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Rent agreement in Hyderabad

Hyderabad, known for its amazing savoury. Yes, most of us know it because of the Hyderabadi Biryani, but there are a lot of savouries to relish in. From shormas to biryanis, to sweet dishes. However, we of course are not here to speak about the city and its food, which we all are quite aware of. Hyderabad has also been providing a lot of job opportunities to a lot of career growth opportunities to people. All these lead to the migration of people to the city of Hyderabad.
There are a lot of houses in the residential areas where you can also buy out instead of renting one. But the question comes investing in a property where you are not sure of the fact that how long is your stay going to be and secondly investing in property is a huge responsibility overall.
So, before we jump and deviate from the topic, below are the needful details that one needs to know while renting a house in Hyderabad:

Basic Procedure that needs to be known while Making Rent Agreement in Hyderabad

  • You need to be aware of the clauses that your landlord/tenant are adding in the agreement. Then draft a rough rental agreement, this will make it easy for the final draft to be a perfect one
  • Now you need to get the final cross-checked draft on stamp paper with the recommended value
  • Get signatures of both landlords being the primary person and the tenant at designated places on the agreement and this is to be followed by signatures of two witnesses, this is mandatory
  • You need to get a deed registered at a Sub-Registrar office of the city

Steps and Basic ideas for Preparing the Rental Agreement in Hyderabad

Now when it comes to the preparation of the agreement. What is the first thing that comes to your mind? Well, before you bring up the paper works and technical terms, let us start from the beginning.
The first step is putting forth the important clauses that need to be added on the paper. Both landlord and tenant can negotiate the clauses and decide what goes into the contract. Once the clauses are finalized, a deed is drafted and reviewed by both parties. One of the most important things to keep in mind is that some vital clauses need to be mentioned in the rental agreement like monthly rent, security deposit that has been paid by the tenant, the lock-in period (an important thing for the tenant to be aware of), maintenance charges and several others which just should not be omitted.
The next step in the preparation of the rental agreement involves purchasing the stamp paper that is of the recommended value and printing the prepared final draft on it. Both the parties that are the tenant and landlord must then place their signatures at designated places in the contract and it should be done in the presence of two witnesses, who also sign the deed. This is a mandatory step. The contract, after all these steps are taken care of, is then registered at the Sub-Registrar office of the said city, here, Hyderabad.

What are the Stamp Duty requirements Rent Agreement in Hyderabad?

To understand the stamp duty requirements, you need to know the basics too. So, the tax levied on legal documents in return for making them legally valid is called Stamp Duty. In Hyderabad and Andhra Pradesh, Govt. recommended Stamp Duty is as follows:

  • For a period between 0 to 10 years the stamp duty is 0.4% of the total rent payable in the lease
  • For a time between 10 to 20 years the stamp duty is 0.6% of the total rent payable in the lease
  • For a time of 20 to 30 years the stamp duty is 0.8% of the rent payable in the lease
  • And for the time of 30+ years the stamp duty charges are 5% of the total rent payable in the lease

Things you need to be aware of while registering a Rental Agreement in Hyderabad

What does a registration of Rental Agreement in Hyderabad mean? Now, registering a document means backing up the contract’s content with an authorized official or office. This is a fraud deterrent method, and this ensures that the contract was indeed signed by the parties involved in the contract. The reasons why registering a document is vital are as follows:

  • Firstly, it prevents any kind of forgeries and fraudulent actions
  • It acts as proof that the document was signed by the parties mentioned in it and not by random people
  • Any matters related to the property become revealed and thereby exposing feuds and cases on the property
  • Registration charges for the rental agreements in terms of percentage in Hyderabad and Andhra Pradesh are at about 5%.
  • While when appearing for registration of the Rent Agreement in Hyderabad, both the parties that are the tenant and landlord may have to produce documents that prove their identity. With identity, it means a title of ownership (landlord), passport size photos, etc.

All you need to know about the types of Rental Agreement in Hyderabad which are most Used

An 11-month rental agreement – One of the most used types of rental agreements throughout the country is the 11-month Rental Agreement in Hyderabad. The term of such a contract is, of course, eleven months post which both parties can mutually agree to renew or terminate the contract. This decision is about the party's mutual understanding. Registration is not mandatory for such agreements and these are usually overlooked.
Commercial Lease – These are usually signed exclusively for business deals, commercial leases that involve longer durations, and large amounts of money. The registration and notarization are seldom overlooked; however, you must be prepared with the papers to avoid any bad experience.
Long term lease – This one is signed for both residential and commercial purposes long term leases involve durations that last in years. In most cases, a lump sum or a moderate amount is paid upfront, and this sum is later returned to the tenant at the end of the term.

     Sample Rent Agreement PDF

     Sample Rent Agreement Draft