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All You Need To Know About The Rental Advance

Delhi High Court dismissed a petition asking for directions to waive rent for tenants during the COVID-19 pandemic. As well, the court has said that landlords cannot evict poor tenants for non-payment of rent. That is a relief to those living in rented houses, as they can only charge an advance of one month's rent.

Most of people agree that renting a house is not an easy mission. If not handled properly, it’s really a headache. The main problems while renting the house are: searching for a new tenant, refusing to vacate the premises by the tenant, delay in payment of the rent, initiating over rental advance 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.

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 rental advance 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 personalised 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 finalising 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 refuses to vacate, the landlord can approach the authority which oversees the disputes related to the rental advance with all the required documents.


You should keep in mind several points while renting a house, including setting the right rent amount, advertising the house online, preparing the rental agreement, registering the lease with the court, and verifying the lease with the police. Apart from these, the owner should periodically visit the property to ensure that no rules or regulations have been violated by the tenant.

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