In order to reduce the impact of stamp duty, people paid a substantial amount as an interest-free surety, as well as nominal rent. This gap has been filled and, in cases where a refundable deposit is recovered by the owner, a fictitious annual rate of 10% is set on an interest-free deposit and you must pay stamp duty at the same rate for each year of the term of the licence agreement. Nearly 12 million housing units in the country`s urban areas remain empty, although millions of people, including workers and students, happen to be migrants seeking rental housing, as the data show. According to official figures, of the 37.4 million students who attended regular university courses in 2018/19, about 15 million were migrants. According to industry estimates, migrant workers in India`s major urban centres will be seven million men by 2023. The bill also stipulates that tenants staying in a rental unit, as mentioned in the agreement, will be required to pay double the rent for the first two months and four times the rent in the following months. The tenancy agreement should include the name and address of the landlord and tenant, the terms of the tenancy, the duration of the lease, the rent and the amount of the deposit, the restrictions imposed on both parties, the terms of termination of the contract, the terms of renewal and the indication of other costs, such as maintenance costs, repairs, etc. The Lease Registration Act was first passed in Section 107 of the Transfer of Property Act 1882. The Act required the registration of all real estate leases exceeding the one-year term in writing. It did, however, authorize oral agreements for which the agreed lease term was less than one year. This was repeated in Section 17 of the Registration Act of 1908.

If a property is rented for 24 months with a monthly rent of Rs20,000 for the first 12 months and 22,000 Rs. per month for the next 12 months. The registration fee of this agreement would be: 2% of the average rent for 12 months: Rs5.040, (average monthly rent is Rs21,000, average annual rent is 21000 – 12 and 2% is Rs5,040). Under the provisions of the 2019 Standard Rent Bill, landlords cannot apply a pre-fixed rent increase for the entire period for which a tenancy agreement was signed. For example, when the lease expires after 11 months, the lessor cannot increase the monthly rent during that period. It is only at the expiry of this period and the date of registration of the new lease that the lessor is legally entitled to proceed with an increase in the rate that does not generally exceed 10% of the existing amount. In addition, the landlord must give the tenant three months` notice before increasing the rent under the bill.