What is Rent Agreement?

A rent agreement is an arrangement between a landlord and a tenant that sets down the terms that the tenant must follow for the duration of the rented property. In general, while the parties, i.e. the owner/landlord and tenant, fix the tenure of the agreement to the contract, the rent is usually payable every month. While an agreement may be oral or in writing, it must be in writing when any fee or refundable deposit is being paid. 

Why Is Rent Agreement Necessary? 

When made into a written contract, a rent agreement becomes legally binding on both parties. When an agreement is made in writing, the terms and conditions agreed upon by the parties become clearer and serve as evidence of any default by the two.            

Besides the requirement that a rent agreement includes main terms and conditions, it should also include any additional points. Additionally, the owner and the tenant must have agreed to all the terms and conditions of the contract. 

Rent Agreement Format

Before filing any rent agreement, you must understand the format of rent agreement. The detailed format of rent agreement is shown below.

Important Details In Rental Agreement 

Though there are general points that need to be covered, the key points for each contract vary depending upon the type of agreement. The more detailed a contract is, the lesser scope of confusion. Below are the points that should be considered while making a online rent agreement. 

Details of the Owner

For the first, the agreement should start with the details of the first party, which is the owner or landlord. These details include the name, age, residence status, and address. 

Details of the Tenant

The tenant’s details should include their name, age, residential status, and permanent address. 

Description of the Property

The owner or landlord must specify a detailed description of the property. The area in terms of square feet and the dimensions and any other details as necessary to be mentioned should be written in the agreement. It should also be stated that the owner is legally the valid owner of the property. 


The consideration includes the amount for which both the owner and the landlord have agreed for the rental of the property. It should include the sum paid and the details of the balance pending amount. It should also describe the mode of payment and how further payments should be made. 

Receipt of Consideration 

The owner should acknowledge the receipt of payment they received from the tenant and confirm it as a part of the consideration. 

Representation and Warranty from the Owner 

The owner should confirm that they are a competent person for a contract and are the absolute owner of the property. The owner should confirm that the property is free from any encumbrance, lien or charge and any litigations and all dues on the property were clear. The owner should state the date of when the possession of the property will be handed over to the tenant and state that the tenant should not cause any damage to the property and if such a thing happens, the latter should repair it at their own cost.   

Representation and Warranty by the Tenant 

The tenant should confirm that they are competent to contract and have the documentation required to make the contract. They should confirm that they would make the payment of consideration on time and any government dues required to make under this contract. They should also state the purpose for which they will be using this property. 


In any situation where the owner pays for the expense that the tenant is supposed to pay or that the tenant pays the expense that the owner is supposed to pay, they pay the sum the other has paid for them. 

Breach of Contract

In the case where either the owner or tenant fails to perform their duties under this contract, it amounts to a breach of contract. This means any actions that break the terms and conditions laid down in this contract, and the offended party could take legal action and claim damages if any. 

 Force Majeure Clause 

It is advisable to add this clause to your agreement. This clause states that when either of the parties to the contract fails to fulfil their duties due to any reason out of their control, including the acts of God, then it cannot be considered a breach of contract and the person should not be subject to penalty.     

 Dispute Resolution 

If a dispute arises between the owner and tenant, both parties should resolve it through arbitration or any way as decided upon by both.  

 Attestation and Signatures

Two witnesses should attest to the written agreement, which both the owner and the tenant must sign.  

Since a rental agreement is an important document, it is advisable to make it as detailed as possible and to see to it that the terms and conditions of the agreement are under mutual consent of all the parties concerned. 

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