Leave & Licence vs Rent Agreement: what's the difference?
In Maharashtra, the standard format is a Leave & Licence Agreement — not a regular rent agreement. This distinction is important.
- A Leave & Licence grants a temporary licence to occupy the property — it does NOT create a tenancy with permanent rights.
- At the end of the licence period, the agreement automatically terminates. This makes it much easier for landlords to reclaim their property compared to a standard lease.
- The standard term is 11 months, though longer terms are legally permitted.
Do not use a standard "rent agreement" template you found online. Use a Maharashtra-specific Leave & Licence format. Services like NoBroker, LegalDesk, or RentDraft can generate the correct format for a small fee.
Registration is mandatory — no exceptions
Under Section 55 of the Maharashtra Rent Control Act, ALL Leave & Licence agreements must be registered with the government, regardless of duration. Even 11-month agreements. Even short-term ones.
An unregistered agreement cannot be produced as primary evidence in court. In a dispute, you are effectively unprotected. Under Section 55(3), a landlord who fails to register can face prosecution — up to 3 months' imprisonment or a fine up to ₹5,000. Worse: without registration, the tenant's version of the tenancy terms is legally presumed correct unless you can prove otherwise.
The good news: registration has been made easy and can be done fully online or with doorstep biometric service — you do not need to visit any office.
- Draft the agreement using an online service (NoBroker, AgreementDesk, RentDraft, or similar).
- Pay stamp duty digitally — from July 2025, physical stamp paper is no longer accepted in Maharashtra. Use the e-SBTR or SHCIL online portal.
- Both landlord, tenant, and two witnesses complete biometric verification. Doorstep biometric services are widely available across Mumbai and suburbs.
- Register through the IGR Maharashtra portal (igr.maharashtra.gov.in) or at the nearest Sub-Registrar office.
- The registered agreement is delivered digitally and saved in the government database.
| Item | Formula / Amount |
|---|---|
| Stamp duty | 0.25% × (monthly rent × number of months + 10% of deposit) |
| Registration fee | ₹1,000 in municipal areas |
| Example: ₹30,000/mo, 11 months, ₹60,000 deposit | ≈ ₹1,072 stamp duty |
| Typical total government charges | ₹2,000–3,000 + service fees if using an online platform |
For renewals, you cannot simply extend the old agreement. You must create and register a completely new agreement, even if all terms are identical.
Society NOC: what's actually required (and what isn't)
One of the most misunderstood areas of Mumbai renting — even among experienced landlords. Here is the accurate legal position:
An NOC from your housing society is NOT legally mandatory under Maharashtra bye-laws. You are required to inform the society — not get their permission. Similarly, Mumbai Police has officially confirmed that no NOC from the police is required to rent out your flat.
In practice, here is what you should actually do:
- Inform your society in writing — a simple letter or WhatsApp to the secretary — that you are renting out the flat. Provide the tenant's basic details as a courtesy.
- Complete police verification via the Mumbai Police online portal or your nearest police station. This IS mandatory.
- Pay the non-occupancy charge your society levies each month. This is standard and legal.
Non-occupancy charges are capped at 10% of Service Charges by a Supreme Court ruling. If your society charges more, they are acting illegally.
Police verification: mandatory, not optional
Tenant police verification is compulsory in Mumbai under Section 144 of the Maharashtra Police Act, 1951. Failure to submit can result in an FIR against the landlord and a fine. The process is free of cost.
- Visit the official Mumbai Police Tenant Information Portal: mumbaipolice.gov.in → Report Us → Tenant Information. Fill in property owner details, rented property details, tenant's details, and workplace information. Upload tenant's ID proof and photo.
- Submit online and receive an OTP. After verification, you get a PDF acknowledgement — your proof of compliance, shareable with your society office.
- Alternatively, submit the physical form at your local police station with copies of the agreement and tenant ID. Get a stamped acknowledgement.
- Complete this within 15 days of the tenant moving in. At the time of renewal, submit a fresh verification form.
What your agreement must include
- Full names, addresses, and ID numbers of the landlord and all tenants.
- Monthly rent amount, due date, and accepted payment methods.
- Security deposit amount and the conditions under which deductions may be made.
- Lock-in period — minimum tenure before either party can exit (typically 11 months).
- Notice period required from both sides (standard is one month, but can be more).
- Number of permitted occupants.
- Strict prohibition on subletting without written landlord consent.
- Maintenance responsibilities — who pays for what repairs.
- Rent escalation clause — typically 5–10% increase at renewal.
- Condition of property at move-in, referenced to photos/inventory.
- Rules on modifications (no permanent alterations without landlord approval).