Avoid These

Common Rent Agreement Mistakes to Avoid

A rushed or poorly drafted rent agreement rarely causes problems on day one — the trouble usually shows up months later, at move-out or renewal. Here are the mistakes we see most often.

1. Vague deposit refund terms

Not clearly specifying what can be deducted from the security deposit (unpaid utilities, damage beyond normal wear-and-tear) or the timeline for the refund is one of the most common sources of dispute at the end of a tenancy. Both should be spelled out explicitly in the agreement.

2. No clear rent escalation clause

If the agreement doesn't state the annual rent increase percentage upfront, renewal negotiations can turn contentious. A simple clause fixing the increase (commonly 5–10% annually) avoids this entirely.

3. Skipping registration to save time or money

Where registration is legally required, an unregistered agreement can be inadmissible as evidence of its specific terms if a dispute reaches court. The short-term savings rarely justify the long-term legal exposure.

4. Not verifying ownership

Tenants should always ask to see the title deed, a recent property tax receipt, or a society share certificate to confirm the person renting out the property genuinely owns it or has documented authority to lease it on the owner's behalf.

5. No inventory of fixtures and fittings

In furnished or semi-furnished rentals, failing to list existing appliances, furniture, and their condition at move-in is a frequent cause of "damage" disputes at move-out. A simple dated photo record, referenced in the agreement, solves this.

6. Unclear notice period

Both parties should agree upfront on how much notice is required to end the tenancy early, and whether there's a lock-in period during which early termination isn't allowed, or comes with a penalty.

7. Ambiguous use-of-premises clause

Not specifying "residential use only" (where applicable) can create complications later — both legally and around stamp duty — if the property ends up being used for commercial purposes.

8. Relying on verbal side agreements

Any additional understanding — who pays society maintenance, whether parking is included, pet policies — should be written into the agreement itself. Verbal promises are very hard to enforce if the relationship turns sour.