Renting a House? 10 Tenant & Owner Laws in India

Posted on: Mar 25, 2022 | 3 mins | Written by: HDFC ERGO Team

Renting a House? 10 Tenant & Owner Laws in India

Q: What is India's 12-year tenancy rule?

The 12-year tenancy rule in certain state laws gives tenants some rights if they have occupied a property for at least 12 years. This makes eviction of such tenants under normal conditions very difficult.

Q: Can an owner evict a tenant?

Yes, an owner can evict a tenant, but only through legal procedures under state rental laws. Grounds for eviction include rent default, breach of lease terms, or owner’s personal use of the property. Proper notice must be given, and legal action may be required.

Q: What is the rule of the Supreme Court for tenants?

According to the Supreme Court of India, landlords must follow due legal process for eviction. Tenants cannot be forcibly dispossessed without a court order, and courts generally favor tenants in eviction and rent-related disputes.

Q: What is the lock-in period in a rental agreement?

The lock-in period in a rental agreement is a fixed duration during which neither the landlord nor the tenant can terminate the agreement. It ensures stability for both parties. Breaking the agreement during this time may lead to penalties.

Q: What happens if a tenant refuses to move out?

If a tenant refuses to move out after receiving an eviction notice, the landlord must approach the court. Only through legal proceedings can the tenant be evicted, and the landlord must prove valid grounds for eviction.

Q: What are the rights of tenants after 10 years in India?

Tenants do not gain ownership rights after staying for 10 or even 30 years. Their rights are limited to staying in the property as per the rental agreement. Ownership remains with the landlord.

Rent laws every tenant and owner should know

Renting a property in India requires a thorough understanding of the rules and regulations. As a tenant, you must obtain a written agreement from your landlord outlining the terms and conditions of the tenancy. The agreement must be on a valid stamp paper and should be registered if the period exceeds 11 months. Having property insurance ensures financial protection for the property against any unforeseen circumstances.

If there is no rental agreement, neither tenants nor owners can be protected by law. The government introduced the Rent Control Act in India to monitor the relationship between tenants and landlords, ensuring fair treatment for both. It protects the rights of the tenants, preventing unfair eviction, overcharging, and more. It is crucial to be aware of the rights of the tenants and owners before you rent a property.

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

The Housing and Urban Affairs Ministry ensures that the tenants and owners follow specific guidelines to ensure the security of the property. Before house renting, please note the following housing laws that you must be aware of.

1. The Rent Deed:

The landlord and the tenant need to sign a written agreement. This can safeguard the interests 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 the 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 at the beginning of their house renting period. In any situation, if any damage occurs, be it intentionally or unintentionally, the owner must be informed. Failing to do so might have consequences for 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 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 a 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 have been 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. When you vacate 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.

As a tenant, you must comply with all these rules to ensure that you don't face any damage. You may obtain property insurance for your rented property to provide financial protection against accidental damage.

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 home insurance. With the right kind of insurance policy for your house, you can safeguard your home and/ or building against almost all types of unforeseen damages.

FAQs

1. What are the rental laws in India?

In India, every state has its own rental laws that govern the rights and responsibilities of landlords and tenants. Thus, special features include rent control and eviction procedures, regulations on security deposits, and obligations regarding property maintenance. The law protects tenants from arbitrary evictions and ensures fair rental practices.

2. What is India's 12-year tenancy rule?

The 12-year tenant rule relates to the provision in certain state laws that entitles tenants after occupying any property for at least 12 years to some rights. With this provision, the possibility of eviction of such tenants under normal conditions becomes quite difficult.

3. Can an owner evict a tenant?

Yes, an owner can evict a tenant, but he should do it according to the legal procedures laid down in his state laws on rentals. The lawful ground for eviction can be rent default cases, breach of lease agreement, or the requirement of the property for personal purposes. Prior notice must be given to the Section 80 tenants, and legal action may be required if there are failings in evictions.

4. What is the rule of the Supreme Court for tenants?

Protecting the tenants under various judgments regarding them includes the rules provided by the Supreme Court of India, which state that a landlord should follow due process in such cases. Therefore, tenants need not be forcibly dispossessed of the premises without a court order, and normally, the courts favour tenants in removal & rent-related issues

5. What is the lock-in period in a rental agreement?

The lock-in period in a rental agreement refers to the specified term within which neither the landlord nor the tenant can rescind the agreement. The duration for this lock-in period usually appears in the rent contract as a clause and ensures stability on both sides. Breaking the agreement during this time can lead to penalties.

6. What happens if a tenant refuses to move out?

The landlord cannot defy the court even if the tenant refuses to move out after such a period or a notice of eviction has been given. The landlord, thus, has no other option but to initiate proceedings to get the tenant evicted. Such an action would be to institute the case in the competent court. The landlord would then have to prove his case for eviction before the court.

7. What are the rights of tenants after 10 years in India?

Tenants do not acquire any exclusive rights, such as property ownership, after renting the property for 30 years. However, they only have the right to stay in the specific property as per the rental agreement. You can review the terms and conditions of the rental agreement before finalising it.

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

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