Lodger Agreement (India)
LODGER AGREEMENT (LICENCE)
Indian Contract Act 1872 | Indian Easements Act 1882
IMPORTANT: This agreement creates a LICENCE and not a tenancy or lease. The Licensor resides in the same property and retains possession and control. The Licensee (Lodger) does not acquire any interest in the property and state Rent Control Acts are not applicable.
This Lodger Agreement is entered into on [Agreement Date] between:
(1) [Licensor Name] (Aadhaar: [Licensor Aadhaar], PAN: [Licensor PAN]), the owner-resident of the property at [Property Address] (hereinafter referred to as the "Licensor"); and
(2) [Licensee Name] (Aadhaar: [Licensee Aadhaar]), permanently residing at [Licensee Permanent Address], occupation: [Licensee Occupation] (hereinafter referred to as the "Lodger" or "Licensee").
1. GRANT OF LICENCE
1.1 The Licensor hereby grants to the Lodger a personal, non-exclusive, and non-transferable licence to occupy [Room Description] at [Property Address] (the "Accommodation"), for the purpose of residential lodging only, commencing on [Start Date] for a period of [Duration].
1.2 The Lodger acknowledges that this agreement creates a personal licence and not a lease, tenancy, or any other interest in immovable property. The Licensor continues to reside in the property and retains full possession, dominion, and control over the property.
1.3 The Lodger shall have access to the following shared facilities: [Shared Facilities]. Access to shared facilities is subject to the house rules set out in Clause 5.
1.4 The Accommodation is furnished with: [Furnishings].
2. LICENCE FEE AND DEPOSIT
2.1 The Lodger shall pay the Licensor a monthly licence fee of [Licence Fee], payable in advance by the 5th of each calendar month by bank transfer/UPI/cash.
2.2 The following services are included in the licence fee: [Included Services]. Any additional services not listed shall be charged separately.
2.3 The Lodger has paid / shall pay a refundable security deposit of [Security Deposit]. The deposit shall be refunded within 15 days of the Lodger vacating, subject to deductions for unpaid licence fees or damage to furnishings or property.
3. DURATION AND TERMINATION
3.1 This licence commences on [Start Date] and continues for [Duration], unless sooner terminated.
3.2 Either party may terminate this licence at any time by giving [Notice Period] written notice to the other party.
3.3 The Licensor may terminate this licence immediately without notice if the Lodger: (a) fails to pay the licence fee for more than 10 days after the due date; (b) causes damage to the property or furnishings; (c) violates the house rules after a written warning; (d) uses the Accommodation for any purpose other than residential lodging; or (e) engages in any antisocial, illegal, or offensive behaviour.
3.4 On termination, the Lodger shall vacate the Accommodation immediately, remove all personal belongings, return all keys and access cards, and leave the Accommodation and furnishings in the same condition as at the commencement (normal wear and tear excepted).
4. LODGER'S OBLIGATIONS
4.1 The Lodger shall: (a) pay the licence fee on the due date; (b) keep the Accommodation clean and tidy; (c) take care of the furnishings and report any damage immediately; (d) not make any alterations to the Accommodation; (e) submit to police verification as required by applicable state police regulations, providing their Aadhaar and other details to the Licensor for this purpose; and (f) not sublet or assign this licence or allow any other person to occupy the Accommodation.
5. HOUSE RULES
5.1 The Lodger shall comply with the following house rules: (a) no overnight guests without the Licensor's prior permission; (b) no smoking inside the property; (c) no pets without the Licensor's prior written consent; (d) quiet hours from 10:00 PM to 7:00 AM; (e) shared areas to be kept clean and tidy after use; and (f) compliance with housing society rules and bye-laws (if applicable).
5.2 Violation of the house rules, after a written warning by the Licensor, shall be grounds for immediate termination of this licence.
6. GOVERNING LAW
6.1 This Licence is governed by the Indian Contract Act 1872 and the Indian Easements Act 1882. Any dispute shall be subject to the exclusive jurisdiction of the courts at the location of the property.
Licensor (Homeowner)
________________
Signature
Licensee (Lodger)
________________
Signature
Witness
________________
Signature
What Is a Lodger Agreement (India)?
A Lodger Agreement in India defines what each party must do under the deal and the consequences of failing to perform.
The critical distinguishing feature of a lodger arrangement is that the homeowner continues to reside in the same property and retains general control and access to the premises. The lodger has access to shared facilities (kitchen, bathrooms, common areas) alongside the homeowner and any other residents. This shared occupation by the landlord is what distinguishes a genuine lodger arrangement from a sub-tenancy.
Lodger and paying guest arrangements are extremely common in India, particularly in major cities such as Mumbai, Delhi, Bengaluru, Pune, Hyderabad, and Chennai, where migrant workers, students, and young professionals seek affordable furnished accommodation near their workplaces or educational institutions. The PG accommodation market in India is estimated to be one of the largest in the world.
From a tax perspective, income received by the homeowner from lodger arrangements is taxable as income from house property or business income, depending on the services provided. If meals, laundry, and other services are provided, the income may be treated as business income under the Income Tax Act 1961.
The legal framework governing the Lodger Agreement (India) in India draws on several key statutes and regulatory bodies. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Parties executing a Lodger Agreement (India) in India should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Transfer of Property Act, 1882 sets the foundational requirements.
When Do You Need a Lodger Agreement (India)?
You need a Lodger Agreement when you are a homeowner who rents out a furnished room or rooms in your home to a paying lodger or paying guest while continuing to live in the property. A written lodger agreement protects your interests as the homeowner and clearly establishes the terms of the lodger's occupation, particularly the non-exclusive nature of the arrangement.
You need this agreement to clearly characterise the arrangement as a licence rather than a tenancy, thereby confirming that the lodger does not acquire the security of tenure protections of the applicable state Rent Control Act. This is particularly important in states with strong tenant protection laws, such as Maharashtra, Karnataka, and Delhi, where evicting a tenant under the Rent Control Acts can be a lengthy and difficult process.
You need this agreement to document the house rules, which are a key feature of shared-home lodger arrangements. House rules governing noise, guests, kitchen use, smoking, cleaning responsibilities, and access to common areas should be set out in the agreement itself so that they are contractually binding and can be relied upon as grounds for termination if violated.
You need this agreement for police verification compliance. Many states require homeowners to register lodgers with the local police station or provide particulars for police verification. A written agreement with the lodger's Aadhaar details supports this compliance.
You need this agreement when the lodger wishes to claim House Rent Allowance (HRA) exemption under Section 10(13A) of the Income Tax Act 1961, as proof of rent paid (in the form of receipts) may be required by the lodger's employer or during income tax filing.
Parties in India should prepare a Lodger Agreement (India) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your Lodger Agreement (India)
A thorough India Lodger Agreement should contain the following key elements.
Nature of Arrangement: An express statement that the agreement creates a licence and not a tenancy, and that the licensor resides in the property.
Parties: Full legal names, Aadhaar numbers, and addresses of the licensor (homeowner) and licensee (lodger).
Accommodation: Description of the specific room(s) granted, whether furnished or unfurnished, and an inventory of furnishings.
Shared Facilities: The common areas and facilities (kitchen, bathrooms, lounge, parking, garden) to which the lodger has access.
Licence Fee: Monthly licence fee in INR (₹), due date, and mode of payment.
Security Deposit: Amount, conditions for deductions (unpaid fees, damage), and refund timeline.
Duration and Termination: Start date, duration (if fixed), and notice period for termination by either party.
House Rules: Restrictions on guests, noise, smoking, pets, cooking in room, use of common areas, and any curfew.
Services Included: Whether meals, laundry, Wi-Fi, housekeeping, or other services are included in the licence fee.
Police Verification: Acknowledgment of the lodger's obligation to submit to police verification as required under applicable state police regulations.
Prohibitions: No subletting, no commercial use, no alterations.
Licensor's Right of Access: The licensor's right to access all parts of the property at any time given reasonable notice.
Additional compliance elements for a Lodger Agreement (India) used in India include: Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). The Industrial Disputes Act 1947 and state labour commissioners govern employment disputes. The Information Technology Act 2000 and IT (Reasonable Security Practices) Rules 2011 protect personal data. The Income Tax Act 1961 and Goods and Services Tax Act 2017 govern tax obligations through the Central Board of Direct Taxes (CBDT) and GST Council. Forms-legal.com provides this template as a starting point for India-compliant documentation.
Cite this page
Reference this free template in an article, syllabus, or research note:
Forms Legal. (2026). Lodger Agreement (India) (India) [Legal document template]. Forms Legal. https://forms-legal.com/india/real-estate/leases/lodger-agreement-india
"Lodger Agreement (India) (India)." Forms Legal, 2026, https://forms-legal.com/india/real-estate/leases/lodger-agreement-india.
@misc{formslegal-lodger-agreement-india,
author = {{Forms Legal}},
title = {Lodger Agreement (India) (India)},
year = {2026},
howpublished = {\url{https://forms-legal.com/india/real-estate/leases/lodger-agreement-india}},
note = {Free legal document template. Based on Transfer of Property Act, 1882}
}Also available for these jurisdictions:
Frequently Asked Questions
The distinction between a lodger agreement (licence) and a lease agreement in India has significant legal consequences, particularly regarding the applicability of Rent Control Acts and the landlord's ability to recover possession. A lease, as defined in Section 105 of the Transfer of Property Act 1882, is a transfer of a right to enjoy immovable property for a certain time in consideration of a price paid or rendered. A lease creates an interest in immovable property — the lessee (tenant) acquires a proprietary right in the land for the lease term, which is enforceable against the world. A licence, as defined in Section 52 of the Indian Easements Act 1882, is a right granted by one person (licensor) to another (licensee) to do something upon the licensor's immovable property that would otherwise be unlawful, without creating any interest in the property. A licence is purely personal to the licensee and creates no interest in land. A lodger arrangement — where the owner resides in the same property and provides the lodger with a furnished room, retaining control and access to the premises — is typically classified as a licence rather than a lease. This is significant because:
(1) Rent Control Acts generally apply only to 'tenants' under 'leases'. A licensee (lodger) typically does not enjoy the security of tenure protections of these Acts. (2) A licence can be revoked at will (subject to reasonable notice) without the procedural requirements of eviction under the Rent Control Acts.
A well-drafted lodger agreement in India should address the following aspects to protect both the licensor (landlord) and licensee (lodger) and to distinguish the arrangement clearly from a tenancy. First, the agreement should clearly establish that the arrangement is a licence and not a lease — that the licensor retains general control and ownership of the property, that the licensee does not have exclusive possession of a self-contained unit, and that the licensor resides in the property. This characterisation is important for Rent Control Act purposes. Second, the specific accommodation granted should be described: the room number or description, whether the room is furnished (and if so, the list of furnishings), and the shared facilities (kitchen, bathroom, living areas, parking) to which the lodger has access. Third, the licence fee (commonly called 'rent' or 'paying guest charges') should be stated in INR (₹), the due date, and the mode of payment. Fourth, the security deposit amount and refund terms should be stated, along with the conditions under which deductions may be made. Fifth, house rules that the lodger must observe should be set out — these might include restrictions on guests, noise, cooking in the room, smoking, pets, and use of common areas. Violation of house rules is a key ground for termination of a lodger licence. Sixth, the notice period for termination by either party should be stated. For a licence, a short notice period (7–15 days) is common and enforceable, unlike a lease governed by the Rent Control Acts.
As a general rule, state Rent Control Acts in India apply to 'tenants' occupying premises under a 'lease' and do not apply to licensees under a licence arrangement such as a paying guest or lodger agreement. This is because Rent Control Acts are designed to protect tenants who have a legal right to possession of the demised premises, whereas a licensee has only a personal right to use the premises without any proprietary interest. The Supreme Court of India has considered this distinction in several landmark cases. In Associated Hotels of India Ltd v. R.N. Kapoor (1959), the Supreme Court held that to distinguish a lease from a licence, the court must ascertain whether the document creates an interest in the property (lease) or merely grants permission to use it (licence). The key test is whether the occupant has exclusive possession of the premises. In practice, the following factors point towards a licence (and therefore exclusion from Rent Control Acts): the landlord resides in the same property; the lodger does not have exclusive possession of a self-contained unit; the landlord retains access to and control over the premises; the arrangement includes services (meals, cleaning, laundry) beyond mere occupation; and the agreement expressly states it is a licence. However, courts will scrutinise the actual arrangements, not just the agreement's label.
A Lodger Agreement (India) does not legally require a lawyer in India, and individuals and businesses may draft and execute the document independently. The Transfer of Property Act, 1882 does not mandate legal representation for the creation or signing of this type of document. However, seeking independent legal advice from a qualified India lawyer is recommended for transactions involving substantial financial value, complex regulatory requirements, or cross-border elements where multiple legal jurisdictions may apply. A lawyer can verify that the document complies with all applicable statutory requirements, identify potential risks specific to the transaction, and confirm that the terms adequately protect the interests of all parties involved. The Supreme Court of India has jurisdiction over disputes arising from this type of document, and Registrar of Companies (ROC) may impose additional compliance obligations depending on the nature of the underlying transaction. Professional legal review is particularly advisable where the document will be submitted to government agencies or used as evidence in legal proceedings.
A Lodger Agreement (India) does not legally require a lawyer in India, though legal advice is recommended. Under Indian law, the Indian Contract Act 1872 governs agreements. The Companies Act 2013 and Registrar of Companies (ROC) regulate corporate documents. The Information Technology Act 2000 governs electronic contracts and data protection. The Consumer Protection Act 2019 provides consumer rights. The Income Tax Act 1961 requires tax compliance. Forms-legal.com provides this template as a starting point — always review with a qualified Indian advocate for significant transactions. Under India law, Transfer of Property Act, 1882, parties should seek independent legal advice from a qualified lawyer to confirm compliance with all applicable requirements. Under Indian law, the Indian Contract Act 1872 governs contractual obligations, with Section 10 setting essential requirements for valid agreements. The Companies Act 2013 regulates corporate entities through the Registrar of Companies (ROC) and Ministry of Corporate Affairs (MCA). Forms-legal.com provides this template as a starting point for India-compliant documentation.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
Found an error? Let us knowRelated Documents
You may also find these documents useful:
Residential Lease Agreement (India)
A comprehensive residential lease agreement for India, governed by the Transfer of Property Act 1882, Registration Act 1908, and applicable state Rent Control Acts. Leases exceeding 11 months must be registered with the Sub-Registrar. Includes rent escalation clause, security deposit, maintenance responsibilities, stamp duty and registration guidance, and TDS on rent under Section 194-IB of the Income Tax Act.
NOC for Tenant Police Verification (India)
A No Objection Certificate issued by a landlord to facilitate mandatory police verification of a new tenant in India, as required under state police regulations and the Model Tenancy Act 2021. Provides tenant details, Aadhaar, and landlord consent to the local police station for character and antecedent verification.
Society Flat Rental Agreement (India)
A lease agreement for renting a flat within a registered housing society in India, governed by the Transfer of Property Act 1882, Registration Act 1908, and the applicable State Co-operative Societies Act. Covers NOC from society, maintenance charges, society bye-laws compliance, member transfer fees, and police verification obligations specific to society housing.