Free template
NRI rental agreement format
A rental agreement format for an NRI renting out a home in India: power of attorney, rent into an NRO account, the tenant's TDS duty, deposit and condition report.
Free, no signup. Fill in the brackets, then print it on stamp paper of the value your state asks for.
Clause by clause
1. Parties
This agreement is made on [date] between [owner's name], residing at [address abroad], a non-resident Indian, PAN [ ] ("the Owner"), represented in India by [representative's name] under a power of attorney dated [ ] (Annexure B), and [tenant's name], residing at [ ], PAN [ ] ("the Tenant").
Saying the owner is a non-resident on the face of the agreement is what tells the tenant their tax duty is different (TDS, below). Naming the representative and the power of attorney settles who can sign, receive keys and act while you're abroad.
2. Property
The Owner lets the residential property at [full address] ("the Property"), with the furniture, fittings and appliances listed in Annexure A, to the Tenant for use as a home by the Tenant and their family only.
The inventory is what the deposit is measured against at move-out. Without it, "the fridge was already like that" is one word against another from 5,000 km away.
3. Term
The tenancy runs for [11] months from [start date] to [end date], and may be renewed by a fresh agreement on terms agreed in writing.
Most homes are let for 11 months because an agreement for a year or more must be registered. A longer one is fine: it just has to be registered, and the stamp duty is higher.
4. Rent and how it is paid
The rent is ₹[amount] per month, payable on or before the [5th] of each month by bank transfer to the Owner's NRO account no. [ ], [bank, branch, IFSC]. On renewal the rent increases by [5]%.
Rent from Indian property goes into an NRO account, not NRE. Naming the account in the agreement stops payments landing in a relative's account, which complicates both tax and repatriation.
5. Tax deducted at source (TDS)
As the Owner is a non-resident, the Tenant shall deduct income tax at source from each payment of rent at the rate in force (currently 31.2% of the rent, or the lower rate in any certificate the Owner provides), deposit it with the government under the Tenant's TAN by the due date, file the quarterly TDS return, and give the Owner the TDS certificate (Form 16A) for each quarter within the time allowed.
A tenant paying rent to an NRI must deduct TDS on every month's rent, whatever the amount, and most tenants don't know it. If they don't, the tenant answers for the tax and the owner is left with no credit for it. Putting the duty in the agreement makes it part of the deal, not a surprise in month three.
6. Security deposit
The Tenant has paid a refundable security deposit of ₹[amount] ([ ] months' rent). The Owner will refund it within [30] days of the Tenant handing back the Property and keys, less only unpaid rent or bills and the cost of damage beyond normal wear, measured against Annexure A.
A refund date and a short list of what can be deducted are what stop the deposit becoming a negotiation over WhatsApp after the tenant has left.
7. Bills and maintenance charges
From the start date the Tenant pays electricity, water, gas and internet. The society's monthly maintenance charge of ₹[ ] is paid by the [Tenant / Owner]. Property tax is paid by the Owner.
Unpaid bills are the most common deduction from a deposit. Saying who pays which, from which date, makes the final account simple.
8. Repairs
The Tenant takes care of day-to-day repairs up to ₹[ ] per instance (bulbs, taps, minor plumbing). The Owner pays for structural repairs, major appliances listed in Annexure A that fail through normal use, and anything over that amount, if told in writing first.
From abroad, a clear limit is what saves you being called for every washer. "Told in writing first" stops a large bill arriving after the work is done.
9. Use of the Property
The Tenant will use the Property only as a home, will not sublet it or run a business from it, will keep to the society's rules, and will make no alterations without the Owner's written consent.
Subletting and commercial use are the two things that turn a simple tenancy into a dispute with the society, or with the law.
10. Inspection
The Owner, or the Owner's representative, may inspect the Property at a reasonable time with [24] hours' notice.
An owner abroad can still send someone to look. Notice keeps it reasonable for the tenant.
11. Lock-in and notice
Neither party may end this agreement during the first [6] months, except for a serious breach. After that, either party may end it by giving [1] month's notice in writing.
A lock-in covers the cost of finding a tenant. A short notice period after it keeps both sides free, so nobody is stuck in a tenancy that isn't working.
12. Handing back
At the end of the tenancy the Tenant hands back the Property, its contents as listed in Annexure A, and all keys. Both parties (or the Owner's representative) inspect it together and sign the move-out condition report.
The joint inspection and a signed move-out report are what let the deposit be settled the same week rather than argued over for months.
13. Identity and verification
The Tenant has given the Owner copies of their identity documents and will co-operate with any tenant verification required by the local police.
Many cities expect landlords to have their tenant verified. Owners abroad are the ones most often caught without having done it.
14. Stamp duty, registration and jurisdiction
This agreement is executed on stamp paper of ₹[ ]. Stamp duty and any registration charges are shared [equally]. Courts at [the city where the Property is] have jurisdiction.
Naming the city where the property is keeps any dispute where the property and the evidence are, not wherever the tenant moves next.
15. Signatures
Signed by the Owner (or representative): ____________ Signed by the Tenant: ____________ Witness 1: ____________ Witness 2: ____________ Date and place: [ ]
Two witnesses are usual on Indian rental agreements, and registration offices expect them.
A format to start from, not legal advice. Have a lawyer read it before you rely on it, and check whether your state needs the agreement on stamp paper.
A tenant who doesn't know about TDS
With a non-resident owner, the tenant has to deduct TDS from every month's rent and deposit it under their own TAN, at any rent amount. Most tenants have never done it. Months later, your Indian tax return shows no credit for tax you were owed, and the tenant faces interest and penalties. Put the duty in the agreement, tell the tenant before they sign, and check for a Form 16A every quarter.
Houscade e-signs this agreement with Aadhaar, collects the rent into your account every month, works out the TDS, reminds the tenant when each Form 16A is due, and keeps the condition reports with the property. See how it works for owners abroad.