One of the best and best ways to make money is to rent a property. If the property is empty, the owner can rent it to someone. But the most important thing in renting a property is the lease. In this article, we will examine why the lease is only for 11 months and not for 12 months or more. First of all, let us understand what the lease is? The lease is also called a lease agreement. It is a document or a written contract between the owner of a property (owner) and the tenant who rents it. It defines the terms and conditions on the basis of which the property is leased, such as address, nature and size, i.e. description of the property, monthly rental, deposit, purpose of the use of the property, whether commercial or residential activities and duration. In the event of a dispute over the property between the landlord and the tenant, the tenancy agreement acts as evidence.
Terms and conditions can be negotiated, but after signing and also, it is mandatory for the landlord and tenant. Even the terms of the termination of the agreement are mentioned. Why is the lease only for 11 months? If you own a homeowner, you can prevent your tenant from extending their stay on your property by including a clause in the rental agreement on increasing the rent to four or five times the existing rent if they do not leave when the contract ends. This would allow the tenants to be checked for the fault. However, if the tenant has not evacuated the property, even after the termination, you can transfer the court. The court may favour a lessor if it finds that the tenant has been involved in a fault or that the landlord has needed the property for personal use. You can also seek police help to throw away the tenant. Stamp duty – Tax is paid to the government when an agreement or transaction is established. Stamp duty is calculated based on the value of the transaction. It is paid to the government by purchasing stamp paper at fair value.
The tenant must pay a stamp duty that varies from state to state with registration fees (between 500 and 1,000 Rs) when registering tenancy agreements. In Uttar Pradesh, stamp duty on the lease is four per cent, while it is 0.25 per cent in Maharashtra. What corporate social responsibility and how much money is spent for it in IndiaThe most leases are signed for 11 months, which avoids stamp duty and other fees. Under the 1908 Registration Act, registration of leases is mandatory if the rental period is 12 months or more. If a rental agreement is registered, it is also mandatory to pay registration fees and stamp duty. Example: For five years of renting in Delhi, the cost of a stamp paper is 2% of the total annual rent of a year and for more than 5 years, but less than 10 years, it is equal to 3% of the average annual rent. For 10 years or more, but less than 20 years, the rate is 6%. If the deposit is indicated in the contract, then Rs. 100 and Rs.
1100 are added for the registration fee. If a property is rented for 2 years, where the first year of Rs. rent 20,000 per month and for the second year of rental is Rs. 22,000 per month. Then the cost of registering the lease would be: 2% of the average rent for 12 months, which is Rs 5040. This can be explained: the average rent for a month is Rs. 21,000, the average rent for one year is 21,000 -12 and 2% of that amount is 5040. In this amount, if there is a security deposit, then rs 100 and Rs 1100 for registration fees will be added. The total cost will be 6240 billion euros. In addition, the costs of counsel and other paper works are added together and approximately