Balance between landlord and tenant
Landlord Tenant relationship is very close relation as it is like two sides of a same coin. If landlord is a tail then tenant is the head and vice-versa. Landlord is a person who owns property and allows another person to use it for a fee. The person using the property is called a tenant. Relationship between Landlord & Tenant takes place when the owner actually has title to the property & he consents to occupancy of the premises. Tenant acknowledges that the owner has title to the property and a future interest in the property. Tenant receives a limited right to use the premises. The owner transfers possession and control of the premises to the tenant and a contract to rent exists between the parties. Landlord and tenant relationship also exists even in the absence of a written and signed rental agreement between owner of the property and the person living on property.
In India, there are two types of Tenancy Agreements one is Lease agreements which are covered by Rent Control Laws and Lease and License Agreement which are not. A Lease or Rental Agreement is covered by restrictive Rent Control Laws. The amount of rent that can be charged is based on a formula devised by the local executive, legislative or judicial government, as the case maybe. In India, Landlord & tenancy agreements are governed by various laws enacted by the Central Government of India and respective State governments. One of such law is RENTAL LAWS.
These laws govern the rental of commercial and residential property and are necessary to enforce individual civil rights of both landlord and tenant and prevention of any kind of deceit.
In India, there are two types of Tenancy Agreements one is Lease agreements which are covered by Rent Control Laws and Lease and License Agreement which are not. A Lease or Rental Agreement is covered by restrictive Rent Control Laws. The amount of rent that can be charged is based on a formula devised by the local executive, legislative or judicial government, as the case maybe. In India, Landlord & tenancy agreements are governed by various laws enacted by the Central Government of India and respective State governments. One of such law is RENTAL LAWS.
These laws govern the rental of commercial and residential property and are necessary to enforce individual civil rights of both landlord and tenant and prevention of any kind of deceit.
Prior to the Rent Control Legislation in this country, all the relations between landlords and tenants were governed by the Transfer of Property Act-1888. In the said Act, the nomenclatures were lessor and lessee. Under Section-108(m) of the T P Act, it was the responsibility of the tenant to keep the premises in as good condition, as it was at the time of letting.
For all those years, the relationship between landlords and tenants worked prior to coming into operation the Rent Control Legislation in this country, and the buildings were maintained by either the tenant, because of the obligation under the aforesaid Act, or as per the terms of the agreement by the landlords. Even today, in some parts of India, there is no Rent Control Legislation. As a general law, a covenant for "keeping the premises in good and tenantable repair included rebuilding the premises, if the building is destroyed by irresistible force such as flood, fire or earthquake, etc, or which became worn out and dilapidated due to age."
After the Delhi Rent Act 1958 came into force, Section-44 was introduced wherein the obligation to repair the building is imposed upon the landlord. However, since the rent was frozen at the rate of 1940s, it became uneconomical for the landlord to repair the building and therefore, the landlord started neglecting the maintenance of the building. Another reason was, the cost of repairs increased due to inflation and the value of the rupee depreciated, while the rent remains the same.
The rental laws in India need to be revised to protect the owner and his/her property from the tenant. Special areas of focus should be on terminating old tenancies, removing constraints on increase of rentals and empowering owners in the sense of being able to reclaim their properties without any court proceedings.
The market forces should be allowed to determine the rental amounts and the owner must have full protection for his/her property. This will go a long way in providing security to the landlord and also reduce the deposit amount required with the lease agreements.
If these laws are enacted and strictly enforced, there is every chance that more investors will want to enter the real estate market to utilize the rental fees as income. This is especially true for the commercial sector. The tax laws also need to be revised so that renting of properties becomes a financially viable option. Amendments in the Rent Acts of several states are a progressive move