If the property is standing in name of wife then the rental agreement has to be done in her name only.
Where a property is owned jointly by spouses, each spouse is subject to income tax on 50% of the rental profit irrespective of the respective percentage ownership of the property by each spouse. If each spouse is liable to income tax at the same marginal rate, the 50/50 split is acceptable for tax purposes. But that only be done when the property is jointly owned.
Section 44 of the Transfer of Property Act 1882, deals with transfers by one co-owner. Where one co-owners of immovable property legally competent in that behalf, transfers his share of the property, the transferee acquires the transferor’s right to joint possession or use of the property.
An owner who wants to add a co-owner to his property, will have to do so by way of creating a new deed altogether. This new deed must also be registered at the sub-registrar’s office, to attain a legal validity under the Transfer of Property Act.
You can sell a portion of the property to the co-owner and register the same in his name with a sale deed duly registered with the concerned sub-registrar of the area. The stamp duty and the registration charged need to be paid as per rules.
Reference: Transfer of Property Act.