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What Are Online Rental Agreement Format, Types, & Significance

Pragya Pathak

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Updated: 06-02-2026 at 3:30 PM

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A rental agreement is an official legal document that has all the initial terms and conditions under which a landlord agrees to lease their property to the tenant. The primary reason behind drafting this type of agreement is the resolution of disputes, as it helps in avoiding any and all forms of misunderstandings, which can lead to conflicts.

Rental agreements are governed by a law called the Indian Contract Act of 1872, and it functions alongside other state rent control acts.

Read the article to learn more about the rent agreement, ranging from its meaning and house rental agreement format to types and importance of the same, including information on 11 months rental agreement format.

Overview

The table below summarises some key details about a rental agreement that one should know.

Name of the agreement	Rental agreement
Purpose	A formal legal document between a landlord and a tenant.
Involved parties	Landlord and tenant.
Duration	Based on the type of rental agreement signed.
Components in the agreement	Monthly rent amount, security deposit, tenure, notice period, termination clause.
Type of copies	Physical copies or online rent agreement, both are acceptable.
Rental agreement validity in India	Varies based on the kind of agreement drafted and signed.

What Is A Rental Agreement?

A Rental Agreement is an official legal document between a landlord and a tenant. As it is an agreement, it clearly defines all the terms and conditions that need to be satisfied by both the tenant and the landlord. Rent agreements comprise all the significant details, such as the amount of the rent, security deposit, duration of the lease, responsibilities of maintaining the property, notice period, and other relevant terms.

The main reason behind the creation of such agreements is to reduce the instances of conflicts or have valid evidence to resolve all the disputes if they occur.

Rental Agreement Format In India

Rental agreements, whether physical copies or rental agreement online copies, should be in a prescribed format. It is necessary to follow the rental agreement format for it to remain valid and legal. The usual format or components in a rent agreement are mentioned below in brief points for one’s clarity:

Relevant parties involved in the dealings of the house: Full names and accurate contact details of all the involved parties should be mentioned in the agreement.
Details of the property: All the major and minor details of the property, like address, type of the property (house, apartment, commercial space), and other features, should be in the agreement.
Duration of the lease: The duration of the lease, the date when it was signed, and the end date should compulsorily be included in the agreement.
Amount of rent: Along with the monthly rent amount, the due date when the rent should be paid, and acceptable payment methods should be mentioned in the agreement.
Security deposit: The sum of money that the tenants are required to pay to their respective landlords as an advanced compensation against damages should be clearly mentioned in the rent agreement as well. Security deposits are refundable if there are no damages or dues.
Utilities and services: Essential utilities, like water, electricity, gas, or internet, and services, such as maintenance, are to be included in the agreement.
Maintenance of the property: It is both the tenants' and the landlords’ responsibility to maintain the condition of the property.
Rules and regulations: All the rules and regulations that the tenant is required to abide by, such as allowed noise limits, rules related to keeping pets or hosting guests, and others, are also mentioned in the agreement.
Renewal and Termination: Conditions following which a rent agreement can be renewed or terminated are to be clearly stated in the agreement.
Other clauses: Other clauses, such as property inspection or insurance, can also be added to the agreement. And at last, the agreement should be signed and dated by both the tenant and the landlord.

Also Read: Protect Your House With Bharat Griha Raksha Policy!

Types Of House Rent Agreement

A rental agreement can be made for various purposes and with different requirements, and therefore, it has several types. Some of the most common and popular types of a rent agreement are described below in brief points for one’s reference.

1. 11- Month Rental Agreement

The 11- month rental agreement is strictly for residential purposes, like houses, apartments, or flats. Usually, this type of rental agreement is for a fixed tenure of around 11 months to avoid regulatory requirements under the Indian Stamp Act. It is not mandated to register such agreements. 11 months rental agreement format is very popular as it is easy to draft, sign, and even terminate as the terms are flexible and there are no legal complexities involved.

2. Long-Term Rent Agreement

A long-term agreement, as the name suggests, is for a longer duration, like for a span of 3 to 5 years. These types of rent agreements must be for more than a year and are registered formally under the Registration Act of 1908. Long-term rental agreements give a lot many rights to tenants compared to what a normal rental agreement gives to tenants.

3. Commercial Rent Agreement

A Commercial Rental Agreement is a type of agreement that is specifically for business and commercial purposes, like offices, shops, or industrial units. These types of agreements are generally for a longer tenure of 3 to 5 years. The agreements are extremely detailed, covering as many conditions through clauses as possible, like tax, security deposits, etc.

4. Rent-To-Own Rent Agreement

A rent-to-own agreement allows a tenant to purchase the property at the end of their rental duration. The agreement comprises several important bits of information, such as the rental period, the price of purchasing the property, and part of the rent that can be contributed to purchase the property at the end.

5. Paying Guest (PG) Rent Agreement

Paying Guest (PG) rental agreements are drafted when, along with accommodation, the landlord is responsible for providing shared facilities, like food, laundry, and other facilities, like furnished places. These types of agreements are very popular in metropolitan cities, like Mumbai, Bangalore, or Chennai, with rigid terms and conditions regarding several things, such as entry or exit timings.

6. Leave & License Rent Agreement

Leave and License rental agreements allow the tenants to use the property for a specific duration, which is generally up to 3 years. The terms in the contract are much more flexible than other rental agreements, which makes it ideal for those individuals who are looking for places to live for a short period. It is also beneficial for landlords as the termination can be done swiftly without much legal trouble.

Difference Between A Rental Agreement Vs A Commercial Rental Agreement

The difference between a rental agreement for house and a rental agreement for commercial purposes is laid down below in tabular format:

Component	House Rental Agreement	Commercial Rental Agreement
Meaning	It is specifically for residential purposes by individuals or families	As the name suggests, this is strictly for commercial purposes, like business, offices, retail shops, etc.
Duration	Generally, for 11 months, comparatively for shorter durations	These are long-term, usually remain valid for 3 to 5 years
Legal complexities	At times, no registration is required, and hence, no legal complexities	Required registration, adherence to legal laws, and therefore, comparatively much more legally complicated
Raise in rent	Governed by mutual agreements or local rent control laws	Affected by market conditions and much more organised than the raising of rents of residential properties
Responsibility of maintenance	The landlord is responsible	Responsibility of tenants
Termination and renewal	Easy termination with compliance with the terms of the notice period	Comparatively stricter, terms can be rigid and inflexible

Conclusion

Rental agreements are one of the most important types of contracts signed between a landlord and a tenant. As it is an official legal document, it not only lays out all the necessary terms and conditions which are to be fulfilled by all the parties involved but also helps in resolving conflicts and disputes.

It is always better to have a valid legal rental agreement to avoid any types of disputes. Along with tangible benefits, it also provides a sense of psychological safety to both the tenant and the landlord.

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