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House Rent Agreement – Purpose, Format & Registration Procedure

What Is a Rent Agreement?

What Is the Purpose of a Room or House Rent Agreement?

How to Prepare a Rent Agreement?

What Is the Format of a Home Rent Agreement?

What Are the Clauses to be Included in a Rent Agreement?

What Are the Necessary Documents for Rent Agreement Registration?

How Does a Rent Agreement Differ From a Lease Agreement?

A common confusion that most individuals face concerns the difference between a lease agreement and a rent agreement, given how often these terms are used interchangeably.

To put it simply, there is not much of a difference between the two except that in terms of their tenure. Generally, lease agreements concern a longer period compared to rental agreements and are mostly preferred by entrepreneurs looking for commercial spaces.

That being said, here is a table outlining all the key differences between these contract types.


Rent Agreement

Lease Agreement


A rental agreement allows a party to reside on a property for a specific period in lieu of a fixed periodic fee.

A lease agreement allows a party to purchase a property for a particular period, for which they can utilise the same.


These are short-term contracts, generally concerning a period of less than a year.

These are long-term agreements, generally concerning a year or more period.


The two parties involved in a rental contract are the landowner and the tenant.

The terms for the parties involved in a lease agreement are lessor and lessee.


Tenants need to pay rent to the landowner every month.

A lessee is liable to pay a one-time lease rental, which comprises a sum of the rent of the leased property for the stated duration.

Accounting standard

There is no particular accounting standard for such contracts.

The accounting standard for such contracts is AS - 19.


Landowners can change the clauses of a rent agreement at any time after providing tenants with prior notice.

Lease agreements come with fixed terms and conditions, and a lessor cannot modify the same.

Maintenance and repairs

The landowner is responsible for repairs and general maintenance of a property on rent unless otherwise specified.

The lessee must bear the expenses related to a leased property’s maintenance and repairs unless otherwise specified.


Rent agreements undergo automatic renewal unless a landowner decides to modify its clauses.

Lease agreements are not automatically renewed.

Options after expiry

Rental contracts can be renewed with similar or modified terms and conditions.

Lessors often offer lessees the option to purchase a leased property by paying its residual cost upon a lease agreement’s expiry.

Now that you have a basic idea of how a rental contract differs from one related to a lease, you can easily choose more suitable for your requirements. If you go for a house rent agreement, consider all the previously discussed pointers related to this contract type to avoid any mishap.

FAQs About House Rent Agreement