A well-drafted agreement protects your property and your rental income just as much as it protects your tenant — here's what's worth getting right from the start.
Several states allow, and some require, police verification of tenants, particularly for longer stays. Even where it isn't mandatory, verifying identity documents and, where possible, employment or professional details is good practice before handing over the keys.
Specify the rent amount, the due date each month, the accepted mode of payment, and the consequence of late payment. If you plan to increase rent at renewal, state the percentage upfront rather than renegotiating from scratch each year — it avoids friction and keeps good tenants from feeling blindsided.
Clearly list what can be deducted from the deposit — unpaid rent, damage beyond normal wear-and-tear, outstanding utility bills — and commit to a specific refund timeline. Clear terms here make disputes at move-out far easier to resolve, for both sides.
State explicitly whether the property may be used for residential purposes only, and note any restrictions on subletting, structural alterations, pets, or running a business from the premises. This protects your control over how your property is used during the tenancy.
Rental income is taxable in India under "Income from House Property." Keep signed rent receipts and your registered agreement as supporting documentation for your tax filings, and factor this into how you price your rent.
A registered agreement (or a properly registered Leave & License agreement in Maharashtra) strengthens your legal position significantly if you ever need to reclaim possession, recover unpaid rent, or resolve a dispute with a tenant who won't vacate.
Find a documentation provider in your city to handle the paperwork correctly.
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