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:
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:
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.
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.
