Rent agreement in Karnataka: stamp duty, 11 months and registration
What owners and tenants in Bhatkal should put in writing before handing over the keys.
Why most agreements are for 11 months
A lease of up to one year does not have to be registered at the sub-registrar office. A lease for more than one year must be registered. That is why most house rentals are written for 11 months and renewed.
Stamp duty on a rent agreement
The agreement is printed on stamp paper (in Karnataka, an e-stamp certificate) of the right value.
| Lease | Stamp duty |
|---|---|
| Home, up to 1 year | 0.5% of the year's rent, deposit and any advance, up to ₹500 |
| Shop or office, up to 1 year | 0.5% of the same amount, with no ₹500 limit |
| More than 1 year | Higher rates, and the lease must be registered |
Example: a house at ₹15,000 a month with a ₹1,00,000 deposit. 0.5% of ₹2,80,000 is ₹1,400, so the home limit of ₹500 applies.
Rates and rules change. The e-stamp vendor or the sub-registrar office will confirm the amount.
What to write in the agreement
- Names and addresses of owner and tenant, with ID.
- The property address and what is included (furniture, parking).
- Monthly rent, the date it is due, and how it is paid.
- The deposit and when it is returned.
- Who pays electricity, water and maintenance.
- How much the rent goes up at renewal.
- The notice period for either side, usually one or two months.
- Two witnesses.
Before you rent out
- Keep a copy of the tenant's ID.
- Take photos of the house and meters on the day you hand over the keys.
- Accept rent by bank transfer so there is a record.
You can list a house, flat, room or shop for rent free on Bhatkal Properties. Rentals can show a preferred tenant: families, bachelors, working women, students or company lease.
Questions people ask
Does an 11-month rent agreement need to be registered in Karnataka?
No. A lease of up to one year does not have to be registered. A lease longer than one year must be registered at the sub-registrar office.
What is the stamp duty on a rent agreement in Karnataka?
For a home let for up to a year, 0.5% of the year's rent plus deposit and advance, up to ₹500. For a shop or office the same rate applies without the ₹500 limit.
What should a rent agreement include?
Names and IDs, the address, rent and due date, deposit and its return, who pays bills, the yearly increase, the notice period, and two witnesses.