Landlord / Tenant Issuses

In 1948, the legislature passed a Central Rent Control Act to regulate the rules of renting out a property and to ensure that neither the landlords nor the tenants’ rights were taken advantage of. Currently, each state has its own Rent Control Act, with minor variations, but mainly similar. The Act, being very strict and pro-tenant, has made it difficult for the real estate market to grow in some areas. 

In some properties, the rent since 1948 has stayed the same, despite inflation and increased property values. In 1992, the Central Government tried to amend the Act with a proposed model to avoid property devaluation. Unfortunately, the tenants did not accept the changes and thus failed to take effect. 

Under the law, a written agreement between the landlord and the tenant, including all the terms and conditions of tenancy, must be put in place. Regardless of type, any modifications should also be in writing and dated and signed by both parties. Additionally, the agreement must be stamped and registered. With a valid rental agreement, the rights of the landlord and the tenant are enforceable by law. 

The Rent Control Act is designed to protect both the landlord and the tenant. The tenant has the right not to be unfairly evicted, to pay fair rent based on the property’s value, and to access essential services such as water and electricity. The landlord has the right to charge rent, repossess the property temporarily for improvement, and to evict the tenant for specific reasons.

The Rent Control Act does not apply to specific property types, such as those let out to private and public limited companies with a paid-up share capital of Rs 1 crore or above. It is also not applicable for property let out to foreign companies, international missions, or international agencies. In India, leasing commercial property requires knowledge of the relevant laws and the right questions to ask. The title ownership must be validated, the sanctioned plans and power of attorney verified, the appropriate renting agreement signed, and the income tax and mortgage checked. A background check of the property agent should be done, and the validity of the rent agreement should be confirmed. 

Documents to be submitted are 

• Aadhar card or the receipt received any government-issued ID proof
• Original passport, if not Indian
• Power of Attorney should be presented if the ID is demonstrating another person for the registration
• Proof of ownership
• Government approvals 
• Two passport-size photographs.
• Get the Commercial rental agreement printed on the stamp paper of the recommended value.

If its a Commercial Rental Agreement, then it must be printed on the stamp paper of the recommended value and should include the following:

• The commencement and termination dates.
• The location of the property.
• The rental amount and deposit information.
• Payment intervals.
• Terms of lease renewal.
• The names and signatures of all parties involved.

The document must be provided to all parties, signed by the lessor and lessee, and registered if the rental period exceeds 11 months.

At Icon Legal Services, we recognize the importance of providing comprehensive legal services to landlords and tenants. Our team of experienced attorneys can assist with lease agreement drafting and review, eviction proceedings, and other legal issues that may arise during a tenancy. If you are a landlord or tenant in need of legal assistance, contact Icon Legal Services today to learn more.