According to the term and duration of the agreement, the document can be called a lease deed or an agreement for rental. Both these are given different treatments as per laws in force in India.
Lease deeds basically are the agreements made in order to put the property out for a duration of more than 12 months. It is essential for lease deeds to stick to the rigorous rent control norms that are primarily suitable for the tenants. Additionally, rental control regulations at present avoid property owners from charging additional amounts to the tenants and save them from unprecedented or unlawful eviction. At the same time, the authorization to ownership of the concerned property gets shifted from the landlord to the tenant if lease agreement is made, turning it tough for the landlord to remove a tenant out. Thus, in general, the landlords don’t like keeping register lease deeds that are more than 12 months.
Rental agreements on the other side are made for a period of around 11 months, having an option of renewing the agreement when the agreement gets expired. From the perspective of rental agreement, a period of 11 months is simply a license for the tenant to capture the property for a limited time, when rent control regulations are not applied. Additionally, rental agreements beyond 11 months let the landlords go for additional measures if eviction of the tenant occurs. Thus landlords in most cases opt for going into rental accord that goes for 11 months having renewal option at termination of duration.