All You Need to Know about the Rental Advance

Last Updated at: Oct 27, 2020
 In June, 2020, the Delhi High Court dismissed a petition seeking directions to waive rent payable by tenants during the COVID-19  pandemic. It has also observed that there cannot be any eviction on the ground of non-payment of rent by poor tenants. 


Chennai court, in a relief to people staying in rented houses, has said landlords renting out their premises can ask for only one month’s rent as advance.


Most of the people agree that renting a house is not an easy mission. If not handled properly, its really a headache. The main problems while renting the house are: searching for a new tenant, reject to vacate the premises by the tenant, delay in payment of the rent and not paying the maintenance cost on time.

Many people will agree with the common opinion that giving a house on rent is not an easy mission. It can become a serious headache if not handled appropriately.

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The major problems include looking for new tenants every few years, exploitation of the premises by the tenant or his/her denial to vacate, postponement in payment of rent and non-payment of maintenance fee on time. We will be discussing some important points that an individual should keep in mind while giving his/her house on rental advance.


The first step is to determine the rent amount correctly. It is vital because in such a competitive market one can’t ask for more than the market rate. Asking extra rent will put off potential tenants. However, if the house is well maintained and equipped compared to others, then one can charge a premium.

Therefore, the major factors that decide the rent are capital value, location, amenities provided and demand.


In today’s modern world there are so many ways to advertise if one is giving their house on rent. One just needs to upload the details of their house and, if possible, photographs on the housing websites and wait for those potential tenants to contact them. People who are not tech-savvy can advertise their house in newspapers for a small fee. However, the old-style and most favoured way is to approach a broker.

In fact, advertisements on online portals are mostly placed by brokers on behalf of clients. This has many benefits. A broker gives personalized services to both the landlord as well as the tenant. The broker can also save a lot of time and effort by helping with the preparation of lease agreement, tenant’s police verification etc.


The rent agreement is a legal document which binds both the landlord and the tenant to obey with the mutually-agreed circumstances. It is the most critical document in case of a dispute arising between the two.

Therefore, extreme care should be taken in drafting this document. It should provide all terms and conditions undoubtedly to avoid any dispute in the near future. One should try to take the help of a legal expert in drafting this lease agreement. One should try doing the reference check and most importantly, make sure that police verification is done. This is done for the best interest of all stakeholders. These are some of the important points one must consider while finalizing the agreement.


After the preparation of the lease agreement, the next important thing that needs to be done is registering the lease. Every lease agreement should be mandatorily registered because only in that case it can be used as evidence in the court in case of any litigation. However, according to Section 17 of the Registration Act 1908, it is mandatory to get the agreement registered only if the lease period is more than 11 months and not less than that. For the registration, stamp duty and registration fee needs to be paid.


This procedure helps in checking the background of the tenant. Not doing the police verification is a punishable offence under Section 188 of the Indian Penal Code. This reduces the risk that the house is not being rented out to an individual with a criminal background. For this, the landlord just needs to fill the verification form and then submit it to the local police station along with identity proof of the tenant. The forms will be available online on the websites of state police departments.

Apart from these, the landlord should occasionally visit the premises to check if the tenant is violating any rules and regulations. If yes, the landlord can demand the tenant to vacate the house. If the tenant rejects to vacate, the landlord can approach the authority which oversees the disputes related to the rent with all the required documents.

Major points to keep in mind while renting the house are: deciding the rent amount properly, advertising the house on online portals, preparing the rent/lease agreement, registering the lease in the court and police verification. Apart from these, the owner should visit the premises occasionally to check the tenant has violated any rules and regulations.