Rent Agreement: Why is it important to make rent agreement for 11 months only? Reason and legal ramifications

On renting a house in the country, you must have made a rent agreement. You must have noticed one thing that you take the house on rent for a long time, yet the landlord gives you only 11 months by making a rent agreement. In such a situation, the question arises that even when you take a house on rent for a long period i.e. two or three years, why does the rent agreement not get longer?

The reason for this is legal ramifications. Under Section 17 (d) of the Indian Registration Act 1908, there is no requirement for registration of rent agreements and lease agreements of less than one year duration in the country. Due to this the landlord does not have to pay the registration fee. 

 Problem in rent agreement for more than 11 months

Law experts say that most of the tenancy laws in India make the tenant's side stronger. In such a situation, whenever there is a dispute between any landlord and tenant, due to the legal battle going on for years, the tenant remains in the property and this causes loss to the landlord. To avoid all these hassles, landlords get 11 months rent agreement made. 

Reason for increasing rent

Whenever the tenant goes to the landlord to renew the 11-month rent agreement, the landlord is also given an opportunity to increase the rent on this pretext. At the same time, according to the Rent Tenancy Act, if the rent agreement is made for more than 11 months and in case of dispute, the matter goes to the court, then the court can also stop the increase in rent. 

11 months rent agreement is cheaper

The rent agreement for 11 months is considered in favor of the landlord. Due to non-registration, its draft can be prepared on stamp paper of 100 or 200 rupees only.