The two documents explained
In India, a property can be occupied under either a lease/tenancy (a rent agreement) or a leave and license agreement. The difference sounds technical but changes your rights dramatically:
Rent Agreement Stamp Duty & Registration Calculator
Estimate state-wise e-stamp duty, registration fees, and legal thresholds for rental agreements.
Managing rented flats, PGs, or villas in India?
Track rent in ₹, auto-split utility bills, send payment reminders over WhatsApp & issue legal receipts without Excel sheets.
Which one do landlords prefer?
Most landlords in India — especially in Maharashtra, Karnataka, and Delhi — prefer a leave and license agreement because it is easier to terminate. When a license period ends, the occupant must vacate; there is no tenancy right to fight. This is the standard choice for apartments in Mumbai and Bangalore.
Stamp duty and registration
The costs differ meaningfully by state. You can calculate your exact state fees with our Rent Agreement Stamp Duty Calculator, or read our detailed state-wise analysis in the Rent Agreement Stamp Duty Guide India:
The 11-month rule
You will often see agreements drawn for exactly 11 months. This is not a legal requirement — it is a practice to avoid mandatory registration (which kicks in above a year in some states) and to make the tenancy easier to renew or end. An 11-month leave and license is the most common structure for Indian apartment rentals. But be careful: if a dispute arises, understand how judges view unregistered documents in our legal guide on Unregistered Rent Agreement Validity in Indian Courts.
Which should you choose?
If you want flexibility to reclaim your property easily, use a leave and license. If you are renting to a long-term commercial tenant or want a longer, more stable arrangement, a rent agreement/lease may suit. When in doubt, consult a local lawyer — a few hundred rupees now can save a court battle later.
How TenantsFlo helps
TenantsFlo stores the agreement type and term for each tenant, tracks when the agreement expires, and alerts you before the term ends — so you can renew, renegotiate, or end it on time instead of waking up to a tenant who has acquired rights by default.