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Know all about the Rent Act

Do you know what governs the rentals of your home or how the government prevents a tenant from forceful eviction? The Rent Act, passed by the government in 1948, is aimed at regulating the variegated norms of tenancy and land ownership. Here’s what you need to know about the Rent Act -

Implemented with the primary purpose of consolidating the law pertaining to property rental and eviction of tenant, the Rent Control Act ensured elimination of loopholes that lead to possibilities of deceit. The Act has further been implemented by the State governments with an intent to unify, consolidate and amend the existing law relating to control of rent and to further curb the exploitation of either of the parties due to rent or occupancy.

Features of the Rent Control Act:

The rent control laws are meant to provide for fixation of standard rent and permitted increase in the rentals every year. Some of the salient features of this Act are:

  • Several laws on the rent out of properties have been imposed under the Act to help the potential tenants in identifying a rental accommodation of acceptable standards
  • Fair and standardised rentals have been established, beyond which the tenants cannot be charged
  • The Act also provides for protection of the tenants against forceful or unfair eviction by their landlords
  • The landlord’s responsibilities and obligations towards the tenants have clearly been defined under the Act
  • Not only the landlord’s responsibilities, the Act also provides for their rights, with regards to tenants who do not fulfil their obligations at any point of time

How does the Rent Act safeguard the interests of the tenants?

Offering security to the tenants by restricting the landlord’s power to evict, the Rent Control Act is like a breath of fresh air to the former. Here are the provisions of the Act that safeguard the rights of the tenants:

  • Fixation of fair or standard rent
  • Providing protection against indiscriminate eviction
  • Specification of the duties of the landlord with respect to maintenance of the rented property
  • Formalisation of leave and license agreement
  • Identifying the right of occupancy of the legal heir, in case of the tenant’s demise

Is it only about the tenants?

No. Though the Act may majorly be seen as pro-tenant, it also has considerable provisions for the protection of the rights of the landlords. Some of these rights are mentioned as hereunder:

  • The right to evict the tenant on a personal or bonafide requirement
  • The right to temporarily recover the possession of the premises
  • The right to raise the rent periodically, as per the market rates
  • The right that can be enforced against the tenants who stand as defaulters in the payment of rent or misuse the premises of the landlord.

Exemptions of the Rent Control Act

Though the Rent Act is meant to protect the interests of the landlord and the tenants simultaneously, the provisions of the Act shall not apply to:

  • Any premises belonging to the Government or local authority, and
  • Any premises let or sub-let to banks, or any public sector undertakings, or corporations, international agencies, foreign missions, companies-private as well as public, having a paid up capital of Rs 1 crore or more
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