Online Lease Agreement in Hyderabad

Security Deposits in Hyderabad

The security deposit and advance are terms that are often used interchangeably. However, the security deposit serves the specific purpose of safeguarding the property from damage caused during tenancy. The amount is collected by the owner at the beginning of the tenancy and it sums up to about 2-3 months worth of rent. That is also the legal limit for security deposits. 

The clause also mentions that the owner must return the deposit at the end of the tenancy. However, the owner is also allowed to inspect the property before the tenancy ends and make the appropriate deductions based on the damage caused. The damages can range from broken tiles to damaged electricals, etc. The inspection for damages is carried out by the landlord in the tenant’s presence to avoid disagreements. 

Advance payments on the other hand only protect owners from rent defaults. However, in some scenarios, the advance payments are also adjusted towards the end of the lease term.

What is Lease Duration and Renewal?

Every lease agreement format for house in Hyderabad states the duration within which the agreement is legally binding. This may range from one to many years and there are different rules when it comes to residential and commercial spaces. However, a common factor among all lease agreements is the inability to change the clauses during an ongoing term.

More often than not owners and tenants decide to extend the lease term which calls for a renewal. This is the time when clauses can be changed and rent can be raised as well. However, every change needs to be signed off on by both parties.

The Telangana Buildings (Lease, Rent and Eviction)  Control Act 

The Telangana Buildings (Lease, Rent, and Eviction) Control Act is the main instrument that balances the rights held by landlords and tenants within Hyderabad. The act was first introduced in 1953 and has been upheld ever since. Certain provisions within the act read out as follows:

• Landlords should always charge a rent that falls within the legal limits of ‘fair rent’ set by the government. 
• Once the ‘fair rent’ is decided, the landlord cannot raise the rent unless there are renovations, additions, or improvements made at their expense. 
• The rental raise cannot surpass 6% of the total cost incurred by the landlord during renovations.
• Every tenant must receive a rent receipt once rent for a month is paid.
• If the landlord wants to evict a tenant, they need to apply with the controlling authority first. The controller will allow the tenant to respond and then decide if eviction is fair.
• The landlord may request the tenant to vacate the premises if they genuinely require the space to make repairs.

E-Stamping and Stamp Duty for Lease Agreements in Hyderabad

The government charges certain taxes to legalise a lease agreement in Hyderabad and it is known as Stamp Duty. This charge varies from state to state and needs to be paid while the agreement is drafted. To carry out this procedure the landlord, tenant, and two witnesses must visit a notary public. After the draft is complete, both parties and their witnesses must sign the document. Once the notary public attests and stamps the document it is legally valid. 

Thanks to NoBroker, now landlords and tenants can do it from the home/office while sitting 1000s of kilometres away from each other. The website allows you to not just draft an agreement but also digitally sign it and get it stamped online. This eliminates all the middlemen who might ask for extra money which is not charged by the government. Here are the rules and regulations set on stamp duty for lease agreements in Hyderabad:

• The stamp duty is 0.4% of the total rental amount (monthly rent x lease duration) when the term is less than a year.
• For agreements exceeding a year but not crossing 5 years, the stamp duty is 0.5% of the average annual rent.
• Similarly, it is 1% of the average annual rent for periods between 5 to 10 years.
• For terms falling between 10 to 20 years, the stamp duty shoots up to 6% of the average annual rent. 

Documents Needed to Draft a Lease Agreement in Hyderabad

The making of every legal document needs some identity and address proofs for verification. The house lease agreement format Hyderabad also sees the same rules being applied. Both parties must share copies of the following:

• Aadhar Card
• Driver’s Licence
• Passport
• Voter’s ID

Additionally, the owner must also share the ownership deed of the space and tax receipts about the same. 

How Can NoBroker Help?

By logging onto the NoBroker website, you enter a world of convenience where everything can be done with the click of a button. Not only can you draft a lease agreement in Hyderabad from home, but you can also refer to thousands of other drafts stored on the portal. Our legal team also peruses your document to ensure its validity. You can also use digital signatures on the agreements now that they are legally valid. All you need to do is pay a minimal service charge at the end and your job is done. You can also use your preferred mode of payment as there are many to choose from. So log in today and make the lease agreement drafting process as simple as it was meant to be.