In this article, you will learn how to master the use of AI in drafting a monthly tenancy agreement and the key components of such an agreement. So, whether you are a law student or a lawyer who drafts a lot of legal drafting work, this article will completely transform your working style and make it faster and better.
Table of Contents
Introduction
I had met a client recently and he told me during our conference,
“Madam, I have been running my textile business from this office space for three years, paying rent every month.
However, the landlord is now threatening to evict me on flimsy grounds.
I thought our monthly arrangement was simple and straightforward…”
He had been operating under a basic month to month arrangement with minimal documentation, believing that regular rent payments and good faith were enough to protect his business interests.
But you might think, what went wrong?
The fundamental problem was the absence of a comprehensive tenancy agreement.
Ravi’s “simple” arrangement had turned into a legal nightmare because neither party had clearly defined their rights, obligations, and limitations from the beginning.
Many assume that monthly tenancy is just about paying rent every month.
That is exactly the misconception that creates costly legal disputes.
A proper monthly tenancy agreement is not just about rent, it is a comprehensive legal framework that protects both parties while establishing clear boundaries for the entire landlord tenant relationship.
Obviously, creating a comprehensive document requires hours of work.
But what if I told you that you can draft a comprehensive tenancy agreement in under 30 minutes?
Surprised? Even I was when I learned about this tool that had been doing the rounds for quite some time.
Do you know what is this magical tool?
It is none other than AI. Yes, you heard that right.
I have been using AI for almost six months and trust me when I tell you, it has completely transformed the way I work.
It has helped me streamline my thoughts and make my work faster and effective.
So, today I have decided to teach you the tricks to use AI to draft a monthly tenancy agreement, and once you master the art of using AI, you will automatically see the difference in your work.
Let me show you how modern legal practice can prevent these disasters by creating a comprehensive and legally sound agreement that actually protects the interests of both parties.
I have written an article on how to draft a leave and license agreement.You can read through that to understand how to master it. However, in that article, I have taught how to draft one from scratch without using AI.
Coming back to the tenancy agreement, first, let us get the basics right.
What is a monthly tenancy agreement?
A monthly tenancy agreement is a legal contract wherein the relationship between the landlord and the tenant is established on a monthly basis. In this agreement, either party can terminate the arrangement with proper notice as per applicable rent control legislation.
Unlike fixed term leases, this agreement provides flexibility while ensuring legal protection.
Let us now understand the components of a tenancy agreement.
What are the components that make a tenancy agreement legally effective?
Based on Maharashtra Rent Control Act requirements and practical experience, every comprehensive monthly tenancy agreement must systematically address eight critical areas:
1. Party identification and legal capacity
Proper identification prevents disputes about who has rights and obligations under the agreement. Both the landlord and the tenant must be clearly named with verifiable details like Aadhaar or PAN numbers to confirm legal capacity. It is necessary to establish that the parties are competent to contract, ensuring minors or unauthorised agents do not sign the agreement.
2. Property description
Detailed property descriptions prevent boundary disputes and unauthorized use of common areas. Specify the exact address, flat number, floor, and amenities (e.g., parking, garden access) to avoid conflicts over the area later.
3. Financial terms and payment structure
Clear rent, deposit, and payment terms protect both parties and ensure enforceability. Also, late payment penalties and interest clauses deter defaults, as non payment is a valid eviction ground under rent control laws.
4. Permitted use and restrictions
Specific use clauses prevent commercial residential conflicts and protect property value. Clearly state prohibitions like subletting without permission or pet restrictions to avoid legal battles, as seen in property misuse cases. These restrictions ensure the property aligns with its intended purpose and prevent disputes from escalating to court.
5. Maintenance and repair obligations
Detailed maintenance provisions prevent costly disputes. In Maharashtra, the landlords handle structural repairs, while tenants cover minor upkeep unless otherwise agreed. Specify who pays for utilities, society charges, and repairs (e.g., plumbing, electrical) to avoid conflicts.
6. Termination and notice requirements
Proper termination clauses ensure compliance with statutory notice periods. You must typically provide a written termination notice to be issued within a specific time period, which helps streamline the eviction process.
7. Statutory compliance and tax obligations
Government compliances such as stamp duty, registration charges, etc, need to be properly included to protect both parties from regulatory violations.
8. Enforcement and dispute resolution
Clear enforcement mechanisms ensure the agreement works in practice, not just on paper. Outline remedies for breaches, such as forfeiture of the deposit for non payment.
How to use AI to draft a monthly tenancy agreement?
Let me walk you through the complete methodology I developed to transform tenancy agreement drafting from a time consuming, error prone process into an efficient, comprehensive system.
Step 1: Teaching AI the legal framework and transaction context
The first step is to establish both the legal foundation and specific transaction details so AI understands we are creating a legally compliant document for a specific landlord tenant relationship.
Why this Matters: AI needs to understand that this is not just a contract; it is a document governed by specific rent control legislation with particular requirements for commercial monthly tenancies.
What not to do: Never start with “Draft a tenancy agreement.” This produces generic content that misses crucial legal protections and statutory requirements.
This is my systematic prompt:
“I need to draft a monthly tenancy agreement for commercial office space in Mumbai under the Maharashtra Rent Control Act, 1999. This involves a female individual property owner granting monthly tenancy to a married couple for their business operations. The property is a specific office space in a commercial building with defined rent, security deposit, and use restrictions. Help me create a comprehensive agreement that protects both parties while ensuring complete compliance with rent control laws, proper Section 55 obligations, and an enforceable monthly tenancy structure with appropriate termination provisions.”
This is the result I received from ChatGPT:
“I understand this requires a legally compliant monthly tenancy agreement under the Maharashtra Rent Control Act, 1999, specifically incorporating Section 55 obligations for both parties. For effective drafting, I need complete details about the landlord and tenant parties, precise property description and location, rental terms including monthly rent and security deposit amounts, permitted use restrictions for commercial purposes, maintenance and repair obligations that comply with statutory requirements, utility payment arrangements, termination notice procedures, and statutory compliance provisions. This document must balance landlord property rights with tenant business interests while ensuring enforceability under Maharashtra rent control legislation and providing proper monthly tenancy flexibility.”
Notice how AI immediately grasped both the legal complexity and the need for specific transaction details. This foundation ensures every subsequent step serves both legal requirements and practical enforceability.
Step 2: Providing comprehensive transaction details
How do you give AI all the necessary information for customized drafting?
Through a systematic organisation that mirrors how experienced real estate lawyers analyse tenancy transactions, complete party details, property specifics, financial terms, and special requirements.
Why this system works: Organized information helps AI understand relationships between different transaction elements, ensuring consistent treatment throughout the agreement and preventing contradictory clauses.
What not to do: Do not provide scattered or incomplete information. Avoid forcing AI to make assumptions about crucial legal or financial terms.
This is my comprehensive prompt:
“Here are the complete transaction details for systematic agreement drafting:
The Parties:
– Landlord: Mrs. Sunita Verma, individual owner residing at 88, Modi Street, Fort, Mumbai 400 001
– Tenants: Mr. Vikram Singh and Mrs. Priya Singh, married couple, Mumbai residents, business partners residing at Silver Heights, Marine Drive, Mumbai 400 020
The Property Details:
– Building Name: Corporate Plaza located at 45/47 Dalal Street, Fort, Mumbai 400 001
– Demised Premises: Office No. 7 on 3rd floor, admeasuring 1200 sq.ft. carpet area
– Survey Numbers: C.S. No. 825 and 826 of Fort Division
– Permitted Use: Commercial office purposes only, no residential use
Financial Terms:
– Monthly Rent: ₹8,000 (inclusive of current property taxes)
– Security Deposit: ₹24,000 (equivalent to 3 months’ rent, interest free)
– Tenancy Commencement: 1st April 2024
– Payment Terms: Monthly rent payable by the 10th of the succeeding month
Special Requirements:
– No subletting without written landlord consent
– Tenant is responsible for the electrical meter and utility charges
– Maintenance of interior premises by the tenant
– 90-day termination notice as per the Maharashtra Rent Control Act
– Compliance with all municipal and government regulations
Create a comprehensive monthly tenancy agreement covering all essential legal aspects while ensuring practical enforceability.”
This is how ChatGPT responded:
“This presents a complete commercial monthly tenancy transaction requiring comprehensive legal documentation. I’ll structure this agreement to include proper legal opening with party identification, detailed property description with survey numbers, clear financial terms with rent and deposit provisions, specific commercial use restrictions, tenant obligations for utilities and maintenance, landlord rights for inspection and property protection, statutory compliance with Maharashtra Rent Control Act including Section 55 requirements, proper termination procedures with 90-day notice provisions, and formal execution requirements.
The agreement must balance commercial flexibility with legal protection for both the property owner and business tenants while ensuring enforceability under current rent control legislation.”
AI now understands both the legal complexity and specific transaction requirements for creating an effective and enforceable agreement.
Also remember that this 90 days period notice period is applicable only in case of eviction on account of non-payment of rent.
Step 3: Drafting the formal opening and legal foundation
How do you establish the proper legal structure for the agreement?
With formal legal language that establishes the document’s authority, properly identifies all parties with their legal capacities, and creates the foundational recitals that explain the transaction context.
Why this structure matters: Courts expect agreements to follow established legal formats. Proper party identification and recitals prevent disputes about document interpretation and enforceability.
What not to do: Do not use casual language or incomplete party descriptions. Avoid informal openings that could undermine the document’s legal authority.
My prompt for the formal opening:
“Based on our transaction details, draft the formal legal opening including: proper agreement title as ‘AGREEMENT OF MONTHLY TENANCY’, execution date and location as Mumbai, complete party identification with Mrs. Sunita Verma as ‘LANDLADY’ including her address and legal succession provisions, Mr. Vikram Singh and Mrs. Priya Singh as ‘TENANTS’ with their address and legal succession under Maharashtra Rent Control Act Section 7(15)(d), and the foundational WHEREAS clauses explaining that landlady owns Corporate Plaza building, tenants requested monthly tenancy for office No. 7 on 3rd floor, landlady agreed to grant tenancy from April 1st 2024, and parties want to record the terms and conditions.”
This is the result generated by ChatGPT:
“THIS AGREEMENT OF MONTHLY TENANCY made at Mumbai this _____ day of __________ 2024 between MRS. SUNITA VERMA residing at 88, Modi Street, Fort, Mumbai 400 001, hereinafter referred to as the “LANDLADY” (which expression shall, unless it be repugnant to the context or meaning thereof shall be deemed to include her heirs, executors, administrators and assigns) of ONE PART and VIKRAM SINGH AND MRS. PRIYA SINGH both of Mumbai Indian Inhabitants residing at Silver Heights, Marine Drive, Mumbai-400 020 hereinafter referred to as the “TENANTS” (which expression shall unless it be repugnant to the context or meaning thereof shall be deemed to include their respective heirs as defined in Section 7(15) (d) of the Maharashtra Rent Control Act,1999) of the OTHER PART
WHEREAS the landlady is the owner of the building known as Corporate Plaza, situated at 45/47 Dalal Street, Fort, Mumbai – 400 001 (hereinafter referred to as the said building).
AND WHEREAS the Tenants have approached the landlady with a request to grant to the Tenants a monthly tenancy in respect of office premises admeasuring 1200 sq.ft. carpet area bearing No. 7 on the 3rd floor of the said building (hereinafter referred to as the “said premises”)
AND WHEREAS the landlady has acceded to the request of the Tenants and has agreed to grant to the Tenants the monthly tenancy in respect of the said premises on and from 1st April 2024 on certain terms and conditions.
AND WHEREAS the parties hereto are desirous of recording the terms and conditions on which the said tenancy shall be granted to the Tenants.”
This establishes the proper legal foundation with formal party identification, statutory references, and a clear transaction context.
Step 4: Core Terms- rent, deposit, and basic obligations
How do you draft the essential operational clauses?
By creating the core provisions that establish the rent amount, security deposit terms, basic tenancy acceptance, and the framework for all subsequent detailed obligations.
Why core terms come first: These provisions establish the fundamental tenancy relationship before addressing detailed obligations. Clear financial terms prevent most common disputes.
What not to do: Never use ambiguous language about rent amounts or payment terms. Avoid unclear deposit refund conditions that could create enforcement problems.
My prompt for core operational terms:
“Based on our established opening, draft the core operational clauses using the standard ‘NOW THIS AGREEMENT WITNESSETH……’ format followed by numbered clauses covering: Clause 1 – landlady grants monthly tenancy of office No. 7, 3rd floor, Corporate Plaza at ₹8,000 monthly rent inclusive of current property taxes with tenant responsibility for future tax increases, tenancy effective from April 1st 2024;
Clause 2 – monthly tenancy subject to terms and conditions recorded below; Clause 3 – security deposit of ₹24,000 being three months rent, interest-free, refundable on termination against vacant possession subject to deductions for unpaid amounts, with landlady acknowledging receipt.”
This is the result generated by ChatGPT:
“NOW THIS AGREEMENT WITNESSETH AND IT IS AGREED AND RECORDED BY AND BETWEEN THE PARTIES HERETO AS UNDER:-
1. That the landlady hereby grants to the Tenants the monthly tenancy in respect of the said office premises admeasuring approximately. 1200 sq.ft. carpet area bearing No. 7 on the 3rd floor of the building known as Corporate Plaza and situated at 45/47 Dalal Street, Fort, Mumbai – 400 001 at the monthly rent of Rs.8,000/- (Rupees Eight Thousand Only) which is inclusive of the proportionate property taxes as is presently levied.
Any further increase in the property taxes in respect of the said premises and any other permitted increase shall be paid by the tenants. The tenants hereby accordingly accept the monthly tenancy of the said premises. The parties hereto agree that the said monthly tenancy has come into effect from 1st day of April 2024.
2. The monthly Tenancy hereby granted is subject to the terms and conditions recorded hereinbelow.
3. In addition to the aforesaid monthly rent the Tenants have already paid to the Landlady a sum of Rs.24,000/- (Rupees Twenty Four Thousand Only) being the security deposit equivalent to three months rent free of interest for the due fulfillment of the terms and conditions of the Agreement of tenancy by the Tenants.
The said deposit shall be refundable on the termination or determination of the tenancy and against the delivery of vacant and peaceful possession of the premises by the Tenants to the Landlady, subject however, to deduction therefrom the unpaid rent and other amounts recoverable by the Landlady from the Tenants under the Agreement of tenancy. The landlady hereby admits and acknowledges the receipt of the said security deposit of Rs.24,000/- (Rupees Twenty Four Thousand Only).”
These core provisions establish clear financial obligations and a basic tenancy framework.
Step 5: Use restrictions and property-specific obligations
How do you address permitted use and space-related restrictions?
By creating specific clauses that define exactly how tenants can use the premises while protecting the landlord’s property interests and other tenants’ rights.
Why restrictions matter: Unclear use provisions lead to disputes about business activities, employee residence, common area usage, and modifications to premises.
What not to do: Do not use vague language like “business purposes only.” Avoid incomplete restrictions that miss common problem areas like cooking, storage, or employee residence.
My prompt for use restrictions and property obligations:
“Continue with clauses covering use restrictions and property-related obligations: Clause 4 – premises to be used only for lawful business purposes, no residential use, no staff/employee residence, limited cooking to small pantry only, prohibition on restaurant/eating house/liquor bar/warehousing; Clause 5 – tenants have no rights to any part of building except demised premises; Clause 6 – common passages only for ingress/egress, no storage of articles in common areas; Clause 7 – payment of permitted increases and monthly rent by 10th of succeeding month.”
This is the result generated by ChatGPT:
“4. The Tenants shall use the said premises only for lawful business purposes and for no other purpose. The Tenants shall not use the said premises for residential purposes, nor shall they permit their staff, servants and/or employees to reside in the said premises, nor any cooking will be done in the said premises, save and except small pantry. The tenants shall not use the said premises for running a restaurant, eating house, liquor and beer bar and/or for warehousing and/or as godown.
5. The Tenants shall have no right to use any part of the building save and except the said premises of which tenancy is granted to the Tenants on monthly tenancy basis.
6. The Tenants shall use the common passages only for ingress and egress to the tenanted premises and shall not use the said passages for any other purpose nor shall the Tenants keep and/or store any articles and/or things in the said common passages.
7. The Tenants agree to pay from time to time the permitted increases payable by them in respect of the said premises and shall pay the monthly rent with permitted increases on or before 10th of the next succeeding month of tenancy.”
These clauses create clear boundaries for property use while protecting the landlord’s interests.
Step 6: Utilities, alterations, and maintenance framework
How do you handle the practical operational aspects of tenancy?
By addressing utilities, maintenance responsibilities, alterations, and property care obligations that are essential for smooth landlord-tenant relationships.
Why operational details matter: Most tenancy disputes arise from unclear expectations about who pays for utilities, handles maintenance, or can make property modifications.
What not to do: Do not leave utility responsibilities ambiguous. Avoid unclear maintenance obligations that could violate statutory requirements.
My prompt for operational provisions:
“Continue with operational clauses covering: Clause 8 – tenants to take electric meter in their name or transfer existing meter, pay electricity charges directly, pay water charges; Clause 9 – no subletting or transfer without written landlord consent, no third party induction; Clause 10 – no alterations without written landlord consent; Clause 11 – tenants keep premises in good tenantable repair at their cost; Clause 12 – landlord inspection rights on working days during office hours with 24 hours notice.”
This is the result generated by ChatGPT:
“8. The Tenants will take new electric meter in their name or get the existing meter transferred in their name and shall pay the electricity charges directly according to the said meter. The tenants shall also regularly pay the water charges, if any, payable by them.
9. The Tenants shall not part with possession of the said premises or any part thereof and/or transfer any interest therein to any third parties under any agreement and/or arrangement nor induct third parties into the said premises without prior written consent of the landlady.
10. The Tenants shall not carry out any additions and/or alterations of any nature whatsoever in the said premises without the previous written consent of the landlady.
11. The Tenants shall keep the said premises in good and tenantable repairs at their cost in all respects.
12. The Tenants shall permit the landlady by herself and/or through her duly authorised representatives to inspect the said premises on any working day during office hours by 24 hours previous notice.”
These provisions establish clear operational responsibilities and protection mechanisms.
Step 7: Care, maintenance, and statutory compliance
How do you ensure comprehensive coverage of care obligations and legal compliance?
By creating detailed provisions that address property care, specific maintenance responsibilities, advertising restrictions, and compliance with government regulations.
Why comprehensive coverage matters: Gaps in care obligations create disputes. Inadequate statutory compliance provisions can expose both parties to regulatory violations.
What not to do: Don’t use general “reasonable care” language without specifics. Avoid missing advertising, taxation, or government compliance requirements.
My prompt for care and compliance provisions:
“Continue with care and compliance clauses covering: Clause 13 – no acts causing damage to premises or building; Clause 14 – no storage of dangerous/hazardous/inflammable materials; Clause 15 – reasonable care and prudence, no nuisance to other tenants; Clause 16 – tenant responsibility for internal painting when required; Clause 17 – tenant responsibility for electrical repairs; Clause 18 – no advertisements except name plate; Clause 19 – confirmation of monthly tenancy status; Clause 20 – payment of all taxes and municipal charges; Clause 21 – compliance with municipal and government regulations.”
This is the result generated by ChatGPT:
“13. The Tenants shall not do any act, deed or thing which causes damage and/or deterioration to the said premises or the said building or any part thereof.
14. The Tenants shall not store in the said premises any dangerous, hazardous and/or inflammable goods, substances materials and/or chemicals.
15. The Tenants shall use the said tenanted premises with reasonable care and prudence as is expected of a person of ordinary prudence and shall use the said premises in such a manner that does not cause any nuisance, disturbance and/or obstruction to other tenants in the building.
16. The distempering and/or oil-painting of the said premises internally as and when called upon by the landlady, shall be carried out by the tenants at their own costs.
17. The repairing of the electrical fittings shall also be carried out by the tenants at their own costs. The landlady shall not be called upon to carry out any repairing work.
18. The tenants shall not exhibit any advertisement from the demised premises and/or on the outer wall except affixing the name plate.
19. It is clearly understood that the tenants are monthly tenants in respect of the said premises.
20. The tenants shall pay all the taxes and permitted increases, including taxes levied by the Mumbai Municipal Corporation or any other authorities.
21. The tenants shall comply with all Rules and Regulations of the Mumbai Municipal Corporation and Government and all requisitions of any local authority.”
These provisions ensure comprehensive care obligations and regulatory compliance.
Step 8: Insurance, notice, and termination provisions
How do you handle insurance compliance and termination procedures?
By addressing insurance policy requirements, notice procedures, and statutory termination provisions that ensure compliance with rent control legislation.
Why insurance and termination clauses matter: Insurance compliance protects property value while proper termination procedures ensure enforceability under the Maharashtra Rent Control Act provisions.
What not to do: Do not ignore insurance requirements or use termination procedures that don’t comply with statutory notice periods.
My prompt for insurance and termination provisions:
“Continue with insurance compliance, repair clarifications, notice service procedures, and termination provisions covering: Clause 22 – no acts invalidating insurance policies; Clause 23 – tenant repair obligations without landlord contribution; Clause 24 – notice service provisions; Clause 25 – termination upon 90 days unpaid rent with Maharashtra Rent Control Act Section 15 application.”
This is the result generated by ChatGPT:
“22. The tenants shall not do anything which shall invalidate or make voidable any insurance policies in force in respect of the said building.
23. The tenants shall keep the demised premises in good and tenantable repairs at their own costs and shall not make the landlady liable to contribute any amount towards repairs.
24. If any notice is required to be given to the tenants, the same shall be considered duly served if delivered, left or posted addressed to the tenants at the tenanted premises.
25. If the rent hereby agreed or any part thereof shall be unpaid for a period of 90 (Ninety) days from receipt of written demand by the landlady, the tenancy shall stand determined and all provisions of Section 15 of the Maharashtra Rent Control Act, 1999 shall follow.”
These provisions ensure insurance compliance and proper termination procedures.
Step 9: Final formalities and legal completion
How do you complete the agreement with proper legal formalities?
By adding possession acknowledgments, landlord representations, property schedule, and execution requirements that make the document legally complete.
Why final formalities matter: Possession acknowledgments prevent disputes, while property schedules and execution formalities ensure legal validity and court enforceability.
What not to do: Do not skip the landlord’s representations about the title. Avoid incomplete property descriptions or informal execution that could affect enforceability.
My final completion prompt:
“Complete the agreement with final provisions covering: Clause 26 – possession delivery and acknowledgment; Clause 27 – landlord representations about property title and leasing authority in clause i and ii; property schedule describing Office No. 7, 1200 sq.ft., 3rd floor, Corporate Plaza, 45/47 Dalal Street with survey numbers C.S. 825 and 826; proper execution format of Signed and Delivered with witness signature blocks for all parties”
This is the complete agreement as generated by ChatGPT.
I have made some minor modifications in red to make it ready.
THIS AGREEMENT OF MONTHLY TENANCY made at Mumbai this _____ day of __________ 2024 between MRS. SUNITA VERMA residing at 88, Modi Street, Fort, Mumbai 400 001 hereinafter referred to as the “LANDLADY” (which expression shall unless it be repugnant to the context or meaning thereof shall be deemed to include her heirs, executors, administrators and assigns) of ONE PART and VIKRAM SINGH AND MRS. PRIYA SINGH both of Mumbai Indian Inhabitants residing at Silver Heights, Marine Drive, Mumbai-400 020 hereinafter referred to as the “TENANTS” (which expression shall unless it be repugnant to the context or meaning thereof shall be deemed to include their respective heirs as defined in section 7(15) (d) of the Maharashtra Rent Control Act,1999) of the OTHER PART
WHEREAS the landlady is the owner of the building known as Corporate Plaza, situated at 45/47 Dalal Street, Fort, Mumbai – 400 001 (hereinafter referred to as the said building).
AND WHEREAS the Tenants have approached the landlady with a request to grant to the Tenants a monthly tenancy in respect of office premises admeasuring 1200 sq.ft. carpet area bearing No.7 on the 3rd floor of the said building (hereinafter referred to as the “said premises”)
AND WHEREAS the landlady has acceded to the request of the Tenants and has agreed to grant to the Tenants the monthly tenancy in respect of the said premises on and from 1st April 2024 on certain terms and conditions.
AND WHEREAS the parties hereto are desirous of recording the terms and conditions on which the said tenancy shall be granted to the Tenants.
NOW THIS AGREEMENT WITNESSETH AND IT IS AGREED AND RECORDED BY AND BETWEEN THE PARTIES HERETO AS UNDER:-
1. That the landlady hereby grants to the Tenants the monthly tenancy in respect of the said office premises admeasuring approximately 1200 sq.ft. carpet area bearing No 7 on the 3rd floor of the building known as Corporate Plaza and situated at 45/47 Dalal Street, Fort, Mumbai – 400 001 at the monthly rent of Rs.8,000/- (Rupees Eight Thousand Only) which is inclusive of the proportionate property taxes as is presently levied. Any further increase in the property taxes in respect of the said premises and any other permitted increase shall be paid by the tenants. The Tenants hereby accordingly accept the monthly tenancy of the said premises. The parties hereto agree that the said monthly tenancy has come into effect from 1st day of April 2024.
2. The monthly Tenancy hereby granted is subject to the terms and conditions recorded hereinbelow.
3. In addition to the aforesaid monthly rent the Tenants have already paid to the Landlady a sum of Rs.24,000/- (Rupees Twenty Four Thousand Only) being the security deposit equivalent to three months rent free of interest for the due fulfillment of the terms and conditions of the Agreement of tenancy by the Tenants. The said deposit shall be refundable on the termination or determination of the tenancy and against the delivery of vacant and peaceful possession of the premises by the Tenants to the Landlady subject however to deduction therefrom of the unpaid rent and other amounts recoverable by the Landlady from the Tenants under the Agreement of tenancy. The landlady hereby admits and acknowledges the receipt of the said security deposit of Rs.24,000/- (Rupees Twenty Four Thousand Only).
4. The Tenants shall use the said premises only for lawful business purposes and for no other purpose. The Tenants shall not use the said premises for residential purposes nor shall they permit their staff servants and/or employees to reside in the said premises nor shall any cooking will be done in the said premises save and except small pantry. The tenants shall not use the said premises for running restaurant, eating house, liquor and beer bar and/or for warehousing and/or as a godown.
5. The Tenants shall have no right to use any part of the building save and except the said premises of which tenancy is granted to the Tenants on a monthly tenancy basis.
6. The Tenants shall use the common passages only for ingress and egress to the tenanted premises and shall not use the said passages for any other purpose nor shall the Tenants keep and/or store any articles and/or things in the said common passages.
7. The Tenants agree to pay from time to time the permitted increases payable by them in respect of the said premises and shall pay the monthly rent with permitted increases on or before the 10th of the next succeeding month of tenancy.
8. The Tenants will take a new electric meter in their name or get the existing meter transferred in their name and shall pay the electricity charges directly according to the said meter. The tenants shall also regularly pay the water charges, if any, payable by them.
9. The Tenants shall not part with possession of the said premises or any part thereof and/or transfer any interest therein to any third parties under any agreement and/or arrangement nor induct third parties into the said premises without prior written consent of the landlady.
10. The Tenants shall not carry out any additions and/or alterations of any nature whatsoever in the said premises without the previous written consent of the landlady.
11. The Tenants shall keep the said premises in good and tenantable repairs at their cost in all respects.
12. The Tenants shall permit the landlady by herself and/or through her duly authorised representatives to inspect the said premises on any working day during office hours by 24 hours previous notice.
13. The Tenants shall not do any act deed or thing which causes damage and/or deterioration to the said premises or the said building or any part thereof.
14. The Tenants shall not store in the said premises any dangerous, hazardous and/or inflammable goods substances, materials and/or chemicals.
15. The Tenants shall use the said tenanted premises with reasonable care and prudence as is expected of a person of ordinary prudence and shall use the said premises in such a manner that does not cause any nuisance disturbance and/or obstruction to other tenants in the building.
16. The distempering and/or oil-painting of the said premises internally as and when called upon by the landlady shall be carried out by the tenants at their own costs.
17. The repairing of the electrical fittings shall also be carried out by the tenants at their own costs. The landlady shall not be called upon to carry out any repairing work.
18. The tenants shall not exhibit any advertisement from the demised premises and/or on the outer wall except affixing the name plate.
19. It is clearly understood that the tenants are monthly tenants in respect of the said premises.
20. The tenants shall pay all the taxes and permitted increases including taxes levied by the Mumbai Municipal Corporation or any other authorities.
21. The tenants shall comply with all Rules and Regulations of the Mumbai Municipal Corporation and Government and all requisitions of any local authority.
22. The tenants shall not do anything which shall invalidate or make voidable any insurance policies in force in respect of the said building.
23. The tenants shall keep the demised premises in good and tenantable repairs at their own costs and shall not make the landlady liable to contribute any amount towards repairs.
24. If any notice is required to be given to the tenants, the same shall be considered duly served if delivered, left or posted addressed to the tenants at the tenanted premises.
25. If the rent hereby agreed or any part thereof shall be unpaid for a period of 90 (Ninety) days from receipt of written demand by the landlady, the tenancy shall stand determined and the eviction proceedings shall follow in accordance with the all provisions of Section 15 of the Maharashtra Rent Control Act, 1999 shall follow.
26. The landlady has put the tenants into vacant and peaceful possession of the said premises to be occupied by tenants as monthly tenants and the tenants hereby acknowledge receipt of possession.
27. The Landlady has represented to the tenants as follows:
i) That she is absolutely entitled to the said property known as Corporate Plaza situated at 45/47, Dalal Street, Fort, Mumbai – 400 001, in which the said premises are situated.
ii) The Landlady is competent and lawfully entitled to let out the said premises without any claim of any third party.
THE PROPERTY SCHEDULE:
Premises No.7 admeasuring about 1200 sq.ft. (carpet area) on the 3rd floor of the building known as “Corporate Plaza” and situated at 45/47 Dalal Street, Fort, Mumbai – 400 001 and standing on the plot of land bearing C.S. No. 825 and 826 of Fort Division within the registration district and sub district of Mumbai City and Mumbai Suburban.
IN WITNESS WHEREOF the parties to these presents have put their hands at Mumbai the day and year first hereinabove written.
SIGNED AND DELIVERED
by the withinnamed LANDLADY
SMT. SUNITA VERMA
Witnesses:
SIGNED AND DELIVERED
by the withinnamed TENANTS
(1) VIKRAM SINGH AND
(2) MRS. PRIYA SINGH
Witnesses:
Conclusion
Mastering AI to draft a tenancy agreement is a game changer for both lawyers and law students.
By learning the art of giving precise prompts and a structured approach, you can create a comprehensive and legally sound agreement in under 30 minutes, saving hours of manual work while ensuring compliance with state-specific laws like the Maharashtra Rent Control Act, 1999.
From defining party roles to outlining termination clauses, AI streamlines the process, embedding statutory protections and practical enforceability. Embrace this tool, and you will not only transform your workflow but also deliver agreements that safeguard clients from disputes, ensuring peace of mind for landlords and tenants alike.
Frequently asked questions (FAQs)
1. What if my state’s rent laws differ from Maharashtra’s?
Adjust your prompt to specify your state’s legislation. AI can adapt the agreement to comply with local requirements if given precise instructions.
2. Do I need to be a legal expert to use AI for drafting?
No, but understanding basic tenancy laws helps. Clear, structured prompts (like those in the article) guide AI to produce legally sound agreements, even for beginners.
3. What are the most common mistakes in monthly tenancy agreements?
Common errors include vague property descriptions, unclear financial terms, or missing termination clauses, which can lead to disputes or unenforceability. AI helps avoid these by prompting for specific details and embedding statutory requirements.
4. Can a landlord evict a tenant without a court order in Maharashtra?
No, the Maharashtra Rent Control Act, 1999, mandates a court order for eviction.
5. Do I need to register a monthly tenancy agreement in Maharashtra?
In Maharashtra, if the term of the tenancy agreement is under 11 months, then the registration is optional, but agreements exceeding 11 months must be registered with the sub-registrar under the Registration Act, 1908.
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