreement if the term is more than 12 months. Stamp duty and a registration fee must be paid for any agreement that is registered.
If a home needs to be rented out for 24 months for a monthly rate of Rs 22,000 for the final 12 months and Rs 20,000 for the first 12. The registration fee for this agreement is 2% of the average monthly rent for a year, or Rs. 5,040 (average monthly rent is Rs. 21,000; average yearly rent is Rs. 21,000*12; and 2% of that is Rs. 5,040).
The total cost would be Rs 6,240 if the agreement required a security deposit in addition to an additional Rs 100 and Rs 1,100 for registration fees. The professional fees owed to attorneys or other middlemen for all the paperwork are not included in this.
Most tenants and landlords unanimously agree to forego having the agreements recorded in order to avoid incurring these fees. Tenant and landlord may agree to split the expense of registering a lease.
I hope I was able to help you with your query.
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Authors Of The Question
Can a house rent agreement be of 24 months?
Dr. Veer
1229 Views
2 Answers
2 Year
2022-10-06T14:55:00+00:00 2022-10-06T14:55:01+00:00Comment
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