Rent Agreement is the document which establishes the relationship between owner and tenant. That as per provisions of the Registration Act, 1908, the registration of a Rent Agreement is mandatory if the period is 12 months and more than 12 months. For Registration of the Agreement, stamp duty & registration fee needs to be paid. Therefore to avoid such hefty charges, owner & tenant may mutually agree to not get the Rent Agreement Registered. Moreover Rent Agreement for 11 months, gives more flexibility to get the same as it reduce the charges and time also.
