Can we extend residential rental agreement beyond 3yrs?

Hi, I think you can do that. My friend has been living in 1BHK flat for the last 7 years (she has literally completed her grad, postgrad and now she is working). In the initial years, she signed two contracts of 11 months with the landlord but when it was finalized that she wasn’t gonna move out, she asked the landlord if they could sign an agreement for 5 years. The landlord agreed and they shared the expenditure. Stamp duty was 2% of the total rent amount and since there was a security deposit involved, an additional amount of Rs. 100 was paid. Did you know? For an agreement of up to 5 years then the stamp duty charged will be at 2%, if the agreement is for 5 years to 9 years, then the stamp duty will be charged at 3%, whereas for an agreement above 9 years, stamp duty is chargeable at 6%.

There is no legal restriction on extending a

rent agreement time period

beyond 3 years.

The

rental agreement duration in India

is typically set at 11 months. It could be extended at the end of the term. It is done to avoid the registration and stamp duty associated with longer-term leases.

In fact, the maximum duration for residential rental agreements is also not given in the Transfer of Property Act, of 1882. If both the landlord and the tenant want to extend the rental agreement the initial term, they could do so by drafting a renewal agreement.

Here are some important points to consider:

1. Registration

   : While there is no maximum duration, rental agreements exceeding one year are required to be registered with the local Sub-Registrar office.

2. Stamp Duty

   : The stamp duty is also applicable to rental agreements.

3. Notice Period

   : The terms and conditions of the renewal agreement should clearly outline the notice period.

4. Rent Increases

   : The rent for the extended term can be renegotiated. If there are any changes in the rent, it should be clearly mentioned in the agreement.

5. Legal Consultation

   : It's recommended to both parties, to seek legal advice while extending a rental agreement.

Please note that the laws and regulations for rent agreement time can vary from state to state and may change over time.

Need help with legal documentation? Contact No Broker

 Read more

How to Get Gas Connection for Rented House

How do you write a letter to terminate a rental agreement?

How Much you can Increase the Rent 

It is possible to extend the rent agreement for 3 years in India. I was renting an apartment in Mumbai, and my lease was set to end in three months. I wrote to my landlord asking for the extension since I wanted to prolong the lease for an additional three years. Once the landlord consented to the extension, we signed a new rent agreement. I was permitted to stay in the flat for an additional three years once the new rent agreement was registered with the local government.

What is the maximum period of rent agreement?

There is no such fixed period to determine the tenure of rental agreement. If you are thinking about the rent agreement can be made for how many years, I’d like to say that apart from 11 months, a rent agreement for 5 years, two years, or even longer can be made. 

Check out Hassle Free Tenant Verification services via NoBroker

There is no such rule for the rental agreement maximum period. The choice is made jointly by the renter and the landlord. Typically, an 11-month residential lease is chosen by both parties since it does not need to be registered, which saves on stamp duty. The parties can also extend or renew the residential rent agreement tenure as often as they like.

What happens if the lease term exceeds 12 months?

If the specified tenancy length is 12 months or more, the agreement must be registered. A lease for a period of 12 months or longer would be considered void if it is not registered, in contrast to an 11-month agreement that is still legally binding even without registration.

It is essential to make sure that everyone concerned, including the landlord and the tenant, is aware of and accepts the maximum period of rent agreement extension's terms. By doing this, confusion is established and future misunderstandings or conflicts are avoided.

Need help drafting a rent agreement? Get a legally valid rent agreement online here

Read More:

How to Fill Tenant Verification Form Online? How much does it charge to make a rental agreement in Bangalore?  What is the procedure to register a rental agreement? 

Hey,

I find the process of shifting and moving into a rented house every eleven months bothersome. Each time I have lived in a rented house, the landlady has made a rental agreement of eleven months. This time around, I asked the landlady. If an extension of rent agreement was possible or not? Much to my surprise, she said yes. 

If you want help with drafting a rent agreement. Check out NoBroker Rent Agreement Services for a hassle-free experience.

Pay Utility Bills through NoBroker & Get Assured Rewards!

According to Registration Act 1908, if a property is leased for a week it will need to be registered. Most landlords tend to get contracts drawn for eleven months to avoid this lengthy process and not pay any extra registration charges. 

If your rental agreement is getting expired, you can renew it after consulting with your landlord. If you don't renew it, you will have to move out of your house. 

Offline Process :

The Rent agreement maximum period is decided by the renter and the landlord. Once the tenure is decided you will have to prepare a draft and print the draft on Rs.100 e-stamp paper. The draft will only be seen as a legal contract once it has been notarised and signed by the landlord, tenant, and witness. 

Online Process :

The process of getting an agreement offline is tedious. If you are like me and wish to delegate the task to another party. Check out the NoBroker Online Rent Agreement service. The experts will get your agreement drafted while conducting due diligence on the property. Give it a shot and let me know how you liked it.

Is a 5-year rental agreement possible?

Yes, absolutely it is. You can rent a place for two years, five years or seven years. You just need to get a construct drafted and attested by the parties involved. Most agreements have a renewal clause as it is. Though, the registration charges for a five-year rent agreement are higher than the standard eleven-month contract. 

Until your agreement is registered, it will not protect you under the renter’s Act. A duly signed contract is legally valid. This is all from my end on an extension of rent agreement 

Read more :

How to create rental agreement online?

How can an NRI make a rental agreement for a house in India?

How to register a rent agreement?

Generally, we hear about Rental Agreements with a tenure of 11-months. But, there is no provision as such that the rental agreement can only be for a specified period of 11 months.

A residential

rent agreement for 3 years

to 5 years, 11 months or more can be made. But, both the tenants as well as the landlords make a rental agreement for 11 months to avoid the stamp duty charges. 

Draft a rent agreement online for your property without any hassle with NoBroker Rent Agreement services

Therefore, A Residential Rental Agreement can be extended beyond 3 Years. I should tell you that there is no defined

maximum period of lease agreement. It depends on the agreement and arrangement between the parties. 

 

States	Time Frame of the Lease/Rent Agreement	Amount
Delhi	Up to the time of 5 years	2 %
Noida	Up to the time of 11 months	2 %
Karnataka	Up to the time of 11 months	1 % of the total paid rent plus INR 500/ Annual deposit (whichever is lower)
Tamil Nadu	Up to the time of 11 months	1 % of the rent along with the deposited amount
Uttar Pradesh	Within one year	4 % of the yearly rent paid plus deposited amount
Maharashtra	Up to the time of  60 months	0.25 % of the overall rent
Gurgaon	Up to the time of 5 years From 5 to 10 years	1.5 % of avg. yearly rent paid 3 % of avg. yearly rent paid

So, to answer your query:

can I make rent agreement for 3 years? Yes, you absolutely can.

Read more:

How to make rent agreement in Gurgaon

How to make rent agreement in Delhi

Is it possible to make rent agreement in more than one person’s name?

If you’ve ever stayed in a rental property or given property for rent, then you must have signed a rental agreement. Have you ever wondered why most rent agreements are for 11 months or whether you can extend the residential rental agreement beyond 3 years? Generally, neither tenants nor landlords know the reason. But worry not, read below to know about the rent agreement validity period:

You can extend the residential rental agreement beyond 3 years. However, most of the time, the rent agreement duration is of 11 months to avoid stamp duty and other charges. As per the Registration Act, 1908, the registration of a rental agreement is necessary if the rental period is more than twelve months. If an agreement is registered, then you need to pay the registration fee and stamp duty for it.

Avoid Legal Issues in the Future by Making a Rental Agreement Online via NoBroker

For example, in Delhi, for rent of up to 5 years, the stamp paper cost is 2 percent of the total average annual rent of a year. If a security deposit is part of the agreement, then add a flat fee of Rs. 100. For a lease that exceeds five years but less than ten years, it is 3 percent of the average annual rent value of a year. For ten years and more but less than twenty years, it is 6 percent of the average annual rent value of a year. The stamp paper can be in the name of the landlord or the tenant. Plus, a flat registration charge of Rs. 1100 needs to be paid by demand draft.

If a property is let out for 2 years at a monthly rent of Rs. 20000 for the first year and a monthly rent of Rs. 22000 for the next year, then the rent agreement registration charges would be 2 percent of the average rent for 1 year: Rs. 5040, (average monthly rent is Rs. 21000, average annual rent is 21000x12 and 2 percent of that is Rs. 5040).

Plus if the security deposit is part of the agreement, add another Rs. 100 and Rs. 1100 as registration cost—bringing the total cost to Rs. 6240. This doesn’t include the professional fees of lawyers for all the paperwork.

Rental Agreement Extension

To sum up, the residential rental agreement can be extended beyond 3 years but the landlord prefer to make the rent agreement of 11 months to avoid stamp duty and other charges.

Read more:

How to make rent agreement format?

How to do online police verification for rent agreement?

Now you know about the rent agreement validity.

Residential agreements can be from 11 month, 3 years to 5 years or more. Generally, people (both tenants as well as landlords) make a rental agreement for 11 months. This is done to avoid the stamp duty charges. However, there is no such rule that the residential rental agreement cannot be extended. You can extend the agreement for 3 years or even 5 years. But, the charges (stamp duty charges) will be more if the duration is more. For instance, in Delhi, the stamp paper cost is 2% of the total average annual rent plus Rs.100 for the security deposit paid up to 5 years. For anything between 5 years and 10 years, it is 5%.