Renting Woes: What are our Rights and Responsibilities as a Tenant?

Being a tenant comes with both rights and responsibilities that are governed by legal frameworks and agreements. Understanding these rights ensures fair treatment while fulfilling responsibilities helps maintain a harmonious landlord-tenant relationship.

What is the cost of having access to a place temporarily without buying it?

This is where 'Rent' comes into the picture. Rent is the recurrent payment given by a tenant for an entitlement to inhabit and use the property of the landlord. This concept, created by Section 194-I of the Income Tax Act 1961 is more comprehensive than layman’s understanding. It includes not just payments for property or structures (residential or commercial), but also furnishings, fixtures, and any linked property, irrespective of whether the owner, owns the property. This legislative definition guarantees that all these settlements adhere to tax legislation. Rent is majorly agreed upon in rental and lease agreements and can differ based on aspects like location, facilities, size of the property, etc.

Who is the Tenant?

A tenant refers to a person who has a lease or leasing contract for a piece of property. Tenants pay the landlord rent as a price for their entitlement to access and hold the property for the period indicated in the rental agreement. Section 2(n) of the Model Tenancy Act (2021) defines the term "tenant" precisely. Anyone who pays rent for a property, either personally or for someone else to the landlord under a rental contract, qualifies as a tenant under this statute. This covers sub-tenants and those who continue after their lease expires, whether before or after the Act went into force. However, it does not include someone facing a legitimate eviction decree.

Who is the Landlord?

A landlord is the owner or legal entity who owns a property and grants a tenant permission to use and inhabit it in return for rental payments. The property's owner is in charge of keeping the property in good condition, ensuring that it complies with legal standards, and adhering to the lease or rental contract. According to Section 2(a) of the Model Tenancy Act, 2021:

landlord, whether called owner or lessor or by another title, includes an individual who obtains or has the right to receive the rental fee of any property, on their account, if the space is let to a tenant.

Insights into the Rent Control Act

The legislature established a centralized Rent Control Act in the year 1948. It governs the regulations for renting out a home and guarantees that neither the landlords nor any renters' rights are abused by one another. It should be mentioned that each state now has a distinct Rent Control Act, which, while mostly identical, has a few small variances.

The property industry has struggled to thrive in some locations owing to the 1948 Act's rigorous and tenant-friendly provisions. A few houses rented out have continued to pay the same rent since 1948, despite hyperinflation and rising property values.

The Central Government in the year 1992 proposed to alter the Act using a suggested methodology to guarantee the property was not undervalued. nevertheless, the gathering of tenants resisted the adjustments, and they did not take effect.

What are the Rights of a Tenant?

The Act on Rent Control exists not just to safeguard landlords and their properties, but also for the safety of tenants. The legislation grants the renter a few fundamental rights, involving:

Protection From Unjust Evacuation: According to the statute, a property owner cannot remove the occupant without an adequate explanation or justification. The regulations of eviction vary somewhat from state to state. In certain states, the landlord must get a court order to evict a tenant. In certain areas, the tenant cannot be ousted if he or she agrees to any rent adjustments from time to time.

Equitable Rent: When renting out a residence, the landlord cannot ask for a higher rent payment. The rental cost of an asset is determined by its worth. If a tenant believes that the monthly fee requested is excessive in comparison to the worth of the assets, he or she can try recourse in the courts. 

Fundamental Amenities: It is the tenant's fundamental right to get necessities such as power and water. The landlord has no power to withhold these amenities, regardless of whether the renter is unable to pay rent on the same or separate properties.

What are the Rights of a Landlord?

Right of Eviction: The right to force out someone who rents varies from place to place. In certain places, the landlord might remove an individual for private and legitimate reasons, such as a desire to live therein themselves. In the state of Karnataka, such a rationale cannot be used to justify evictions.

In most circumstances, the owner must seek eviction of the tenant through the courts. The landlord is also required by law to provide sufficient warning to the tenants before seeking the court.

Right to receive rent: The owner of the residence has the authority to impose rent on a tenant regularly as agreed under the rental agreement. Because there currently is no legal regulation establishing a maximum rent, the owner of the property may continue to increase the rent charges as he sees fit.

In such instances, it is important to specify the value and circumstances surrounding the raise in the contract of rental itself. Rent is often hiked by 10 percent (for residential purposes) every year. In case of an increased amount of rent, the owner should provide a written notice concerning the increase of rent.

What are the important documents for a Commercial Rental Agreement?

• Adhaar Card or any authentic government-issued ID Proof.
  
• If not a citizen of India, then an Original Passport.
• Approvals of Government, if any.
• Original Title Deeds.
• Passport Size Photographs, etc.

What exactly is the Procedure for Using the Commercial Rental Agreement?

The entire agreement needs to be submitted to all parties, including the surety. Provided the length of the agreement, all parties must be permitted to take a while to read the agreement and fix errors if any.

• A Commercial Rental Agreement has to be printed either on a 'non-judicial stamp paper' or 'e-stamp paper,' which is available in all states. The selling price of the stamping material could be determined by the place where it operates and the 'period' of the Rent.
  
• The two parties must sign it to make it legally binding. Furthermore, each participant should have a photocopy of this Commercial Rent Agreement.
  
• If the duration of the rent is over eleven months, the agreement needs to be registered.
  

Responsibilities as a Tenant

As a tenant, you have several important responsibilities, including:

• Paying Rent on Time
• Maintaining the Property
  
• Keep the rental property clean and in good condition
  
• Report any necessary repairs to the landlord promptly
• Abide by all terms and conditions outlined in the lease agreement
  
• Respect any rules regarding pets, noise levels, and use of common areas

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