Landlord & Tenant Relationship in India
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.
Tenancy Agreements in India
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.
The basis of the legal relationship between a landlord and tenant is grounded in both contract and property law. The tenant has a property interest in the land for a given period of time. If the tenancy is long term or periodic, the tenant has the right to possess the land, restrict others (including the landlord) from entering upon it and sublease or assign the property. The landlord–tenant agreement may eliminate or limit these rights. The landlord–tenant agreement is normally embodied in a lease. The lease, though not historically or strictly a contract, may be subject to concepts embodied in contract law.
Duties of Landlord & Tenant under Law
The role of a landlord does not end with letting out his premises to his tenant. It is expected of him that he shall perform duties that are moral or legal in nature. There are several reciprocal duties between landlords and tenants. A landlord must keep the premises in good repair, but the tenant must not damage the premises. The tenant must leave the premises in their original condition, accounting for reasonable wear and tear, or risk losing the security deposit. Now what is security deposit? A security deposit is money deposited by the tenant with the landlord to guarantee the tenant's performance under the lease. If the tenant damages the premises, the landlord may keep the security deposit and sue the tenant for damages not covered by the deposit.
The landlord law invokes the duty to maintain the property in a reasonably safe condition in view of all the circumstances. In addition to this, state or local landlord tenant law sets the requirements for evicting a tenant, which may occur for only a limited number of reasons before the tenancy expires. A landlord must give a tenant notice to vacate the premises if the landlord wishes to rent the premises to another tenant. If the lease period expires and the landlord has not found a new tenant and has not issued a new lease to the present tenant, the present tenant may be allowed to stay on the premises.
Need to revise Land lord & Tenant Laws
The rental laws in India need to be revised to protect the owner and his/her property from the tenant. There were days when Courts in India had to consistently deal with issues where protection of tenants was of pivotal importance and the need of the hour. At that time, Landlords were a strong lobby to reckon with and the tenants were left at their mercy, exploited and always threatened with eviction. This caused the Legislature to intervene and the enact law to protect the tenants.
Things have changed now, especially with the increase in property rents and the buying power of individuals. While the rentals started hitting dizzy heights, tenants occupying prime properties since years, continued paying mere pennies for occupying these virtual gold mines, under protection from enactments that were brought into force for an altogether different need.
The Courts have always tried to strike a balance looking into reasonableness, hardship caused and market conditions to resolve dispute in this never-ending tussle between landlords and tenants. 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.
Tenancy Agreements in India
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.
The basis of the legal relationship between a landlord and tenant is grounded in both contract and property law. The tenant has a property interest in the land for a given period of time. If the tenancy is long term or periodic, the tenant has the right to possess the land, restrict others (including the landlord) from entering upon it and sublease or assign the property. The landlord–tenant agreement may eliminate or limit these rights. The landlord–tenant agreement is normally embodied in a lease. The lease, though not historically or strictly a contract, may be subject to concepts embodied in contract law.
Duties of Landlord & Tenant under Law
The role of a landlord does not end with letting out his premises to his tenant. It is expected of him that he shall perform duties that are moral or legal in nature. There are several reciprocal duties between landlords and tenants. A landlord must keep the premises in good repair, but the tenant must not damage the premises. The tenant must leave the premises in their original condition, accounting for reasonable wear and tear, or risk losing the security deposit. Now what is security deposit? A security deposit is money deposited by the tenant with the landlord to guarantee the tenant's performance under the lease. If the tenant damages the premises, the landlord may keep the security deposit and sue the tenant for damages not covered by the deposit.
The landlord law invokes the duty to maintain the property in a reasonably safe condition in view of all the circumstances. In addition to this, state or local landlord tenant law sets the requirements for evicting a tenant, which may occur for only a limited number of reasons before the tenancy expires. A landlord must give a tenant notice to vacate the premises if the landlord wishes to rent the premises to another tenant. If the lease period expires and the landlord has not found a new tenant and has not issued a new lease to the present tenant, the present tenant may be allowed to stay on the premises.
Need to revise Land lord & Tenant Laws
The rental laws in India need to be revised to protect the owner and his/her property from the tenant. There were days when Courts in India had to consistently deal with issues where protection of tenants was of pivotal importance and the need of the hour. At that time, Landlords were a strong lobby to reckon with and the tenants were left at their mercy, exploited and always threatened with eviction. This caused the Legislature to intervene and the enact law to protect the tenants.
Things have changed now, especially with the increase in property rents and the buying power of individuals. While the rentals started hitting dizzy heights, tenants occupying prime properties since years, continued paying mere pennies for occupying these virtual gold mines, under protection from enactments that were brought into force for an altogether different need.
The Courts have always tried to strike a balance looking into reasonableness, hardship caused and market conditions to resolve dispute in this never-ending tussle between landlords and tenants. 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.
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