When Ananya, Meher, Tanya, and Isha moved to Pune for work, they were strangers bound by one mission—find a place to stay that didn’t burn their pockets or sanity. They had jobs starting in a week, minimal furniture, and zero clue about rental paperwork. But after visiting a dozen flats, and sitting across a polite but sharp-eyed landlord named Mr. Naik, they finally found “the one.” As excited as they were to move in, the rent agreement made them pause. Luckily, Meher’s cousin was a lawyer, and what followed was a crash course in tenants’ rights, rental clauses, and grown-up negotiations. Here’s how they dissected the 10 most important clauses in a rent agreement—and why you should too:
1. Security Deposit
Mr. Naik initially demanded a 3-month rent deposit. That’s ₹1.2 lakh upfront. The girls negotiated it down to 2 months. But what if the deposit isn’t returned?
- They added a clause: if the landlord fails to return the deposit within 30 days of moving out, the tenants have the right to continue staying rent-free until the balance is cleared. This keeps landlords accountable.
- From Owner’s View: He wanted cover for property damage or unpaid utility bills. Fair. But he agreed to the clause once they offered to document the flat’s condition on move-in, click photos, and include a list of items provided.
2. Monthly Rent & Payment Date
Rent was fixed at ₹40,000. The clause stated payment was to be made before the 5th of each month via UPI or bank transfer.
- Tenant’s Perspective: Clarity helps. No “I forgot” text would fly. They also added that any delays beyond 7 days would attract a ₹500 fine—not an arbitrary “as per landlord’s mood” penalty.
- Owner’s Perspective: For Mr. Naik, this ensured he didn’t have to follow up each month or deal with vague commitments. He appreciated the structure.
3. Rent Hike Policy
The original draft had a fixed 10% annual hike. The girls argued that rent should align with market trends, not automatic inflation.
- They rewrote it: any increment would be negotiated at lease renewal, with a 30-day notice period, and based on nearby average rental prices.
- Landlord’s Benefit: He retained the right to raise rent if area rates increased. But the girls were protected from unexpected hikes.
4. Lease Duration & Exit Clause
The lease was for 11 months with a 2-month notice period. They also clarified: no lock-in, which meant they could leave early with proper notice and weren’t forced to pay for the full term.
- Tenant Advantage: They had flexibility. If jobs changed or things didn’t work out, they could exit without penalty.
- Owner Safeguard: To balance things, Mr. Naik added that he too would provide 2 months’ notice if he wanted them to vacate, and couldn’t randomly throw them out.
5. Breach of Agreement
The agreement had rules: no drilling walls, no smoking indoors, and no renting out rooms on Airbnb. It also said violation meant eviction. The girls asked for moderation. They rewrote the clause: upon breach, landlord must issue a written warning, and only if repeated, can legal eviction proceedings be considered.
- Fair to Tenants: They wouldn’t get kicked out for a single party or misunderstanding.
- Fair to Owner: He still had authority if they genuinely caused damage or broke rules repeatedly.
6. Inventory and Property Description
Every item—fridge, fan, gas connection, geyser were listed in the agreement with its current working condition. They added photos and emailed the list to Mr. Naik.
- Why Tenants Insisted: This avoids post-exit drama. If something was already old or semi-functional, they wouldn’t be blamed.
- Why Owners Should Agree: This protects their belongings. If something is new or expensive, it gets documented. Any intentional damage can be proven.
7. Maintenance & Charges
The girls would pay for electricity, water, internet, DTH, and minor repairs (like bulbs, taps). Mr. Naik would handle property tax, painting, and major structural maintenance.
- For Tenants: They knew exactly what to budget for each month and wouldn’t be asked for surprise painting fees at the end.
- For Owners: His responsibilities were limited to long-term upkeep, and he didn’t have to chase tenants for small repair bills.
8. Deposit Return Timeline
This one was non-negotiable. They added: within 30 days of vacating, the deposit must be returned after deducting mutually agreed charges with valid bills. No vague “damage” fees.
- Tenant Benefit: This ensures they aren’t left hanging or forced to beg for their own money back.
- Owner Angle: It gave Mr. Naik time to inspect, calculate actual expenses, and communicate them clearly.
9. Owner Identification & Property Verification
Before signing, Isha ran a quick RERA check on the flat using the property ID. She also asked for Mr. Naik’s PAN and Aadhaar copies and added them to the agreement.
- Why It Matters for Tenants: In cases where someone fraudulently rents out a property (it happens!), tenants can be forced to vacate even after paying. This step protects you legally.
- For Owners: This shows transparency. Mr. Naik appreciated the professionalism and willingly shared his credentials.
10. Registration of Agreement
Instead of a plain paper document, they went ahead and got the agreement registered at the local registrar office. It added a small cost but gave them legal strength.
- Tenant’s Peace of Mind: Registered agreements hold up in court. Any unfair eviction, deposit dispute, or illegal rent hike can be challenged.
- Landlord’s Assurance: He now had legal documentation that could help him in case of property misuse or tenant default.
Final Thought
A year later, the four girls renewed the lease with just one call. Mr. Naik even waived off one month’s rent during Meher’s medical emergency. The mutual respect, clarity, and trust came not just from kindness—but from a well-written, balanced rent agreement. When Isha was leaving for a job in Delhi, she said, “I came here with a suitcase and a dream. What I didn’t realize is that understanding clauses would be as important as chasing goals.” And she wasn’t wrong.
Written by Roshni Mohinani
