One of the most common questions that people have in mind is that “Why were Rental agreements created specifically for 11 months?”. Trust me, even I wondered the same. And only after deep research, I was finally able to find out the real reason behind the specific period of 11 months for the rental agreement.

So, without further delay let’s get into the topic.

What is a Rental agreement?

Rent agreements, also known as lease agreements, are legal contracts between a landlord and a tenant that outline the terms and conditions of a rental property.

Now let us look into the laws and regulations in India that controls this Rental agreement.

Indian rent control Act:

The Indian rent control act is a set of laws and regulations put forth by both central and state governments to safeguard the rights of both owner and tents of the property. These laws and regulations ensure the credibility of the rental agreement preventing both the owner and the tents from exploiting each other.

Benefits for Tenants:

So as per the registration act of 1908 under section 17 (d), if the rental agreement is below the period of 12 months then the tents can avoid the tedious procedure of going to the registrar or sub-registrar office to register their rental agreement. Hence the rental agreement of fewer than 12 months helps the tenants to save time and heavy stamp duty money while moving into a new rental property.

Benefits for Owners:

The major advantage that the owner of the property gets from the “11 months rental agreement” is that as per the Indian rent control act the landlords are allowed to increase rent or evict tenants after 11 months without the need for lengthy court procedures.

This gives the flexibility to the owners or the landlords of the property to make changes to the rental rates as per inflation or demand. Thereby, helping the landlords to cover their rising expenses or their need to make improvements to the property without any worries.

In conclusion, the rental agreement for the period of 11 months helps preserve the rights of both the landlords and the tenants, as well as making the rental deal easier and faster. Hence, this is the important reason why rental agreements are created only for 11 months in most places.