Rights of landlords in India

Renting a property is the new norm in today's time. We are yet, renting come up with certain challenges. It can be afflicted with issues, mainly if there is an absence of the rent agreement and other legal documents. We often acknowledge the rights of tenants and even protest for them, but little do we talk about the rights of landlords. They are also sometimes deceived by tenants and require legal attention.

The state has developed legal rights for landlords in India by giving the rental control decree. There are several rights in favor of the landlords that maintain their welfare. The landlord invests his hard-earned money in the property, yet his side is neglected in rental disputes.

A tenant has the right to stay in the house as long as they pay 0.1 % - 0.3 % of the total valuation of the property each month. Now, this doesn't sound fair. In most cases, tenants usually give 1% to 3% of the Rent annually.

In this article, we will discuss the landlord's rights in India. So, ensure to read this article till the end to get absolute clarity.

Rights of the landlord in India

While discussing rental rights, tenants' rights are often prioritized over the landlord's. However, the Rent Control act protects the rights of both tenant and landlord. The following are the rights of landlords in India:

Right of eviction

The landlord has the right to expel the tenant he considers unstable. Yet, along with the Rent Control Act. But as this applies to tenants of over 12 months, the property owner faced numerous issues evicting tenants during the covid crisis.

The draft of Act 2020 strived to fix cases, including-

• Untimely exile of tenants
• Changes in Rent with mutual agreement
• Cases of repossession

Listed below are some reasons why a landlord can evict a tenant.

• Renting a part of the property to someone else without the permission of the owner (landlord).
• If the tenant isn't able to pay the full Rent.
• Any Illegal activity is going on in the rented house.
• In the case of a break in the contract or agreement.
• If the landlord needs the property for business purposes. 

Thus, the property owner has the right to send a legal notice to the tenant to vacate the premises, if they find the tenant abolished the rules stated above. Along with that, the landlord can add a clause while making the agreement stating that there can be an increase in Rent if the tenant doesn't leave the house.

You Might Be intrested in: How To Evict A Tenant In India legally?

Right to increase the Rent

As per the Rent Control Act, the property owner is given the benefits while collecting the Rent. Along with the right to charge the Rent in compliance with market conditions, the landlord can also hike the Rent annually or at a fixed interval. It is made to give a balance to the rental market. The Act addresses vital factors, including estate, payment of Rent, due monthly payment, and the duties of both (landlord and tenant).

The landlord doesn't have the right to increase the Rent during the rental period, and they have to give three months' advance notice about the rental increment.

In India, the legal growth rate of residential properties is about 10% every two years. Regardless, the value of rent increment may vary from state to state.

Right to advise for the repairs

It is the duty and responsibility of the landlord to keep the premises in a rentable form. The landlord ensures the right to get the repairs and to be told of the uncertain works. The tenant can do the small repairs on his own. Yet, all refunds, initial approvals, and so on should be received from the owner in written form.

The Rent Control Act requires that the property owner and the tenant share the expenses of repairs between them.

Right to temporarily possess the property

The property owner is entitled to evict the tenant for repair and maintenance works. If the property owner feels it is essential to make the repairs, any changes, construction, and anything else without making the tenant exit, he has the right to ask the tenant to leave. The property will be rented again to that tenant after the completion of the repairs.

In these cases, a landlord must give the tenant such notice in advance. And in the situation when repairs have to be done instantly. If the landlord has no time to send the notice, he must compensate the tenant with suitable compensation for the inconvenience caused. The landlord can also give the alternative place to reside until the property becomes renovated or repaired.

Apart from that, there are some other rights that the landlord has, that includes:

• The right to check the tenant's background such as work status, salary credentials, and other relevant facts.
• Right to reserve some amount as a security deposit to manage the losses caused by the tenant. The tenant will get a refund if no loss occurs during that period.
• The landlord has the right to choose the person with whom he wants to reside as a tenant.
• The landlord has the right to decide the date of the payment. It is usually the first of every month. 

In India, some landlords believe powers beyond the normal course of belief. Yet, that is dangerous to their case as the tenants can opt to live with a property owner who gives a more tenant-friendly and impartial contract.

A landlord must guarantee that the rented property is "livable" (worth living) and tenant friendly. A well-framed contract (Rent agreement) and a basic understanding of the legal rights of landlords will help the landlord avoid legal troubles and any other problems caused by the tenants.

Conclusion

In India, some landlords do exert power arrogantly, but this may cost them in the long run because the tenants would choose to live with a landlord that offers a lease that may be tenant-friendly. Japan and Vietnam have especially "Pro-Landlord" lawful plans. India is stated to be more "Tenant-Friendly" or "Unbiased." Also, it's vital to recognize your rights as a landlord that helps you to avoid future Landlord and Tenants Disputes.

If you have any queries or are stuck in a place and need legal assistance, feel free to contact us. Our experienced lawyers for landlord and tenant cases will help you by giving you the best possible solutions. You can call us at +919284293610 or email us at [email protected].

FAQ

What is the expected increase in Rent every year?

Landlords in India can raise the rent amount by 10% after the expiry of the lease period. Yet, the change or increment in Rent is usually in the landlord's hands. The tenant can bargain the rate while signing the agreement paper.

Does a landlord have the right to increase the Rent forcefully?

The landlord has no right, and they can not force the tenant to pay more Rent before the expiry of the lease period. The increment will only be allowed if both (landlord and tenant) agree during the signing of the rent agreement and document the same in the rental contract.

How many times can a landlord increase the Rent?

The Rent can be increased once a year but only when both parties agree to improve it.

Does a tenant have the right to force the tenant to leave their house?

The rent control act safeguards not only the right of the landlord but also the rights of tenants. Rent control act gives the right to tenant Against Unfair Eviction: A landlord can't remove/expel a tenant without any notice.

What are the documents needed for filing a case of eviction

The following list of documents required for filing a case of eviction:

• Rent Agreement (tenant and landlord).
• Legal Notice photo-copy, which is already shared with the tenant
• Title and Sale deed or other legal papers prove the landlord's ownership of the respected property.
• Proof of document that shows the misconduct that happened by the tenant.
• Other essential documents to that property

Can the landlord end the rent agreement early?

Yes, a landlord can end the rent agreement early. But for that, he must give a prior notice (stating the reason for the end of that agreement). Due to the risk of losing their security deposit and finding another place in an emergency, tenants must get compensation in case of an invalid clause.

Author Bio: Adv. Shreya Srivastava has been practicing at the Hon’ble Supreme Court of India and other forums in Delhi NCR. She has an experience of over 5 years in active litigation. As a young professional, she thoroughly enjoys exploring the diverse fields of law and throughout her career, she has challenged herself to appear and assist in a wide range of cases, including matters relating to Copyright Law, Service Law, Labour Law, Property Law, Arbitration, Environmental Law and Criminal Law with equal zeal and curiosity. Her academic journey and professional experiences have inculcated a solid foundation of legal principles but also the ability to quickly work out the requirements of each case. She is capable of multitasking and effectively communicating with clients. She strongly believes that apart from her strong work ethic, her patience and ability to thoroughly read and understand lengthy documents is her strength which sets her apart.