How the Rent Control Act Safeguards the Interests of Tenants and Landlords
Posted: Apr 01, 2020
The Rent Control Act is one that every tenant and every landlord must know about.All activities related to tenancy-- a landlord letting out their home on rent, or a tenant occupying a rental home--fall under the ambit of the Rent Control Act. The purpose of the Rent Control Act is to close any loopholes between rental transactions and to settle any disputes that may arise between the two parties—licensor/landlord and licensee/tenant.
Every state in India has its own version of the Rent Control Act. For example, rental transactions in Delhi are governed by the ‘Rent Control Act 1958’, while those in Maharashtra are governed by ‘Rent Control Act 1999’. The idea behind the Rent Control Act is to provide both tenants and landlords with a sense of security, while also restricting the possibilities of unfair conduct and eviction of tenants by landlords.
The following are the main features of the Rent Control Act:
- The Rent Control Act imposes a set of laws applicable to landlords when it comes to renting out their property. This aids prospective tenants in identifying a suitable and secure rental accommodation.
- In order to prevent landlords from charging unfair or unreasonable rentals, the Act imposes fair and standardized ranges for rentals, above which the landlord cannot quote a rental fee.
- It safeguards the tenant against unfair eviction from the property and as well as from other acts of discrimination.
- It lays emphasis on the landlord’s responsibilities towards the tenant, in the context of the maintenance of the rented property.
- In addition to safeguarding the rights of the tenant, the Rent Control Act also clearly defines the rights of the landlord and their power over tenants who misuse the property or do not pay the rent on time.
The Rent Control Act—Safeguarding the Rights of the Tenant
The Rent Control Act serves the important purpose of safeguarding the tenant’s rights and interests in the event of an eviction. The Act has many provisions that have been designed to protect the interests of tenants who are being evicted or denied a service on the property, without a just or reasonable cause.
Additionally, the Act also states that it is the responsibility of the landlord to register the leave and license agreement. In case the landlord does not register the agreement with the tenant, the tenant’s contentions will prevail over the landlord’s in the event of a conflict or disagreement. The Act also makes it compulsory for the landlord to issue a written receipt upon every payment made by the tenant.The failure to provide a written receipt for the payment is a punishable offense. In the unlikely event of the tenant’s death, the written receipt must be issued in the name of a family member of the tenant.
The Rent Control Act—Safeguarding the Interests of the Landlord
The Act states thata landlord can recover the possession of their rented property under the circumstances that they require the premises for a bona fide purpose. The Act also states that in case the tenant has available an alternate accommodation, then the landlord can enforce their right to recover their rented property.
In case the rented property is an old or dilapidated condition, then the Act permits the landlord to recover the property for the purpose of reconstruction or renovation in keeping with the relevant laws pertaining to the same.
The Rent Control Act has many provisions to safeguard the interests of tenants and landlords. However, there are some instances when the Act is not applicable. The Rent Control Act does not cover any property that has been let or sub-let to banks, public sector undertakings, or any corporation established by or under any state or central act, or foreign missions, multinational companies, international agencies. The Act also does not apply to premises that have been let out to private limited and public limited companies with a share capital of over Rs. 1 crore.
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