What you must know about rental agreements, registration process

According to the Registration Act, 1908, a rental agreement for less than 12 months need not be registered

- Jash Kriplani

Bengaluru-based Sampat Bhansali, 41, has given out one of his apartments on an 11-month rental agreement. Bhansali says he prefers the rental agreement for 11 months rather than getting it registered. "It helps to save registration costs. If you make a two-year agreement and the tenant decides to leave in ten months or earlier, you again need to go through the process of registering a new agreement, getting witnesses, finding an intermediary for the registration, etc.," he says. "However, I ensure I rent the apartment only to a family."

Both tenants and landlords weigh several factors when deciding on the rental agreement. While some prefer an 11-month pact, as agreements under 12 months don't need to be registered unless specific state laws require otherwise, others choose to register agreements regardless of the tenure. Some also prefer agreements with longer tenure, as it gives predictability to both the tenant and the landlord.

However, having no registered agreement with proper terms and conditions can backfire at times. Take the case of Keerthi Sanagasetti. When she vacated her flat in Chennai, her landlord refused to pay back her deposit and instead raised several charges related to general wear and tear. "We had to finally take the matter to the local police station. The cops finally told the landlord that he cannot charge us on these grounds and needs to pay back our deposit," the 31-year-old recalls.

She says she would have preferred to get the rental agreement registered, but up until 2019, registration of rental agreement was not compulsory in Tamil Nadu for 11 months or less. As per the Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenant Act, the rental agreement needs to be registered, regardless of its tenure. "I would prefer a 12-month tenure, as it would give us flexibility as a tenant," she says.