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Rent legislation in India is primarily governed by the Rent Control Acts enacted by individual states.

These
Acts provide a framework for regulating the relationship between landlords and tenants, setting out rights, obligations,
and procedures for rent determination, eviction, and dispute resolution. Here are some key points related to rent
legislation in India:

1. Rent Control Acts: Each state in India has its own Rent Control Act or similar legislation that governs rental
properties within its jurisdiction. The Rent Control Acts vary across states in terms of their applicability,
provisions, and scope.

2. Applicability: Rent Control Acts generally apply to residential and commercial properties that fall within their
purview. Some states differentiate between different categories of tenancies, such as protected tenancies, non-
protected tenancies, and limited tenancies, each with its own set of rules.

3. Rent Determination: Rent Control Acts typically provide mechanisms for determining and revising rent. They
outline factors to be considered, such as the area of the property, amenities, location, and prevailing market
rates. Rent may be fixed by mutual agreement between the landlord and tenant or may be determined by Rent
Control Authorities or Rent Tribunals.

4. Security Deposit: Rent legislation in India often addresses the issue of security deposits. It may regulate the
maximum amount of security deposit that can be collected by the landlord, specify the conditions for its refund,
and define penalties for non-compliance.

5. Eviction: Rent Control Acts prescribe specific grounds and procedures for evicting tenants. The grounds for
eviction may include non-payment of rent, subletting without permission, unauthorized use, breach of terms, or
bona fide need of the property by the landlord. The Acts usually require landlords to provide notice and seek
permission from Rent Control Authorities or Rent Tribunals for eviction.

6. Rent Control Authorities/Tribunals: Rent Control Acts establish Rent Control Authorities or Rent Tribunals at the
state or district level to adjudicate rent-related disputes. These authorities have the power to determine rents,
hear eviction cases, and resolve other rent-related matters. The procedure for filing and adjudicating cases
before these authorities is governed by the respective state legislation.

7. Rent Agreement: Rent legislation in India emphasizes the importance of having a written rent agreement
between the landlord and tenant. The agreement should clearly state the terms and conditions of the tenancy,
including rent, duration, notice periods, and other relevant provisions. It is advisable for landlords and tenants
to enter into a legally binding rent agreement to protect their respective rights and interests.

8. Dispute Resolution: Rent Control Acts provide mechanisms for resolving disputes between landlords and
tenants. Parties can approach Rent Control Authorities or Rent Tribunals to seek redressal for issues such as rent
determination, eviction, non-compliance with tenancy terms, or illegal rent increases.

It is important to note that the specific provisions of rent legislation can vary from state to state in India. Therefore, it is
crucial to refer to the Rent Control Act of the particular state where the rental property is located for comprehensive
and accurate information regarding the rights and obligations of landlords and tenants in that jurisdiction.

For precise guidance and advice on rent legislation in India, it is advisable to consult legal professionals who specialize in
property and tenancy laws, as they can provide guidance tailored to the specific state and circumstances of the rental
property.
Landlords
The lessor/landlord must be competent to contract,that is they must be of the age of majority and possess a sound
mind, at the time of granting the lease. A minor cannot grant lease since he is incompetent to contract. But his guardian
of property may grant such lease, without the court’s permission, for a period not exceeding five years or lasting for
more than one year after the minor attains majority. 
A lessor must also have the right to transfer the possession of the property to the tenant. His authority to effect the
lease cannot be questionable. Such ‘authority’ either stems from the ownership of the property, or from having the
possession of the property. Since a lease is only the transfer of the possession of a property, thus it is not required that
the lessor be the owner of the property, a lessee may also authorise a lease in favour of another person subject to the
provision that such title must not extend beyond such person’s own possession. A subsequent lease granted by a lessee
is known as a sub-lease, or derivative lease. 

Tenants
In case of lease, the lessee/tenant must also be competent to contract as it contemplates agreement to a liability of
payment of the consideration on part of the tenant. Thus, a minor or a person of an unsound mind cannot be tenants. A
juristic person such as a company, or a registered firm may also be the lessee, but an unregistered firm, not being a
juristic person, is not competent to be a lessee. Where a firm is a tenant, and a partner executes the lease deed on its
behalf, the lease continues to exist even after retirement of the partner and there is no subletting by the partner to the
firm, the firm continues to be the lessee, it was held in the case of Raunak Ram And Ors. vs Pishori Singh And Ors.
Rights And Liabilities Of The Landlord
 All material defects must be disclosed by the owner. Any latent defect which may not be discovered in the
natural course of time must be disclosed by the owner of the property.
 The owner must make sure to put the tenant in possession of the property.
 The owner must not neglect to make necessary repairs on the property. If the owner fails to make the necessary
repairs, the tenant can do the same and deduct the expense of repairs from the rent or recover it from the
owner of the property.
 The owner must not neglect to create any such payment which he or she is bound to make. And such payment
is recoverable from the tenant or against the property even if the payment is not created by the landlord. 
 The landlord has the right to collect or recover rent from the tenant according to the deed of lease.
 The landlord has the right to evict the tenant in case of any breach of the lease deed by the tenant.
 The landlord has the right to retain back his possession on termination of the lease period according to the
agreement.
 The landlord has the right of compensation from the tenant if the tenant does not vacate the premises after the
termination of the lease period.
 The landlord or any of his agents must intimate the tenant prior to their arrival.
 The landlord may also seek the permission of the tenant for building any structure or carrying out any necessary
repair or improvement on the leased premise.
Rights of Tenant
 In case of any accession, that is, any alluvion for the time being force, is made then such accession shall be taken
under the lease.
 If any destruction or damage has been caused on the property due to fire or flood, war or violent act of mob or
any other means which makes the property unfit for residing, then the lease becomes void at the option of the
tenant.
 Tenant has the right of deducting the expenses from the rent or recover them from the landlord which incurred
due to the repairs made by the tenant. This right arises if the landlord fails to make necessary repairs on
reasonable time even after sending notice.
 The tenant has the right of recovering from the landlord or deducting it from the interest of the rent if the
landlord fails to or avoids to make any such payment which he or she is bound to pay and such payment is
recoverable from the tenant or can be recovered against the property.
 In case the tenant leaves the property, he or she must ensure to remove all the things attached to such property
and hand over the property in the same state as he or she received it.
 The tenant along with their legal representatives have the right of collecting the crops that are planted, sown, or
grown by such tenant on the leased property if the duration of the lease has not been specified.
 The tenant can transfer the property by way of sub-lease or by a mortgage, provided prior permission has been
taken from the landlord. However, the tenant cannot avoid the liabilities arising out of the lease even after
transferring the property by way of sub-lease.
Liabilities Of Tenant
 The tenant shall pay rent to the landlord on due time.
 The tenant must maintain the property in proper condition which has been rented out to him or her.
 The tenant shall disclose any material fact to the landlord that arises on the property and is likely to increase the
value of the property and the landlord is not aware of the same. 
 The tenant must inform the landlord of any illegal encroachment or proceedings or interference on the
property.
 The property rented by the landlord shall not be used by the tenant for any other purpose other than which the
property is rented.
 Except for agricultural purposes, no fixture or structure can be taken off permanently from the property without
the consent of the landlord.
 It is the duty of the tenant to give possession of the property back to the landlord when the lease is terminated.
Grounds For Sending Legal Notice To Tenant For Vacating Premise
The reasons for sending a notice to the tenant by the landlord are described in the Premises and Tenancy Acts. The
Premises and Tenancy Acts vary from one state to another. However, the grounds on which a legal notice can be sent to
the tenant has been described in the Acts.  Following are some of the grounds for sending eviction notice to the tenant
for vacating the premise by the landlord.
 Non-payment of Rent to the landlord with ill intentions even after the expiry of 15 days.
 Subletting of property by the tenant without written consent or NOC from the landlord.
 When a property is used for purposes other than mentioned in the Agreement Clause, such as using the
property of the landlord for setting up a commercial business.
 An omission or act which causes loss of utility of value of the landlord’s property.
 When written consent is asked for by everyone due to causing a nuisance in the neighbourhood.
 Occupation of a premise by the tenant in another state or region of the country for more than 4 months.
 Any change made by the tenant in the nature of the property without the consent of the landlord or tenant
denying the title of the owner.
 Modification or alteration or temporary construction made on the landlord’s premises.
 Landlord needs the property for personal use or the purpose of his family.
 Landlord requires the property for making necessary repairs. And would let the tenant on the premises after
completing the repairs.
 For the purpose of demolishing the property and construction of another property.
For the above state reason, the landlord must consult a good lawyer for drafting proper legal notice for eviction of the
tenant. The landlord has the right of filing the eviction suit against the tenant if such tenant does not vacate the
premises within 30 days of the notice.
Procedure For Eviction Of Tenant In India
A rent agreement is required for filing a suit for eviction against the tenant in India. It becomes a difficult procedure for
proving that property is rented if no such agreement has been made. The following process must be followed after
grounds for eviction have been established by the landlord.
 Sending Notice for Vacating to the Tenant- The landlord is required to file a notice for eviction in the court
within whose jurisdiction the property rented is situated. The notice must specify the reason for eviction along
with the date and time within which the tenant is required to vacate the property. A reasonable time must be
given to the tenant for vacating the property by the landlord. 
 Filing suit for eviction – Generally, tenants vacate the property after receiving the notice for eviction from court.
However, even after receiving the eviction notice the tenant does not vacate the property or refuses to leave
the property, the landlord can file a suit for eviction against the tenant with the help of a lawyer. The suit for
eviction of the tenant is required to be filed in the civil court within the jurisdiction of the property.
 Final Eviction Notice- A final legal notice to evict the tenant is issued by the Court after hearing both the tenant
as well as landlord based on their arguments along with the evidence presented. On receiving the final eviction
notice the tenant is required to vacate the property.
Protection of Tenants Against Eviction
About 42% of the urban population of the world, which are roughly 150 million households, lives as tenant. The same holds
true even in India where, due to exorbitant rates of property especially in the metro cities, a majority of people live as
tenants. While living as a tenant can be really comfortable, there are times when once can face rental issues and other related
problems like getting an unwarranted eviction notice. However, Indian Laws has several provisions that protect the rights of a
tenant.

The right to be saved from eviction that is not justified or authorized and which is unreasonable is the most important right
available to a tenant. Each of the State’s in the country has their own State has laid down particular grounds in view of which
a landlord can evict a tenant. Eviction of a tenant on any ground other than the ones mentioned in the State Acts is not
considered to be sufficient for eviction. Further, the said State Acts additionally give the tenants the privilege to assurance for
a situation where the landlord powerfully evict the tenant for a reason not determined in the Act.

Landlord Filing Case For Eviction of False Grounds:

In numerous cases, it is seen that the landlord may file a notice of eviction on false grounds. For example, the landlord may
evade the receipt of rent for a month and then use the same fact of willfully failing to pay rent as a ground to evict the tenant.
However, in such cases also, the Rent Control Act can provide remedy to the tenant

Remedy Against False Cases:

The following steps can be taken for challenging the false eviction notice:

The tenant should approach the Rent Controller giving her/his reasons.
Once the tenant is summoned by the Court, he/she will be required to put forth her/his case with adequate evidence for
support. The following points can come in handy while accumulation of evidence:
Notice to Receive Rent: If the landlord fails to receive the rent deposited by the tenant, he/she should issue a notice in writing
that asks the landlord to specify a bank for depositing the rent within ten days of receiving the notice. The notice should
clearly mention the non-receipt of the rent on the part of the landlord and the option that one is exercising as a tenant. If the
bank details are received within ten days, the tenant should deposit the rent as soon as possible.

Money Order: If the landlord fails to reply to the above notice, the tenant must directly send the rent to the landlord via
Money Order. The Money Order coupons should be kept safely as proof of payment of rent. In the landlord receives the
Money Order, the tenant should continue the payment in the same mode.

Petition in Court: in the landlord refuses to accept the Money Order as well, the tenant should file a petition before the
appropriate court and get the court order to deposit future rents in the court
What Is Rent Control Act?
The central Rent Control Act was introduced to oversee letting out properties in rent and avoiding any kind of
exploitation on parts of tenants or property owners. While each state of this nation has its own Act, they hardly differ
from each other. It ensures that property owners or tenants are not exploiting each other’s rights in any way. 
As the 1948 act was extremely stringent and favourable towards tenants, the real estate industry has forced the
government to make some amendments. The 1992 amendments include introducing a new model to ensure a property
is not devalued. However, it is yet to take effect.
What Are the Features of the Rent Control Act?
To understand more about this law, the following salient features of the Rent Control Act will benefit you. 
 This law mainly sets the rules and regulations regarding property renting. 
 It ensures that fair and standardised rentals are established and that tenants are not charged
beyond their agreement. 
 Tenants can easily find rental accommodations based on the accepted standards according to this
law. 
 It protects tenants against unfair or forceful eviction by property owners. 
 The responsibilities and obligations of landlords are properly underlined in this law. 
 It also outlines tenant obligations while living within a rented property.
Rights of Tenants Under Rent Control Act
The Rent Control Act in India looks after the interests and rights of tenants when they move into a rented property.
Here are some of the rights they have under this law. 
 Right Against Unfair Eviction
According to the provisions of this law, a property owner cannot evict a tenant without sufficient cause. Its rules can be
different across states. While some require landlords to approach courts to evict a tenant, others indicate that tenants
cannot be evicted if they agree with the new regulations of their owner. 
 Right to Fair Rent 
This law states that the valuation of rent of a property depends on the overall value. While setting the rent, an owner
should keep it close to his or her property value and avoid charging an extraordinary amount from tenants. It should be
within the range of 8% to 10% of the property value, including construction costs and fixtures. Tenants can approach the
court if they feel the rent exceeds this value. 
 Right to Essential Services 
Every tenant should be able to enjoy basic essential services in a rented property. These include water supply,
sewerage, electricity, gas, septic tank, etc. A property owner should not withdraw the above-mentioned services even if
a tenant fails to pay rent. Withdrawal of these services violates the legal rights of tenants.
Rights of Property Owners and Landlords Under Rent Control Act
While the Rent Control Act 1948 might seem more favourable towards tenants, it will be wrong to presume that it is all
about tenants. Here are the rights of property owners and landlords that they get to enjoy. 
 Right to Evict 
The provisions of this law regarding an owner’s right to evict tenants might differ from one state to another. In some, an
owner can evict tenants for personal reasons, such as if they want the property. However, it might not be an acceptable
reason to evict tenants in other states. Here, an owner must approach the court and provide sufficient notice before
evicting tenants for personal reasons. 
 Right to Change Rent 
According to this law, landlords have the right to change the rent, being owners of their property. As there is no specific
law regarding an upper limit on the rent, landlords can constantly raise the rent as per their choice. Usually, it increases
annually by 5%-8%. However, the stipulated increment percentage should be a part of the legal agreement. 
 Right to Temporarily Repossess Property
A landlord has the right to temporarily repossess his or her property. It can be for improving the property’s quality or
modifying any part. However, such changes and modifications should not affect the agreement or tenancy of the
current tenant.
What Are the Exemptions of the Rent Control Act?
Now that you know what Rent Control Act is, you should know the areas where it does not apply. Here are the instances
that are exempted from this law. 
 If a property is let out to public limited or private limited companies, the case will be exempted
from this law. In this case, it should have a paid-up share capital of ₹ 1 crore or more.
 If properties are let out or sub-let to banks, public sector undertakings, or corporations that come
under state or central acts, this law will not apply to their activities. 
 This law will not apply to properties let out to international missions, foreign companies, or
international agencies. They do not follow the rules and regulations.
What Are the Steps to Rent Commercial Property in India?
If you plan to rent a commercial property to move in, you should follow the below steps to avoid missing any vital
activity. 
Step 1: Validate Title Ownership 
Start with ensuring that you have all the details regarding property ownership and access to the title deed. It should
authenticate the rent. Moreover, it would help if you considered more research to ensure that there is no sub-rent
associated with a property before moving in. 
Step 2: Verify the Title Deed and PoA
If you are renting a property building under construction, you must verify the commencement certificate and title deed
from the relevant authorities. Moreover, you should confirm if there is any Power of Attorney associated with the case
of indirect rent. 
Step 3: Create a Rental Agreement
Make sure there is a proper legal renting agreement based on mutual decisions. You must ensure that there are specific
inclusions of the rent, lease agreement and other requirements that your owner previously agreed to avoid future legal
complications. 
Step 4: Verify the Financial Background
It is advisable to verify the attributes like income tax and mortgage backgrounds of a property. You should check for any
illegal proceedings or pending disputes surrounding a property. It will help you avoid associating with any disputed
property.
Step 5: Check the Validity of Your Rental Agreement
A rental agreement must include information like the dates, location, rental and deposit amount, terms of lease,
payment intervals, name and details of parties involved, etc. It can also include other clauses. 
As you can see, the Rent Control Act is essential for tenants and property owners. It details the rules and regulations
regarding renting property across India. If you know these rules while renting or letting out your property, you are less
likely to face legal interruptions.
Landlord Legal Rights
While we talk a lot about the rights of a tenant and how to safeguard them, there is other side of the transaction, too. A
landlord. Under the rental laws in India, there are rights that safeguard the interests of a landlord, too.

The Rent Control Act is one important act passed by the Government of India in 1948, post which several states
like Delhi, Maharashtra and Karnataka have undertaken modifications to the same. The act, however, seen as pro-
tenant, also, talks about the protection of rights of landlords. Recently, various ammendments have taken place
pertaining to new laws favouring landlords.  

Whether a first-time landlord or a seasoned renter, here's what you should know about the basic rights of landlords:

Right to evict a tenant

With the Rent Control Act applicable only to a tenancy of over 12 months, things seemed tougher for landlords to evict
tenants living in the property for years. The Draft Model Tenancy Act 2015, which has been in the news recently, aims to
make things easier for landlords as well as tenants by addressing untimely eviction, repossession issues as well as
mutually fixing and revising the rent. Laws now allow landlords the right to evict a tenant on the grounds of breach of
rental agreement; subletting rented premises or a part of it without landlord's permission; default in payment of rent
for specified period; misuse of the property; or conducting illegal activities in the rented premises. The landlord also has
a right to evict a tenant if he or she requires the building for his or her own occupation.

To prevent tenants from overstaying, landlords can also add a clause of hike in rent in the agreement, if the tenant does
not leave when the contract ends.

Right to temporary recovery of possession

A landlord is entitled to obtain possession of the property, in case there is a requirement for him to carry out repairs,
alterations or additions to the building, which cannot be carried out without the building being vacated, after which the
building will again be offered to the tenant. Or, if the rented accommodation has become unsafe for habitation and
cannot be refurbished without being vacated, the landlord is entitled to get possession of the property.

Right to increase the rent


Regulations allow landlords to have an upper hand as far as the collection of rent is concerned. Owners of residential or
commercial properties not only have a right to charge rent at market rates from their tenants for taking the
premises but also to raise the rent periodically. The Draft Model Tenancy Act is instrumental in creating a balance by
bringing the urban rented accommodations under the purview of the formal housing sector. The Act clearly specifies the
period, inheritance, rents payable as well as the obligations of landlord and tenants. In India, the applicable rate of rent
increase is around 10 per cent, every two years, for residential properties. But, mostly, there are laws governing this
too. For instance, the landlords in Delhi can increase rent only as per Section 6 & 8A of Delhi Rent Control Act.

To be advised of necessary repairs

It is the duty and the right of the landlord to respond to the requests for repairs in a reasonable amount of time. Minor
repairs of the property could be undertaken by the tenant. However, for all major repairs requiring reimbursement,
prior permission needs to be taken from the landlord in writing. So, a landlord has the right to be informed about
necessary repairs being made to his or her property. As per law, the landlord is under obligation to keep the property in
good and tenantable form. But the rent control act provides the provision for both parties to share the financial burden
of the repairs.
Fixation of fair rent refers to the process of determining a reasonable and justifiable rent for a property.
The aim is to strike a balance between the interests of the landlord and the tenant, ensuring that the rent charged is not
excessive or unfair. The specific procedures for the fixation of fair rent may vary depending on the jurisdiction and
applicable rent control laws. Here are some general points to consider regarding the fixation of fair rent:
1. Rent Control Laws: Rent control laws, regulations, or statutes in a particular jurisdiction often provide guidance
on the factors to be considered in determining fair rent. These laws may establish Rent Control Authorities, Rent
Tribunals, or other bodies responsible for overseeing the process of rent fixation.
2. Factors Considered: Various factors are typically taken into account when determining fair rent. These may
include the location and condition of the property, amenities provided, prevailing market rates in the area, costs
of maintenance and repairs, and the age of the property.
3. Comparables: In some cases, the Rent Control Authorities or Tribunals may consider comparable properties in
the same locality to assess the fair rent. This involves evaluating the rents charged for similar properties with
similar features and amenities.
4. Rental Market Trends: Rental market trends and the demand-supply dynamics in the locality can also influence
the determination of fair rent. Market rental rates and the prevailing rents for comparable properties can
provide a benchmark for assessing the reasonableness of the rent proposed by the landlord.
5. Tenant's Financial Capacity: The tenant's financial capacity to pay the rent may also be considered in the process
of rent fixation. Rent control laws often aim to protect tenants from excessive rent increases that may burden
their financial resources.
6. Rent Review: Rent control laws may provide for periodic rent reviews to ensure that the rent remains fair and in
line with prevailing market conditions. Rent Control Authorities or Tribunals may conduct periodic assessments
to determine whether the existing rent needs to be adjusted.
7. Notice and Hearing: The process of fixing fair rent typically involves providing notice to both the landlord and
the tenant, giving them an opportunity to present their respective arguments and evidence. Rent Control
Authorities or Tribunals may conduct hearings where both parties can present their case and provide relevant
information.
8. Rent Fixation Orders: Once all the relevant factors have been considered, Rent Control Authorities or Tribunals
issue rent fixation orders specifying the fair rent to be charged. These orders are legally binding and should be
adhered to by both parties.
9. Appeal Process: Rent control laws often provide for an appeal process, allowing either the landlord or the
tenant to challenge the rent fixation order if they believe it to be unfair or erroneous. The appeals are usually
filed before higher judicial bodies, such as Rent Control Appellate Authorities or Rent Control Courts.
It is important to note that the specific procedures for the fixation of fair rent may vary depending on the jurisdiction
and the applicable rent control laws. Therefore, it is advisable to consult the relevant rent control legislation in your
specific jurisdiction for detailed information on the procedures, factors, and considerations involved in the fixation of
fair rent. Additionally, seeking legal advice from professionals experienced in rent control laws can provide valuable
guidance tailored to your specific situation.

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