Bangalore known as Bengaluru, is the capital of the Indian state of Karnataka. This is a fast-developing city in many sectors, especially the IT sector. There are amazing employment opportunities created in Bangalore at a fast pace. This is one of the amazing reasons why people all over the world had attracted more to Bangalore. So, the need for rental homes has increased. All you must know is the proper procedure for renting in this city and How to Create a Rent Agreement in Bangalore but before knowing the process let’s first discuss What is Rent Agreement?
What is the Rent Agreement?
A rent agreement is an agreement in which two parties Owner and Tenant mutually agree on the rental of property under the given rules and regulations prescribed by the Government of India. It plays a vital role for both the Tenant and the Owner of the Property.
- The tenant gets the Legal Assurance for the Rented Property after Drafting the Rental Agreement.
- The owner also gets the benefit of the Rental Agreement as it secures his/her property from any kind of illegal activity.
Type of Rent Agreement
- Lease Agreement ( least of 12 months)
- Rent Agreement ( most of 11 months)
The lease agreements had governed by the rent regulations put up by the State Governments and rents determined by the State governments. The rent is determine by paying attention to the factors like market price of the property, cost of construction incurred, and construction time. So here is a simple logic the older the property lesser would be the rent and vice versa.
When a lease agreement sign for 12 months, the tenant gets the ownership of the property for an indefinite period of time. This condition has propelled the number of problems like tenants refusing to leave the flat etc. Court cases can take up to ten to twenty years to resolve. For this reason, most landlords prefer rent agreements. They only guarantee tenants the right to live in the rental object for eleven months. Periodic renewal is possible.
Rental Agreement Procedure in Bangalore | Karnataka
- Draft the Rental agreement while including Terms and Conditions. Then, execute it on the relevant value of e-Stamp Paper. In Karnataka, the least Stamp Duty for Rental Agreement is Rs. 20/- and preferable Rs. 100/-.
- Once the Drafting gets Complete. Place the Signature of both Owner and Tenant. It’s very Important to Sign all the Pages of the Agreement along with e-Stamp Paper.
- Mention the details of two witnesses along with their Signatures and their I.d Proof Document Number. One Witness should be from the Owner’s Side and one from Tenant. Also, Witnesses cannot be family members. It can be your Friends, Neighbors, or colleagues.
- After that Get your Agreement attested by Notary Public or get the document registered at the Sub-Registrar office after paying due registration charges as per State Government.
This is the tax levied on the Legal Documents for making them legally valid. In Bangalore, the most stamp duty levied on rent agreements in Bangalore | Karnataka is INR 500/-. the calculation are as follows:
- Up to 10 years- deposit + 1% of annual rent
- Above 10 years- deposit+ 2% of annual rent
Make Rent Agreement Online
Long queues in Courts, Time Consuming, Costly, and Not Legally drafted. Lack of Clauses. People must face all these issues while getting the Rent Agreement in Bangalore. To cut these conditions we have set up this Online Portal in which People can have their fully Legally drafted Rent Agreement by just sitting at their home/office.
Process To Create your Rent Agreement –
- Select your State and Choose the Purpose of the Rent Agreement.
- Provide the Details of the Owner, Tenant, and Property that rent out.
- Provide the Modifications in Clauses (if needed).
- Review the Details and If satisfied Click on Add to Cart and Place Order.
That’s it! Now Legal Experts will draft your Agreement and send it to your Registered E-mail Address, Once Approved we will deliver your Rent Agreement executed on e-Stamp Paper on the Very Next Day.
Also Know, Important Terms which Need to be Consider While Drafting Rent Agreement in Bangalore :
There are a few important terms that needs to consider mutually while drafting the Rent Agreement in Bangalore-
- Allowance of Pets – Make a clause whether the pets will allow on Rented Property or not.
- Lock-in Period – The locking period prescribes the time period within which any of the parties can not terminate the contract before the sending of the lock-in period, if the party do so then he has to pay the rent for the remaining lock-in period. So, it is always recommended to modify this term accordingly and wisely.
- Names of all Tenants – The Name of all the adult tenants must included while drafting the Rental Agreement along with their signature on the Agreement. This act will make each tenant strictly follow the terms and conditions set for the rented property.
- Limit on Occupancy – There should be a limit set on occupancy that the residence will be used only by the tenants who are involved in the agreement and by their children. This will provide the surety to the owner about the usage of their property and will prevent the unwanted occupants from his property.
- Duration Of Tenancy – It should be clearly stated in the Agreement what will be the duration of the Tenancy.
- Repairs and Maintenance – It is always recommended to clearly set what will be the Tenant’s role for the repairs and maintenance and what will be the Landlord’s role also there should be a term of allowance for the owner anytime for Maintenance or for any major repair within the rented property.
- Water and Electricity Consumption Bill – It should be clearly stated in the Agreement that the water and electricity bill should be paid by the tenant and if ask tenant needs to provide the receipt for the same.
- Rent and Other Security Deposit – The Last but most important term for the Agreement is clearly stating the amount of Rent needed to pay every month and also the penalty if the tenant fails to deposit the Rent on Time and also about the mode of accepting the rent/payment.
Frequently Asked Questions on Rent Agreement in Bangalore
You can use the Article – Lease of Immovable Property OR you can Mention Article – Bond if your Rental Agreement is for 11 months and under description you need to mention – “Rental Agreement”.
You can refer our section to Check the Basic format of Rental Agreement – https://www.edrafter.in/form-rental-agreement/
The minimum Stamp Paper value for Rental Agreement in Bangalore|Karnataka is Rs. 20/- though the commonly used Stamp Paper value is Rs. 100/- for Rental Agreement. Also, after introducing e-stamp paper in Karnataka no fixed denomination has been left by Government. As per Government Articles List, The duty chargeable varies depending upon the amount of rent, lease period and lease granted for amount advanced etc.