Deposit – In Delhi, the usual trend is to collect 2-3 months` rent on deposit. This deposit is to be reimbursed by the owner to the tenant at the time of eviction of the premises by the tenant. No interest will be paid on the amount of the deposit. An unregant rental apartment is never evidence in court. This is only collateral evidence and cannot be used to prove one`s own claims. Therefore, registering the rental agreement is very important to be on the safe side. The registration procedure and stamp duty are the same as those of residential real estate for the rental of commercial real estate. Registering the rental agreement/rental item in Delhi has a specific procedure that must be followed by everyone. In order to save costs, tenants and landlords sometimes enter into a verbal agreement on the lease and avoid the execution of a lease.
Sometimes they also document the agreement and set the terms regarding the rental, but decide not to save the document. This is because both parties are responsible for paying the registration fee when a rental agreement is created and registered. The landlord is also required to declare his rental income as soon as the rental agreement is legally valid. However, entering into a lease without registration is illegal and could prove to be a risky venture for both parties, especially in the event of future litigation. Maintenance: The agreement must clearly specify who is to pay the monthly maintenance fee. Until a rental agreement is registered with the sub-registration office, it has no legal validity. It is up to both parties to draft and register an agreement with specific conditions. After concluding the rental agreement, the owner must print it on stamp paper. When a property is rented for 24 months at a monthly rent of Rs20,000 for the first 12 months and Rs22,000 per month for the following 12 months. The registration fee for this agreement would be: 2% of the average rent for 12 months: Rs5,040, (average monthly rent is rs 21,000, average annual rent is 21000 * 12 and 2% is Rs5,040). But if Ashok had initially made the deal by paying the correct stamp duty, he would only have Rs.
1860/have to pay – Therefore, it is still recommended to pay the appropriate stamp duty and be relaxed. It is often a practice among people to create leases on buffer paper with minimum values such as Rs.20/-or 50/-or 100/-, etc. This saves money on paying the actual stamp duty prescribed by the government. The difference between government fees and minimum fees is usually very small. As long as there is no legal dispute between the landlord and the tenant, things are fine. Now let`s look at an example: to promote rental housing in India, the government has formulated a draft policy, the Model Rental Bill, 2020, to make the transaction beneficial for both landlords and tenants. .