Rights & Obligations Of Tenants In India

In the last 20 years, India’s urban population has become more migratory than ever before. Cities like Mumbai, Delhi-NCR, Bangalore, Pune and Chennai attract large numbers of professionals and students and as a result there’s a large floating population in these cities. Majority of these take some property or the other on rent. 

Leasing out houses and flats is big business in these cities and rents have skyrocketed in the past few years. This also means that the number of tenant-landlord disputes has also risen and increasingly one hears of cases where landlords, by using muscle-power or pressure, get their tenants evicted without proper notice or reason.

We list down tenants’ rights & obligations, so that the renting and subsequent vacation of a residential property is a smooth process for tenants as well Landlords.

1.  Right to demand an agreement

Many people prefer not to go through the hassle of police verification and registration of lease documents and instead, settle for informal agreements with their tenants, especially if they have known each other(Landlord & Tenant) for sometime or there was a common person known to both is involved.

This may work if everything goes smoothly. But it’s always better to have an agreement, to avoid any dispute in future. The agreement should mention all the conditions of tenancy like period of agreement,

notice period, monthly rent, deposit paid, if any, lock-in period and   subsequent hike rates & periods.

2.  Right to demand payment receipts

It is advisable to ask for a receipt every time you make a payment, and it should be no different with your rent. It is, after all, a substantial amount more than what you pay at a grocery store. This will protect you in case of false accusations of non-payment of rent.

3.  Right to drop contract and serve notice to landlord

If a tenant is unhappy with property, she/he has every right to leave the place. Of course, this has to be done according to the terms of the agreement and once the landlord has been apprised of the client’s intentions, the notice period begins.

4.  Right to a copy of bye-laws and rules of the association

Since a tenant becomes, legally a resident of a housing association or society, she/he has every right to get a copy of the bye-laws and rules of said housing association or society. This is important so that the tenant can know the rules that need to be adhered to and so that no undue complaint of flouting society rules is made against her/him.

5.  Right to use common areas of the society

The rights to use the common areas of the society such as the park, playground, gym or club house also come with the tenancy. If there are extra membership fees that need to be paid, it should be stated clearly in the agreement and decided as to who will pay the dues.

Tenants’ rights and obligations

1.  Introduction

Your main legal rights and responsibilities as a tenant are driven by   landlord and tenant law as well as from lease or tenancy agreement between you and your landlord.

The main legislation governing these rights and obligations is written in Landlords & Tenants Acts 1967 to 1994 and the Residential Tenancies Act 2004. However, if you are  living with your landlord you are not covered by landlord and tenant legislation.

Lease or tenancy agreement cannot take away your rights under the Residential Tenancies Act 2004. But you and your landlord can agree on matters that are not covered under this Act.

The provisions of the Residential Tenancies Act only apply to mainstream private rented housing at present, though the  Residential Tenancies (Amendment No. 2) Bill 2012 proposes to regulate many types of tenancies in the voluntary housing sector in the same way as private tenancies.

Tenants of  social housing and private tenants who live in their landlord's home, for example under the " Rent a Room" scheme or as “Paying Guest” are covered by different laws.

Rights as a tenant in private rented accommodation

1.  Entitled to quiet and exclusive possession of Rented Accommodation

If noise from other tenants or neighbors is disturbing you, ask can them to stop and also inform your landlord. If this does not work, you can lodge a formal complaint.

2.  Some other entitlements

-       You have the right to contact the landlord or their agent at any reasonable times.

-    You are also entitled to have appropriate contact information of Landlord like telephone numbers, email addresses, postal addresses etc.

-    Your landlord is only allowed to enter your home with your permission. If the landlord needs to carry out repairs or inspect the premises, it should be by prior intimation & consent, except in an emergency.

-        You are entitled to reimbursement of any repairs that you carry.

-    You are entitled to have your visitors or guest to stay overnight or for short periods, unless specifically forbidden in your tenancy agreement. You must tell your landlord if you have an extra person is moving in with you permanently.

-        You are entitled to termination of tenancy with appropriate notice.

-      You are entitled to refer any disputes to the Private Residential Tenancies Board (PRTB) without being penalized for doing so.

-     You have the right to a copy of any register entry in PRTB dealing with your tenancy.

-    All homes for rent must have a Building Energy Rating(BER), stating how energy-efficient the home is. This will help you to make an informed choice when comparing properties to rent.

3.  Security of tenure

In general, you may have security of tenure for 4 years, though your landlord may end the tenancy during the first 6 months without giving any reason. After 6 months, you have the right to stay for a further 3 years and 6 months, provided you don’t violate terms of the contract.

These provisions are in Part 4 of the Residential Tenancies Act 2004, so a tenancy that is in existence for more than 6 months is known as a Part 4 Tenancy. All tenancies are deemed to end after 4 years.

If you continue to be the tenant at the end of the 4 years, you have a Further Part 4 Tenancy. You may stay in the property but you are considered to have a new tenancy. 

If you intend to stay in the property, you should inform your landlord in writing between 3 months and 1 month before the expiry of your fixed-term tenancy or lease agreement.

This right to remain is subject to certain rights that the landlord continues to have. The landlord may reclaim the property for a number of reasons.

4.  Paying and reclaiming your deposit

You will probably have to pay a security deposit when rent a property. The landlord holds this deposit as security to cover any rent arrears, bills owing or damage beyond normal wear and tear at the end of the tenancy. There are no rules about the amount of the deposit, but it is usually equal to equal one or two month’s rent.

In general, when you vacate a property at the end of the agreed rental period or after giving the agreed notice, the landlord must return your security deposit, promptly and in full.

However, if you leave before the end of the agreed period, he may keep your deposit, even if you have given notice. You may also be liable for the amount of rent due until the end of the lease, depending on what is stated in the lease agreement.

5.  The landlord may keep part or all deposit in the following situations:

-    Rent arrears

-    Unpaid bills

-    Damage above normal wear and tear.

-    If you have not given adequate notice

The landlord may not hold your possessions against money that you owe, but he can apply to the PRTB if he feels that your deposit does not cover rent arrears or the cost of damage to the property.

6.  Obligations of tenant in a rented accommodation. You must:

-        Pay your rent on time.

-   Pay any other charges that are specified in the letting agreement, for example, waste collection charges, utility bills, management fees to the management company in an apartment complex etc.

-        Keep the property in good order.

-    Inform the landlord if repairs are needed and give the landlord access to the property to carry out repairs.

-       Give the landlord access with prior appointment, for routine inspections.

-       Inform the landlord of who is living in the property besides you.

-      Avoid causing damage or nuisance.

      -     Comply with any special terms in your tenancy agreement, oral or written.

-    Give landlord the information required to register with the PRTB and sign the registration form when asked to do so.

-       Give the landlord proper notice when you are ending tenancy.

You should note that it may be more difficult to assert your rights if you have broken conditions of your tenancy.

Other charges and payments

-    Your landlord is responsible for paying the Local Property Tax to the Revenue Commissioners. There may be an agreement that you will pay this amount, but your liability will be to the landlord and not to Revenue.

-    Whether or not you have to pay for services such as heating, electricity, water, gas or TV connections depends on the terms of your rent agreement. In practice, if you are taking a house on rent, you are likely to be liable for all these charges.

Multi-unit developments

In some multi-unit developments, such as apartment complexes, the heating may be operated centrally and you may not have to pay separately for it. In some complexes, cable TV may be supplied. In most complexes, bin collection is organized by the management company and you may not have to pay charges for this.

There are annual or monthly charges in multi-unit developments to pay for the maintenance, insurance and repair of common areas, for the provision of common services to unit owners and to contribute to a sinking fund for non-routine refurbishment and maintenance expenses. Your landlord may pass these charges on to you if this is agreed, but if they are not paid, the owners’ management company may pursue the owner for them.

Private tenancies and receivership

If your landlord’s loan is in and the lender has appointed a receiver, you must pay the rent to the receiver, but it is the landlord who remains legally responsible for matters such as returning your deposits.

The receiver may arrange for repairs to be carried out, but it is unclear who will bear the cost, receiver or landlord.

Tax issues

If you pay income tax and if you were already staying as a tenant on 7 December 2010, you may be eligible for some tax relief on the rent. If your landlord lives outside the State, you must deduct tax for the rent and account for it to the Revenue Commissioners.