A rental agreement refers to a legal bond between two parties: the property owner and the tenant. It gives the tenant entitlement over the property owned by the owner for a limited time. This agreement is often called a rent deed or lease deed; it contains property description, names of owners and tenants, duration of the lease, and the amount of rent for the specified period.

Most rental agreements are for 11 months so that the parties can avoid the registration charges required of booking the rent agreement as predicated under the Registration Act, 1908, which mandates the registration of lease agreements exceeding 1 year.

• To Be Exact: Registration Act, 1908, under which registration of lease agreements extending beyond 1 year is mandatory.
• Evading Registration: In this way, both landlords and tenants can completely evade the registration procedure by restricting the tenancy agreement to 11 months.
• Reasons for No Registration:
  • Fewer time and efforts required for visiting government offices.
  • Stamp duty charges are therefore avoided also. Stamp duty is scale and time based on the amount and period for which rent is being charged.

More Information:

• Not Mandatory: While 11-month agreements are the most common, longer (with registration) or shorter agreements are also permissible.
• Flexibility: Making it an 11-month agreement allows both parties to be flexible; landlords can change the price according to market rates every time it is renewed, and tenants know when it will come to an end if they do not want to live there permanently.

In Summary: Thus, the period of 11 months is a general trend toward keeping rental agreements qualitative and avoiding the tangles of costly registration in the process.