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Renting a House? 10 Laws that Every Tenant & Owner in India must Know

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In India, it is the Rent Control Act that governs rent control. This law is crucial in protecting the rights of the landlord as well as the tenant. Passed in 1948, the Rent Control Act is specific to states and may have certain minor differences.

Here are the ten laws mandated by the Housing and Urban Affairs Ministry

1. The Rent Deed:

The landlord and the tenant need to sign a written agreement. This can safeguard the interest of both parties. Keep in mind that it would not be legally bound if you enter an oral agreement only. If the other party offers a better deal, do not settle for anything less than a proper and appropriate rent deed.

2. Property Maintenance:

The maintenance of the property is a joint duty of both owner and the tenants. At the same time, tenants cannot bring a structural change to the building without the owner's permission. In the same way, the owner cannot renovate any corner of the house without the tenant's consent. Apart from this, the maintenance of the structure is carried out by both parties. If a tenant fails to do so, the money can be deducted from their security deposit. If the owner fails to do so, the tenant may deduct the amount from the rent.

3. Property Damage:

Tenants are obliged to maintain the home's originality as it was when they entered the house. In any situation, if any damage occurs, be it intentionally or unintentionally, the owner must be informed. Failing to do so might have consequences on the tenant. So, one must inform as early as possible.

4. Essential Services:

As a tenant, you have the right to ask for essential services, which include electricity, water supply. The landlord is liable to provide these basics. The landlord cannot withdraw these facilities even if the tenant has not paid the due rent.

5. No Entry without Permission:

Although the house belongs to the owner, once the tenants occupy it, the owner cannot enter the house without prior notice. An owner is bound to inform 24 hours before they visit the house, be it for any reason. Whether it is just a check, a visit for repair purposes, an owner must inform the family or the bachelor's living. Also, the standard time for visitation is between 7 am to 8 pm.

6. Uninhabitable Conditions:

If the maintenance charges of a house exceed 50% of the rent, the house will be considered "unhabitable". The tenants have the right to vacate the house with written notice of 15-days. If the need arises, help can be sought from the local Rent Authority.

7. Vacation by the Tenants:

Tenants are bound to pay the agreed rent money. However, if they fail to do so, the owner may ask tenants to vacate the house, and the tenants will be bound to do so.

8. Tenant's Death:

In case of tenant's death, the right of tenancy goes to their successor. They may be-

1. Spouse

2. Parents

3. Son

4. Unmarried daughter

5. Daughter in law (widow of their deceased son)

In order to have the right of tenancy, one must be living with the tenant before they die. If none of the successors mentioned above used to live with the deceased tenant, then there shall be no right to tenancy for any successor.

9. Rent :

The rent amount is decided between the owner and the tenant and both parties agree to it. In case the rent is revised, the owner is bound to inform the tenant three months before applying the new rental agreement. As per the agreement, the tenant is bound to pay the rent. The payable rent may differ from city to city and residence to residence.

10. Security Deposit:

Most landlords ask for a security deposit. As per the Draft Model Tenancy, the security deposit cannot be more than three times the monthly rent. But, it is recommended that you check with your specific state laws for the same. At the time of vacation of the property, the landlord has to return this deposit. This amount can be settled as the rent of the last month or any other agreed-upon expense.

Non-Applicability of the Rent Control Act:

Under the following circumstances, the RCA will not be applicable:

1. If the property is rented out to a company where the rent is above INR 1 crore

2. If the property is rented out to a public sector bank or corporation

3. If the property is rented out to an international company, agency or mission

Conclusion

Being conscious of your rights and duties is important. While you should know about your rights as a tenant or a landlord, you also must invest in property insurance. With the right kind of property insurance policy, you can safeguard your home and/ or building against almost all types of unforeseen damages.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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