There are separate and exclusive Acts for each sector in the Indian real
estate which has been framed and governed by the central and state government of
India. So, when the rents of the real estate property are concerned, the Act
enforced is the Rental Law.
This law has the scope to all commercial and residential property’s rent and
it solves all the tenant-landlord disputes by enacting civil laws. These Rent
Laws are state laws. Each state has its laws relating to their rental property
and agreements. For instance, the Rent Control Act, 1999 in Maharashtra, the
Rent Control Act in the year 1958, Delhi, Tamil Nadu Buildings lease and Rent
Control Act,1960. These Acts are enacted primarily to solve the disputes between
two parties involved in the rental agreement.
There are 2 types of rental contracts mostly preferred by the landlords, the
rental agreements, and license agreement. This article speaks about the
introduction to the Rent Laws, methods used primarily, and the utilities
provided in the first stage. Then the Rent Control Act along with its new
modifications will be discussed. The last portion of elaborately comprises an
integral part of this Act and the conclusion.
If we have to rent a property, a legally bound contract between the landlord and
tenant will be drafted. The contract will have the rules and responsibilities,
according to which both parties have to bind. Some of the basic ingredients that
are usually given in the contract document are the rent amount, security deposit
amount, date of deposition of the security amount, and other legal conditions.
If any of the parties violate the bound rules, then the aggrieved party can
apply for the relief in the Civil Court. Many people have common and general
knowledge about rental pacts. The objects in the rental agreement can be
negotiated with the landlord. The most basic objectives that will be needed is
the tenant will be asked to pay an advance amount to the landlord to avoid
fraudulent acts which will be returned during the end the period of the lease
and the amount will be returned to the tenant if the property is left behind
with good condition
And both parties have to be notified before vacating the property. These
are the basic information that everybody knew relating to the rental of the
property. But there are further information and notifications regarding the
rental pacts in India.
As seen earlier, there are two types of rental pacts. The rental agreements and
the license agreement.
- Rental contracts that are over 12 months are considered to be the rental
agreements. This type has to stand by severe rent control laws that are
mostly in favor of the tenants. The Rental Control Laws at this time prevent
the landlords from overpricing the tenants and protect the tenants from
unexpected or prejudicial eviction. Also, the right to ownership of the
property will be transferred from the landlords to the tenants in case of a
lease agreement, making it more solid for the landlord to vacate a tenant.
Hence, this is not a type that Landlords prefer.
- Another type of agreement is the license or leave the agreement. the
Leave and license agreements on the other side are limited to a period of 11
months, with an option of renewal of the agreement at the termination of the
contract. As a rental agreement that is 11 months long is just a license for
the tenant to occupy the premises for a short duration, Rent Control Laws
necessarily need not to be applied. Further, rental contracts that are 11
months long allow the landlord more actions to take in case of eviction of
the tenant from the property. Hence, most landlords prefer to enter into a
rental agreement that is 11 months long, to be on the safer side, with an
option to renew at the end of the agreement period.
The contract should contain the details of the provided utilities. The
electricity expenses if included with the rent then the meter cards should be
provided to the tenant, or if the tenant itself has to pay them, then such
details must be provided. The same applies to the water connection and the
amount can be determined by the source of water supply given to the
accommodation. The gas connection has to be provided by the landlord. The other
non-mandatory supplies like the internet, phone connection as so should be done
by the tenant.
The Rent Control Act:
Rent Control Act was a method by the Government of India to eradicate the abuse
of tenants by landlords. Rent legislature tends in providing fair rents to the
landlords and protection of tenants against eviction. But the tenants are paying
fixed rates as rents since 1947. The Rent Control Act has led to several
adversative situations like deteriorating speculation in rental housing,
Withdrawal of already existing housing stock from the rental market, festering
municipal property tax revenue.
This Rent Control Act along with the security of
tenure has not given any motivation or encouragement to the owner of the house
for renovation purposes due to which most of the property has a not properly
maintained look. Revocation of the Rent Control Act would lead to structural
affluent and it will boom the growing need for the housing and other property
which may lead to the flourishment of employment opportunities. The prime
locations in the city will be used leading towards betterment which results in
Introduction of the Model Act:
In 1992, all the state has circulated a proposal of model rent control
legislation by the Central Government. This model act prescribed some of the
modifications in the already existing provisions regarding the inheritance of
tenancy and mentioned about their rent limit beyond which this act could not be
applied. This act was not very famous because it failed the introduction. Even
the New Delhi Rent Control Act that was passed in the year 1997 was based on
This was a failure because the traders were the sitting tenants who
resisted this act. All the new Rent Control Acts introduced in various states of
India has the requirements for the disagreement among the landlords and tenants.
Each of the State Rent Act provides for fixation of Standard Rent as well
announcement for ownership and necessities that lay down the gratification of
Rental Agreement is an essential part of Rental Law:
Rent or lease of any property which may be residential or commercial property in
India is subject to strict Indian laws. A mutual contract on the terms and
conditions of the rented property by the landlord and the tenant is required. In
the present times, rental of commercial space in India as contrasting to
retaining commercial real estate is turning out to be an excellent move.
are no standard lease agreements or contracts and there are very little
tenant-friendly laws in the commercial leases subject because of which the legal
advice becomes necessary. Negotiating informal decisions and finding the best
deals on a commercial lease can be done effectively with the help of a lawyer.
The local ordinances and researching zoning laws along with elaborating about
the present market conditions and customs of the local real estate can be
consulted by a lawyer.
The rental agreement explains the relationship between the tenant and the
landlord. This is a legal binding upon the parties involved. In brief, this may
have the conditions and obligations relating to the issue. If any changes are
made, then it has to be notified in writing.
The rental agreement is a proper
legal form that has to be maintained by the sign, date, and the completed form
by both the tenant and landlord. There are legal forms for all the rental
properties. For rent, lease, and management of residential rental properties.
Both the properties will be involved and will access the document once it is
The landlord should get the agreement registered. the the owner should provide
the tenant a duplicate copy of the rental agreement, failing that the tenant is
not indebted to pay rent till the tenant receives a duplicate of the rental
For a lease agreement, the terms of the leaseholder (tenant) and also the lease
giver (landlord) once they enter into a lease agreement would come with terms
just like the period of the lease, deposit sum, and scheduled rentals. The lease
giver or the owner ought to make sure the premises come within the right form in
- There has been no damage to the covering, plumbing, flooring, or
electrification and therefore the premises are within the proper condition.
- No major changes have been incorporated within the premises. If the
leaseholder has created some changes, that are not acceptable to the lease
giver, the latter could raise him to undo the changes.
- All the electricity and telephone charges have been taken care of until
the required date by the lessee or tenant at the time of recovery.
- In the case of leasing of equipped premises, the condition of the
furnishings is the incorrect condition.
On satisfactory fulfillment of these aspects, the lease giver ought to provide
the refund of the protection deposit (if given) to the tenant providing vacant
and peaceful possession of the premises.
In an occupancy Agreement, there is a transmission of interest and it creates
the non-eviction of the tenant by the owner excepting on the grounds of eviction
mentioned under the Rent Act.
Under the Leave and License Agreement transfer of interest takes place on
permission and also the same will be terminated as per the terms of the
The possession will be demanded back from the licensee. The label to
the agreement may well be Leave & License or tenancy Agreement, however, it is
the intention of the party that counts. Documentation of the commercial lease is
additionally a very important Rental Law procedure.
If these laws are enacted and strictly implemented, there is each chance that
additional investors will need to enter the real estate market to utilize the
rental fees as financial gain. This is especially true for the commercial
sector. The tax laws also need to be studied so that renting of properties
becomes a monetarily feasible option. Amendments in the Rent Acts of numerous
states are advanced interchange.
Written By: Yazhini
Authentication No: AG023310447908-20-820