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Renting a home: agreements and deposits

What a fair rent agreement looks like and how deposits usually work. For tenants and owners. Updated 10 October 2026.

The short answer

1. Always sign a written agreement, and give both sides a signed copy. New laws in Jammu & Kashmir and Ladakh require one. ^1,7
2. Keep the deposit modest. Where the new laws apply, the deposit for a home is capped at two months' rent. Elsewhere there is no fixed limit, but two to three months is a fair ask. ^5,18
3. Write down how and when the deposit comes back, and what may be deducted.
4. Photograph the home on the day you move in, and attach a signed list of fittings and their condition to the agreement. ²⁰
5. Pay rent by bank transfer or UPI, not cash, so every payment has a record.
6. The owner must tell the police about the tenant in many districts. Do it in the first week. ^6,21

What a fair rent agreement includes

Deposits: how they usually work

• How much. Under the Model Tenancy Act, the central template many states copy, the deposit is at most two months' rent for a home and six months' for a shop or office. ¹⁸ J&K's new law is reported to use the same limits. ⁵ Where no law sets a limit, two to three months is usual in the North; ask why if someone wants more.
• Pay it traceably. Pay by bank transfer, cheque or UPI, and write the transaction reference in the agreement.
• When it comes back. Under the Model Tenancy Act, the deposit is refunded when the tenant hands back the home. ¹⁸ Write a date in the agreement, for example “within 15 days of handing back the keys”. In J&K, an owner who doesn't refund the deposit can be made to pay interest on it. ⁴
• What can be deducted. Unpaid rent, unpaid bills, and the cost of damage beyond normal wear and tear. Faded paint, small marks on walls and worn taps are normal wear and tear, not damage. Any deduction should come with a written, itemised list. ²⁰
• Not the last month's rent. Agree in writing if the deposit will be used for the last month's rent. Otherwise, pay rent as usual and get the full deposit back.

Why 11 months, and when to register

Under the Registration Act, 1908, a lease for more than one year, or from year to year, must be registered at the Sub-Registrar's office, which costs stamp duty and a fee. An 11-month agreement doesn't need to be registered, which is why it is so common. It still needs stamp duty: print it on e-stamp paper of the correct value for your state. ¹⁹

The new tenancy laws work differently. In Jammu & Kashmir, every new written tenancy must be reported to the Rent Authority within two months, however short it is (see below). ^1,3 In Punjab, the Punjab Rent Act says rent agreements are registered with the Rent Authority of the area. ¹⁰

Police verification of tenants

District Magistrates and police across the North regularly order owners to give tenants' details to the local police station. Owners who don't can face a police case. ^6,21

• Jammu: the District Magistrate has ordered owners to report tenants, domestic helpers and employees to the local police within seven days. Landlords have been booked for not doing so. ⁶
• Leh: the district administration has required landlords to give tenant information to the local police. ⁸
• Punjab: tenant verification can be applied for online on the state's eServices portal or at a Sewa Kendra. ¹²
• Elsewhere: ask the local police station. Tenants: keep a copy of your ID and the agreement ready; it is quick when both sides cooperate.

The rules in each region

Jammu & Kashmir: a new law since November 2025

• The law: the Jammu and Kashmir Tenancy Act, 2025, in force from 1 November 2025. It replaced the 2012 tenancy law; cases already pending under the old law continue under it. ^1,2
• Written agreement, reported within two months: no one may let or rent a home except by a written agreement, and the owner and tenant must jointly tell the Rent Authority within two months of signing. ¹
• Rules notified in July 2026: the agreement can be reported in person or online. The Rent Authority issues a Unique Identification Number and an e-receipt within seven working days. Only the two sides, and people the Rent Authority authorises, can see the details. ^3,4
• Deposit: reported as at most two months' rent for a home and six months' for commercial premises. ⁵
• Overstaying: a tenant who stays on after the tenancy ends pays twice the monthly rent for the first two months, and four times after that. ¹
• Disputes: go to the Rent Authority, Rent Court and Rent Tribunal. A tenant who stops paying rent, misuses the home or sublets without permission can be evicted only by a Rent Court order. If the owner refuses rent, the tenant can deposit it with the Rent Authority. ^1,4

Ladakh

• The law: the Ladakh Tenancy Regulation, 2024 covers the whole Union Territory, with a Rent Authority, Rent Court and Rent Tribunal. It requires a written agreement signed in duplicate, each side keeping an original, and rent paid by traceable means such as bank transfer or cheque. ⁷
• Check first: the Regulation comes into force on a date the Ladakh Administration notifies. Ask the Rent Authority or a lawyer in Leh or Kargil whether it is in force for your tenancy. ⁷

Himachal Pradesh

• The law: the Himachal Pradesh Urban Rent Control Act, 1987, which covers all urban areas of the state. ⁹ Outside towns, the agreement itself sets most of the terms, so write it carefully.

Punjab

• The law: the Punjab Rent Act, 1995, covering urban areas. It applies to tenancies created after it came into force (reported as 30 November 2013). Older tenancies may still fall under the East Punjab Urban Rent Restriction Act, 1949. ^10,11
• Registration and receipts: rent agreements are registered with the Rent Authority of the area. If an owner refuses a rent receipt, the tenant can apply to the Rent Authority, which can award the tenant up to double the rent as damages. ¹⁰

Chandigarh: changing, and in court

• Until 2026: the East Punjab Urban Rent Restriction Act, 1949, extended to Chandigarh in 1974. ²²
• May 2026: the Centre extended the Assam Tenancy Act, 2021 to Chandigarh, with a deposit cap of two months' rent for homes and six months' for commercial premises. ¹⁴
• Then: the Punjab and Haryana High Court put the extension on hold on a lawyers' petition, and said the 1949 Act continues meanwhile. ^15,16 In September 2026 the Chandigarh Administration notified tenancy rules, with online reporting of agreements to a Rent Authority within two months. ¹⁷
• So: check with a Chandigarh lawyer which law applies on the day you sign.

Haryana

• The law: the Haryana Urban (Control of Rent and Eviction) Act, 1973, covering urban areas except cantonments. It controls rent increases and lists the only grounds on which a tenant can be evicted. ¹³
• In practice: most of the terms come from the agreement, so the checklist above matters most.

Moving in, moving out

• Moving in: photograph every room, wall, fitting and appliance, with the date. Note meter readings. Both sides sign the list of fittings. ²⁰
• Moving out: clear the bills, take the same photos from the same angles, and walk through the home with the owner. Hand back all keys against a written acknowledgement. ²⁰
• If the deposit doesn't come back: ask in writing (WhatsApp or email is fine) for the refund or an itemised list of deductions. Keep the record. Where a Rent Authority exists, you can apply to it.

Should you rent or buy?

Renting keeps your savings free and lets you move easily; buying builds an asset but costs a lot upfront. Put in your own numbers to see which leaves you better off. All our tools are on the Calculators page.

Red flags

• No written agreement, or “we'll sign later”.
• The person renting it out can't show they own it, or that the owner has authorised them.
• A deposit of many months' rent, in cash, with no receipt.
• “The deposit isn't refundable”, or a deduction for painting written in as a fixed amount.
• Rent can be raised at any time, or the owner can enter whenever they like.
• Refusing police verification, or asking you to stay unreported.
• Pressure to pay a token amount before you've seen the home.

Renting through Clayyard

Every agent on Clayyard has had their ID, PAN and bank account checked, and RERA registration where they have one. Listing photos are taken at the property. We don't draft or check rent agreements; that's what this guide and your lawyer are for.

Sources

1. The Jammu and Kashmir Tenancy Act, 2025 (Act No. IV of 2025), PRS Legislative Research
2. J&K Official Gazette: the Jammu and Kashmir Tenancy Act
3. Greater Kashmir: J&K Govt notifies tenancy rules to codify landlord-tenant relations
4. Kashmir Life: J&K Govt notifies Tenancy Rules
5. Jammu Virasat: J&K Tenancy Bill 2025, what it means for renters and landlords
6. The Tribune: DM orders mandatory tenant and employee verification in Jammu
7. The Ladakh Tenancy Regulation, 2024 (text published by the UT Administration)
8. District Leh: mandatory submission of tenant information to local police (2025)
9. The Himachal Pradesh Urban Rent Control Act, 1987 (Urban Development Department)
10. The Punjab Rent Act, 1995 (Punjab Act 13 of 2012), India Code
11. Lawyered: The Punjab Rent Act 1995, treading on thin ice
12. Punjab Police tenant verification online: form, fee and process
13. Haryana Urban (Control of Rent and Eviction) Act, 1973, Indian Kanoon
14. The Tribune: Centre extends Assam tenancy law to Chandigarh
15. Bar & Bench: High Court stays notification extending Assam Tenancy Act to Chandigarh
16. The Tribune: HC keeps Assam Tenancy Act in abeyance in Chandigarh
17. The Tribune: Chandigarh notifies new tenancy rules
18. PRS Legislative Research: The Model Tenancy Act, 2021
19. Housing.com: Is registration of an 11-month rent agreement mandatory?
20. RentOk: Security deposits in India
21. Nyaaya: Police verification of tenants
22. East Punjab Urban Rent Restriction Act (Extension to Chandigarh) Act, 1974, India Code

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