What is Rent Control Act: Rental Agreement, tenant and landlord's rights

In India, the law on rent control and protection of the rights of homeowners and tenants is governed by the Rent Control Act.

What is the Rental Price Regulation Law?
What is a Rental Agreement?
What Rights do Tenants Have?
What Rights do Owners Have?
Inapplicability of the Rent Control Act

1. What is the Rental Price Regulation Law?

In 1948, the legislature passed the Central Rent Control Act, which stipulated the rules for renting real estate and ensured that the rights of landlords and tenants could not be exercised by others. The state has its own tenancy laws, although they are similar in many ways but slightly different. Due to the extremely strict and visible laws of 1948, the real estate market is difficult to grow in certain areas. These tenants have been paying the same rent since 1948 despite inflation and rising real estate values. In 1992, the central government tried to amend the law on the proposed model to ensure that the property would not be written off. , The tenants present objected to the change, so it did not take effect.

2. What is a Rental Agreement?

In India, rental or lease of real estate for residential or commercial purposes is subject to various rules and regulations, such as:-The law requires both parties to sign a written agreement detailing all terms and conditions. In this case, a contract without a clear written form will not be established. -Any changes, regardless of the type of correction, must also be made in writing. -The contract must be dated and signed by both parties (ie, the owner and tenant). The contract must be registered with a seal. Without a valid lease agreement, the rights and obligations of landlords and tenants cannot be enforced or protected by law. Therefore, it is always recommended to ask for help. Ask a lawyer when signing this type of contract, as this will bring a lot of difficulties, especially for commercial leases.

3. What Rights do Tenants Have?

The rent law is not only to protect homeowners and their property, but also to protect tenants. The law grants tenants the following important rights:

• The right to oppose unfair eviction: According to the law, the landlord cannot terminate the tenant without a valid reason or reason. Deportation rules vary from state to state. In some states, in order to terminate a tenant, the landlord must appear in court on behalf of the tenant and obtain an injunction. It is stipulated that if the tenant is willing to accept the rent change, the tenant cannot be terminated.
• Fair rent: When renting an apartment, the landlord must not charge excessive rent. The valuation of a rental property should depend on whether the tenant believes that the required rent is too high relative to the value of the property. 8% And 10% of the property value, including all construction and furniture costs.
• Basic services: This is the basic right of tenants to use basic services such as water and electricity. Even if the tenant does not pay rent for the same property, the landlord cannot refuse these services. or others.

4. What Rights do Owners Have?

The interest in the lease is always the property, and the property must be protected from abuse. The Rent Price Act grants landlords the following rights:

• Right of eviction: The right of evacuation of tenants is also different because in some states, landlords call tenants for personal reasons and in good faith, for example, even if they are there. This is not an acceptable reason for deportation from Karnataka. Go to court to terminate the tenant. The law also requires landlords to promptly notify tenants before they appear in court.
• Charge rent: Since there is currently no statutory rent ceiling, the landlord can increase the rent at will, so in this case, negotiating rent is the most sensible solution. The increase in the lease itself and the conditions for the increase.Generally, rents increase regularly by 5-8% each year.
• Temporary return of property: The owner can temporarily take back the property to improve its condition, change the property or make changes to the property in any way. Such changes in ownership must not cause damage to the tenant or significantly impair their ownership of the property.

5. Inapplicability of the Rent Control Act

In some cases, if the property is rented out, the Rent Fixation Law does not apply.

They are:

• Properties leased to listed companies or listed companies with paid-up capital of Rs 1 crore or more.
• Public sector company, bank, or company organized under state or central law.
• Real estate is transferred to foreign companies, international missions or international institutions.