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How Rent Control Act Protects The Rights Of Tenants And Landlords?

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How The Rent Control Act Protects The Rights Of Both The Tenants And Landlords.

The leasing of property by its owner is governed by the Rent Control Act, every state has a different version of the act. In this article, we will examine how the Rent Control Act protects the rights of both the tenants and landlords.

Whenever a landlord rents out their property to a tenant, it falls under Rent Control Act. Different states have varying versions of the act, for example the state of Maharashtra has a Rent Control Act 1999, Delhi has Rent Control Act, 1958 and Chennai has Tamil Nadu Buildings Lease and Control Act, 1960. The act mainly helps settle disputes that may arise between a tenant (licensee) and the property owner (licensor).

How does the Rent Control Act help settle disputes between a tenant and landlord?

The Rent Control Act offers tenants with security and lays restrictions on the landlord’s power to evict the tenant. It also removes any undue advantages that might lead the tenant or landlord to deceit each other.

Rent Control Act

Some of the salient features of this act include;

  1. The act imposes laws on renting out property to assist tenants in identifying and getting a good rental accommodation.
  2. It imposes standard rentals beyond which the landlord cannot charge the tenant.
  3. It protects tenants against any indiscrimination and any unfair eviction by the owner of the property.
  4. It offers landlords with responsibilities and obligations towards tenants for maintaining of the rented property.
  5. It defines the right of landlords with regard to tenants who don’t fulfill obligations of paying rent on time or misuse the property.

How does the act protect the tenants?
The Rent Control Act makes sure that tenants cannot be removed from the property without a proper case. It offers protection to tenants facing eviction and necessitates that the landlord cannot cut-off or hold any essential supply or service.

the act protect the tenants

According to the act, the landlord has the responsibility of registering any agreement for leave and license or letting the property on rent. When the property owner does not register the said property with the tenant, the contention of the tenant in regard to terms and condition of the rental prevail unless the landlord has proven it otherwise.

The Rent Control Act has made it compulsory for landlords to give a written receipt for a payment made by the tenant. In case of the death of a tenant, the receipt would be issued in the name of the family member of the tenant. The failure to provide the receipt will be a punishable offence.

How are landlords protected under this act?

According to the Rent Control Act, the landlord can recover the possession of a rented property if they have the premises for bona fide purpose. The act makes it clear that in the event of the tenant having an alternate accommodation, the landlord can enforce their right and recover the premises.

the act protect the landlords

Are there any exceptions to this act?

The property that has been sub-leased to banks, public sector undertaking or a corporation under any state or central act, foreign missions, MNC’s, international agencies do not come under the ambit of this act.

Sub Leased

Rent Control Act does not apply to property let to private or public limited companies that have a paid-up share capital of Rs 1 crore or more.

 

ALSO READ: Rental Housing Policy: Implementation Challenges In India

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