Sampat Bhansali, 41, is based in Bengaluru, where he owns a small apartment that he has rented out. He lives in a larger apartment with his family on the outskirts of the city, closer to his workplace.
Bhansali prefers an 11-month rental agreement as it doesn’t need to be registered. “It helps to save registration costs, as well as the hassles of making an agreement. If you make a two-year agreement and the tenant decides to leave in ten months or earlier, you again need to go through the process of registering a new agreement, getting witnesses, finding an intermediary for the registration, etc.," he says. “However, I ensure I rent the apartment only to a family."
Both tenants and landlords weigh several factors when deciding on the length of a rental agreement. While some prefer an 11-month pact, as agreements under 12 months don’t need to be registered unless specific state laws require otherwise, others choose to register agreements regardless of the tenure. Some also prefer agreements with longer tenure, as it gives predictability to both the tenant and the landlord.
However, having no registered agreement with proper terms and conditions can backfire at times. Take the case of Keerthi Sanagasetti. When she vacated her flat in Chennai, her landlord refused to pay back her deposit and instead raised several charges related to general wear and tear.
“We had to finally take the matter to the local police station. The cops finally told the landlord that he cannot charge us on these grounds and needs to pay back our deposit," the 31-year-old recalls.
She says she would have preferred to get the rental agreement registered, but up until 2019, registration of rental agreement was not compulsory in Tamil Nadu for 11 months
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