A rental agreement serves as a contract between two parties: the property owner and the tenant. It grants the tenant possession of the owner's property for a specified duration. Also known as a rent deed or lease deed, this agreement outlines details such as property description, owner and tenant names, lease duration, and rent amount for the agreed period.

The prevalence of 11-month rental agreements is due to the desire to avoid the registration process and associated expenses.

• Registration Act, 1908: This law mandates the registration of lease agreements exceeding 1 year.
• Avoiding Registration: By limiting the agreement to 11 months, landlords and tenants can circumvent the registration process entirely.
• Advantages of Skipping Registration:
  • Reduces the time and effort required for government office visits.
  • Eliminates stamp duty charges, which are based on rent amount and duration.

Additional Considerations:

• Not Mandatory: While 11-month agreements are common, longer-term agreements (with registration) or shorter-term agreements are also permissible.
• Flexibility: An 11-month agreement offers flexibility for both parties. Landlords can adjust rent based on market rates upon renewal, while tenants have a clear end date if they do not intend to stay long-term.

In Summary: The 11-month duration is a prevalent approach to bypass registration requirements and associated expenses in rental agreements.