Rent agreement 11 months Rule: You must have noticed that most people get a rent agreement of only 11 months to rent their property. What is the logic behind this? Who is more beneficial for this, the tenant or the landlord?
Why rent agreement for only 11 months: Living in a rented house or renting a shop has become a common practice nowadays. Whenever people migrate to another place in search of better opportunities, they usually live in a rented house. For the house in which they live, it is necessary for them to make a legal agreement of rent with the landlord for a fixed period. This is also called a rent agreement. Most people get an agreement of only 11 months in this. In such a situation, the question arises that when there are 12 months in a year, then why is the agreement made for 11 months. This question must often come to your mind too. Today we are going to give you complete information on this issue.
What is a rent agreement?
Actually, the rent agreement is a written agreement between the landlord and the tenant. In which it is clearly written that for how much rent and time the said property is being given to the tenant. Along with this, things like maintenance of the property, electricity bill, water bill, security are also clearly written in the agreement. It is necessary for both the parties to honestly follow the terms written in the agreement.
Why are rent agreements made for 11 months?
According to property experts, the main reason for making a rent agreement for 11 months is to avoid stamp duty. Actually, according to section 17 of the Registration Act 1908, it is mandatory to get the property registered for renting for a period of more than a year. In this, both the parties have to pay stamp duty, which can range from hundreds of rupees to thousands of rupees according to the price of the property. In such a situation, by making an 11-month rent agreement, they avoid getting it registered or paying stamp duty. This is the reason why most people get a rent agreement for 11 months only.
It saves you from legal hassles!
According to lawyers, one of the major reasons for getting a rent agreement for 11 months is to avoid legal hassles. Actually, the longer the lease period, the more it favors the tenant. In such a situation, the landlord can neither increase the rent in the middle nor can he ask the tenant to vacate the house. This is the reason why people prefer to get a short-term lease to avoid any kind of trouble.
Freedom to end it in the middle
One reason for getting a rent agreement for 11 months is that it is convenient for both the landlord and the tenant. The landlord has the right to increase the rent by 10 percent every year by adding a clause in the agreement. At the same time, the tenant has the advantage that if he does not like the house or the rent, he can change the house after 11 months. This is why both parties like this agreement.
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