Rent agreements and security deposits: what tenants should check

Renting · 5 min read · Reviewed January 2026

Most Indian rent agreements are written for 11 months because leases of a year or more attract compulsory registration in many states. Deposits vary sharply by city — commonly one to three months' rent in the north and west, and often higher in Bengaluru. Get the agreement in writing, list the deposit and notice period explicitly, and record the property's condition at handover.

Why 11 months

Leases of twelve months or more generally require registration under state law, with higher stamp duty. An 11-month term keeps the instrument in the leave-and-licence category, which is cheaper and faster to execute — and is renewable.

Clauses that matter

Read past the rent figure. The clauses that cause disputes are:

  • Deposit amount, and the exact timeline and deductions for its return
  • Notice period on both sides, and lock-in period if any
  • Annual escalation percentage
  • Who pays maintenance, society charges, property tax and major repairs
  • Permission for guests, pets, and work-from-home use

Protecting your deposit

Photograph every room, fixture and appliance at handover and attach the inventory to the agreement. Pay rent and deposit through bank transfer so there is a record, and take a written acknowledgement of the deposit amount.

At exit, do a joint inspection and get the deduction list in writing before you hand over keys.

Registration and stamp duty

Stamp duty on leave-and-licence agreements is set by each state, often as a small percentage of total rent plus deposit. Registration requirements and e-stamping facilities vary; check your state's registration department portal.

Frequently asked questions

Is an unregistered rent agreement valid?
A written leave-and-licence agreement on stamp paper is commonly used and enforceable between the parties, but registration gives stronger evidentiary value and is compulsory for longer leases in many states.
Can a landlord raise rent mid-term?
Not unless the agreement provides for it. Escalation normally applies at renewal or on a stated anniversary as written into the contract.
How much notice must a tenant give?
Whatever the agreement says — one or two months is typical. There is no single national default, so confirm it in writing before signing.

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