Renting out your house: agreement, registration, tenant verification

To let a house or flat in Indore, put the terms in a written agreement, pay its stamp duty and register it if the term exceeds one year, give the tenant's details to the police station online, take the deposit through a bank, record the flat's condition on day one, and settle the last day on paper.

Six steps, in the order an owner takes them

1. Write it down. Rent, deposit, term, notice and who pays which bill.
2. Stamp it, and register it if it runs past a year. The duty rises with the length of the term.
3. Inform the police station of the tenant's details, through the MP Police Citizen Portal.
4. Take the deposit through a bank and issue a receipt for it.
5. Record the flat on the first day: a dated inventory with photographs, signed by both of you.
6. Close it on paper when the tenant leaves: a walk-through, final bills, and the deposit settled in writing.

Step 1: what the agreement should say

A handshake tenancy is hard to prove later. Both sign every page and keep a copy each. The agreement should name:

Step 2: stamp duty, and when registration is compulsory

The familiar eleven-month agreement is a habit built around one line of law. The Registration Act makes registration compulsory for a lease of immovable property from year to year, for any term exceeding one year, or one that reserves a yearly rent. Keep the term under a year and registration becomes optional. It does not make the stamp optional.

In Madhya Pradesh the duty on a lease rises with its term, and the state's stamp duty and registration fee chart sets the slab for each term. The registration system, SAMPADA, works out the rupee amount for your particular deed. The chart is revised from time to time, so read the current one, or ask the service provider who prepares the e-stamp, before you sign.

Step 3: tell the police station

In Indore this is not optional. The Police Commissioner issues orders under section 163 of the Bharatiya Nagarik Suraksha Sanhita requiring landlords to do it, and disobeying such an order is punishable under section 223 of the Bharatiya Nyaya Sanhita. In November 2025 police acted against 22 people, including house owners, business owners and hotel and hostel operators, for failing to comply.

It can be done from home:

1. Register once on the MP Police Citizen Portal.
2. Choose the service for tenant or PG information (किरायेदार / पीजी सूचना).
3. Fill it in: your details, the property, and the tenant's details and ID.
4. Keep the proof: the acknowledgement, and a copy of the tenant's ID.

Steps 4 and 5: the money, and a record of the flat

Take the deposit by bank transfer and give a receipt. Take the rent through the bank too, so every month is on record. List in the agreement what the deposit may cover, so deductions at the end are a matter of reading, not arguing.

Then record the flat on the first day. Walk room by room with the tenant and photograph the kitchen's sink, taps, tiles and chimney; each bedroom's wardrobe, fans and lights; the bathroom fittings and geyser; both meter readings; and every key you hand over. Share the dated photographs the same day and both sign the inventory.

The law in force, as of September 2026

• The old rent-control law still decides disputes. The M.P. Accommodation Control Act, 1961 is the law the High Court at Indore applied to an eviction case on 6 February 2026.
• The new law is not law yet. A 2024 draft tenancy bill on the central model was shelved by the department for now, as of July 2026.
• High rents carry TDS. If the rent is more than ₹50,000 a month and the tenant is an individual or HUF, the tenant deducts 2% as tax at source against your PAN. Under the Income-tax Act, 2025 this sits in section 393(1); under the 1961 Act it was section 194-IB.

Step 6: the last day

The day the tenant leaves needs the same paperwork as the day they arrived.

1. Notice in writing, for as long as the agreement says.
2. Walk through together, with the day-one inventory and photographs in hand.
3. Take final readings for electricity and water, and confirm bills are paid to that date.
4. Count the keys back: every set that was handed over.
5. Return the deposit, less only what the agreement allows, with each deduction written down.
6. Both sign off on a short note that nothing is due either way.

Check what the property may be used for

Letting a flat to a family is residential use. Letting it as an office, a clinic or a coaching room may be a change of use, and the master-plan zone and sanctioned layout say what the plot may be used for. Check both first.

Questions people ask

Is registration of a rent agreement compulsory in MP?

Yes for a lease from year to year, for over a year, or reserving a yearly rent. Under a year it is optional, but stamp duty still applies.

What is the stamp duty on a rent agreement in Madhya Pradesh?

It depends on the term: the state's stamp duty chart sets a slab that rises as the lease gets longer. SAMPADA works out the rupee figure for your deed, so check the current chart before you sign.

How do I do tenant police verification in Indore online?

Register on the MP Police Citizen Portal, choose tenant or PG information, fill in the details and keep the acknowledgement.

Is tenant verification mandatory in Indore?

Police Commissioner orders under s. 163 BNSS require it, and disobeying is punishable under s. 223 BNS.

Does my tenant have to deduct TDS on rent?

If the tenant is an individual or HUF and the rent exceeds ₹50,000 a month, they deduct 2% TDS against your PAN, under s. 393(1) of the Income-tax Act, 2025.

Where the facts come from. The facts and figures in this post come from verified government sources and verified RERA-registered brokers.

Indori Zameen is a private platform. It is not a government body and is not affiliated with one — always confirm a record with the concerned authority before you commit money.