Extending a rental agreement in India involves updating specific terms and conditions of the original agreement to reflect the extended tenancy period. Rather than drafting a completely new contract, a renewal agreement or extension agreement is created, which incorporates the revised details.
KEY AMENDMENTS TO INCLUDE IN THE RENEWAL AGREEMENT
Here’s a checklist of changes typically made when renewing a rental agreement:
- Title: Clearly mention “Renewal of Rental Agreement” or “Extension of Rental Agreement” in the title.
- Date of Execution: Update the agreement's execution date to the current date.
- Age of Parties: Update the age of the owner and tenant (if age was mentioned in the original agreement).
- Rental Term: Set the new commencement and end dates. Generally, the renewal starts immediately after the previous agreement ends.
- Revised Rent: Rent is usually increased by approximately 5% (subject to mutual agreement).
- Security Deposit: Typically remains unchanged unless agreed otherwise.
- Maintenance Charges: Update if the apartment society has revised the monthly maintenance fee.
- Utility Charges: Amend water, electricity, gas, or parking charges if there are any changes.
- Lock-in Period: Consider removing it if it was part of the initial agreement, unless both parties agree to retain it.
- Notice Period: This can remain unchanged or be revised based on mutual agreement between the owner and tenant. Typically, the notice period for residential rental agreements ranges between 1 to 3 months.
- Fixtures, Fittings, Furniture: Update the list if any changes have occurred since the original agreement.
Refer to the image below for a mock renewal agreement for your reference
HOW TO EXECUTE A RENTAL RENEWAL AGREEMENT
The procedure for executing a renewal agreement is similar to executing a new rental agreement:
- Draft the Agreement
Prepare the draft in a Word document with the revised terms. - Purchase Stamp Paper
Buy non-judicial e-stamp paper equivalent to 0.5% of the rent. This can be purchased from cooperative banks, nearby courts, sub-registrar offices, or authorized online portals (availability varies by state). - Print the Agreement
Print the drafted agreement on the purchased stamp paper. - Sign in Presence of Notary
Owner, tenant, and witnesses must sign the agreement in the presence of a notary public. - Notarization
The notary public attests and signs the agreement, completing the legal execution.
NEED ASSISTANCE WITH RENTAL AGREEMENT RENEWAL IN KARNATAKA?
We offer end-to-end rental agreement renewal services in Karnataka, including:
- Drafting the renewal agreement
- Procuring the required stamp paper
- Executing and notarizing the agreement
- Home delivery within 2 working days (same-day express delivery available)
Email: pgnproperties@gmail.com
WhatsApp: +91-97424-79020