To Rent Or Not To Rent: Laws You Should Know

Rent Laws You Should Know: Moving to a new city or even a new locale within the same city is a huge decision and an even huger task. Number one on the to do list would be finding a home for yourself.

If you choose to rent one, there are certain essentials you must know before settling into your home away home.

1. Mandatory written lease agreement

A written lease agreement spells out the exact roles, responsibilities and liabilities of both the tenant and the landlord. Such an agreement is legally binding on both parties and neither can act in violation of its covenants without consequences.  Ideally, agreements that are for a term of 11 months or less are not required to be registered as per the Registration Act. However, it is mandatory to register an agreement that is for a term of 11 months 1 day and beyond, failing which a penalty is imposed. If your landlord refuses to execute a written lease agreement, feel free to refuse and walk out on the deal as staying could very well go against your security and peace of mind.

Such an agreement is registered before the office of the local sub-registrar and drawn up on a stamp paper of an amount as calculated under the Stamp Act. Any changes in this agreement at a later date must be documented in writing as well. Therefore, it is prudent to seek the advice of a legal practitioner at the time of drawing up the agreement. Rent Law

2. Landlord’s Access Rent Law

It is very important for a tenant to remember that the landlord may be the owner but that does not mean he or she can barge in at any time they please. Under the Model Tenancy Act, 2021, no landlord or a property manager appointed by the landlord is allowed to enter the rented premises without prior notice of 24 hours in writing explaining the reason for entering in to the premises as well. Even then, the landlord or his appointed manager cannot enter your home for any reason except for carrying out repairs or replacement, carrying out an inspection of whether the premises is habitable or not; or for any reason that is specified in your written lease agreement.

Though the Model Tenancy Act, 2021 has been approved by the Union Cabinet, It is yet to be adopted and implemented and as of now, we are governed by the Transfer of Property Act. So be sure to insist on including the conditions under which the landlord can or cannot access the premises in your lease agreement. Rent Law

3. Fair Rent and Increase of Rent Rent Law

The landlord cannot ask for any amount of rent as he or she may please. Usually, the rent is between 8% to 10% of the property value. The landlord also has the right to increase the rent on an annual basis by 5% to 8%. In case of a dispute with respect to the rent amount or the increase in the rent, you are free to approach the local Rent Authority.

4. Security Deposit

The landlord cannot ask the tenant to give more than two months of rent as security deposit. This deposit is liable to be returned to the tenant within a period of 30 days after the end of the tenancy with genuine deductions if required.

5. Liabilities and Maintenance of the Property Rent Law

Prior to the tenant moving into the premises, it is the owner’s duty to ensure that the premises is in a habitable state. Once the lease agreement is executed, the maintenance of the property is a shared responsibility between the tenant and the landlord unless otherwise specified in the agreement.

A tenant is responsible to maintain the original conditions of the property except for the usual wear and tear, failing which the owner can deduct the repair charges from the security deposit.

6. Lock-in Period and Notice Period Rent Law

Before you decide to rent the premises, clarify from the owner whether there is a lock-in period in your arrangement or not and have the same included in the lease agreement. Rent Law

A notice period for vacating the premises is usually of minimum 15 days to 2 months, whatever is agreed upon.  The landlord cannot ask the tenant to vacate the premises without a written notice with a specified valid reason after which he liable to charge double the rent as compensation.  The tenant can invoke this notice period as well and vacate the premises on a date prior to the end of the tenancy on terms as agreed upon with the landlord. In such a case, the tenant need not pay the entire monthly rent amount and may pay only for the period that they have stayed in the premises or the same can be deducted from the security deposit.

7. Forced Extension and Replacement

The landlord cannot insist upon continued tenancy if the tenant has invoked the notice period. Moreover, the landlord does not possess the right to demand a replacement tenant either.

8. In case of a Deceased Tenant Rent Law

The tenancy rights in the case of a tenant’s death devolved onto the deceased tenant’s legal heir i.e. spouse, child.

9. Other essentials Rent Law

• Lifestyle Restrictions

Many times, landlords impose lifestyle restrictions – No non-vegetarian food, no parties, no guests of the opposite gender etc. As a tenant you must enquire about these from the owner prior to rent the premises and have these penned down.

• Know your local police station for security purposes
• Speak to other residents, neighbours and the RWA before renting the premises.

10. Though there exists a central Rent Control Act, but majority of the State Governments have tweaked the same as per their requirements. Make sure to read them before signing that agreement:

• Delhi Rent Act, 1995
• The Maharashtra Rent Control Act 1999
• Tamil Nadu Building (Lease and Rent Control) Act, 1960
• The Karnataka Rent Act, 1960

Mannat Singh is an advocate. The views expressed are the authors own.