20,Feb 2024
The Rent Control Act is the regulating legislation in India that controls rent and protects the rights of tenants and landlords. A formal agreement that details the rent, length of the lease, and other pertinent elements must be signed by the landlord and tenant by the Model Act. For residential properties, the maximum security deposit is two months' rent; for non-residential properties, it is six months' rent.
The legislature enacted a central Rent Control Act in 1948. It controls the guidelines for renting out a property and makes sure that neither the rights of the landlords nor the renters are violated. It should be mentioned that, while most state-level rent control acts are similar to one another, there are some little variations.
In certain places, the 1948 Act's excessive strictness and pro-tenant provisions have made it impossible for the real estate market to expand. Even after accounting for inflation and rising property values, the rent on certain rented houses has remained constant since 1948.
In an attempt to prevent the property from being devalued, the Central Government attempted to alter the Act in 1992 using a model that was suggested. Sadly, the sitting tenants rejected the changes, which is why they didn't go into effect.
Watch Now - Rent Control Laws - Governing the Rights and Duties of Building Owners and Tenants
The purpose of the Rent Control Act is to protect tenants as well as landlords and their assets. Some significant rights granted to the tenants under the Act are as follows:
Right against Unfair Eviction: The Act prohibits the landlord from evicting a tenant without a valid reason. States have relatively differing laws regarding evictions. In many places, a landlord needs to go to court and get an order before they may remove a tenant. If the renter is open to accepting rent adjustments, they may be unable to have their lease terminated in some states.
Fair Rent: When renting out a home, the landlord is not allowed to demand exorbitant sums of rent. A property's worth should be taken into consideration when valuing it for rental purposes. Tenants may file a request for relief with the court if they believe that the rent being demanded is excessive for the property's worth.
Essential Services: Tenants have a fundamental right to use utilities like power and water supplies. Even in cases when the tenant has neglected to pay rent on the same or separate property, the landlord is not entitled to terminate these services.
In a rental agreement, the property is always the point of interest, and it must be protected against undue exploitation. The following rights are granted to the landlord under the Rent Control Act:
Right to Evict: This right varies from state to state. This means that in some areas, a landlord has the right to remove a tenant for legitimate personal reasons, such as wishing to move in themselves. In Karnataka, a rationale like this cannot be used as justification for eviction. Most of the time, to evict a tenant, the landlord needs to go to court. Additionally, the landlord is required by law to give the renter enough notice before going to court.
Charge Rent: The landlord has the authority to impose rent on the renter because they are the property's owners. Since no statute specifically sets a maximum amount for rent, the landlord is free to raise rent amounts as much as he pleases. Thus, it would be wise to include the amount and terms of the increase in the rental agreement itself in such circumstances.
Temporary Repossession of Property: To make improvements, alter the property, or make other modifications, the landlord may temporarily reclaim the property. However, the tenant must not suffer any loss as a result of these property modifications or have his tenancy significantly affected.
For more informative videos, refer to the Lloyd Law College's official YouTube Channel.