• Status of tenant whose rent is fixed by fair rent law

Dear Sir/Madam, kindly advise on the situation where we have a tenant whose rent was fixed from 500 inr to 4500 inr as per fair rent law. this tenant has been occupying our house for more than 25 years. my questions regarding this are:
1) is it possible to devise a new rental agreement with him for 2 years as is the norm?
2) is it possible to stipulate an increase after 2 years?
3) if he does not agree to the agreement or the increase, what legal remedies can be sought?
thank you for your time,
Asked 6 years ago in Property Law
Religion: Other

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15 Answers

1. This would depend on the stipulation/relevant clause as regards to renewal in the present rental agreement.

2. Yes, there's no embargo in doing this.

3. You may seek the eviction of this tenant.

Vibhanshu Srivastava
Advocate, Lucknow
9636 Answers
305 Consultations

5.0 on 5.0

If tenant is agreeable you can have leave and licence agreement for 2 years with increase in rentals after 2 years

2) if tenant refuses and has made unauthorised alterations file eviction suit against tenant

3) if you require premises for personal use file eviction suit

Ajay Sethi
Advocate, Mumbai
96020 Answers
7712 Consultations

5.0 on 5.0

Rent control laws are equitable laws and beneficial for both owners and tenant.

It is not advisable to allow such controversial tenants to occupy the house for such a long period.

Get him evicted and state fair reasons that the property is needed for your personal use.

Rajaganapathy Ganesan
Advocate, Chennai
2156 Answers
8 Consultations

4.9 on 5.0

1. It id required to know in which State in India your said property is situated since the provisions of Tenancy Act varies from State to State. However, since fixation of fair rent has already been done and accepted by both the parties, it is possible to devise a new rental agreement with him for the period of next two years.

2.Yes you can keep the clause of increase in the rent acceptable to him.

3. File an eviction suit in case he refuses to enter in to the new agreement with the clause to increse rent

Krishna Kishore Ganguly
Advocate, Kolkata
27330 Answers
726 Consultations

5.0 on 5.0

The following is the beautiful judgment on the rights of land lords to get rent at the present market value: The following questions are answered as per present prevalent procedure in India.. I would have answered with more clarity if you would have stated the name of State in which your property is situated:

1) is it possible to devise a new rental agreement with him for 2 years as is the norm?

Ans: Yes, you can even enhence the rent every year with 5 percent increase as per prevailing customs in the market.

2) is it possible to stipulate an increase after 2 years?

Ans :Yes

3) if he does not agree to the agreement or the increase, what legal remedies can be sought?

Ans: If a tenant not aggreable to your terms he will be evicted on the orders of the Court. The Supreme Court is as follows:

====================================================================================

The Supreme Court has drafted a model landlord-tenant agreement promising tenants five years of peaceful stay in the premises if they give rent at market rate, increase it by 10% every three years and pay the property tax for the house.

It asked the tenants to pay up every charge accrued on the house to enable the landlord get the rentals without any deduction.

"If the present and prevalent market rent assessed and fixed between the parties is paid by the tenant, the landlord shall not be entitled to bring any action for his eviction against such a tenant at least for a period of five years.

Thus, for five years the tenant shall enjoy immunity from being evicted from the premises," the court said. The court realized that in most landlord-tenant disputes, there were no written contracts and the tenants took advantage of the situation because of the slow process of rent control laws and the judicial process involved in eviction.

The court said adherence to these guidelines could considerably bring down litigation. This judgment would not affect the tenancy governed by existing lease deeds or specific contracts between the landlord and tenant.

It found tenants occupying the property by paying rent at a rate determined 20-25 years ago, and said half of the landlord-tenant disputes would not have reached the courts if the tenants agreed to pay rent at market rate.

Writing from personal and judicial experience, the court said: "We deem it our duty and obligation to fix some guidelines and norms for such type of litigation, so as to minimize the landlord-tenant litigation at all levels."

It said: "The tenant must enhance the rent according to the terms of the agreement or at least by 10% after every three years. If the rent is too low in comparison to the market rent having been fixed almost 20 to 25 years back, then the present market rate should be worked out."

It should be determined either on the basis of valuation report or reliable estimates of building rentals in surrounding areas let out recently, said Justice Bhandari, who authored the judgment for the bench.

"The rent should be just, proper and adequate and be fixed keeping in mind the location of the property, type of construction, accessibility with the main road, availability of parking space. Care should be taken that it does not end up being a bonanza for the landlord," it said.

"Apart from the rentals, property tax, water tax, maintenance charges, electricity charges for the actual consumption of the tenanted premises and for common area shall be payable by the tenant only so that the landlord gets the actual rent out of which nothing should be deductible," he said.

"In case there is enhancement in property tax, water tax or maintenance charges, electricity charges then the same shall also be borne by the tenant only," the bench said.

Minor repairs of the premises would be carried out by the tenant from his own pocket and he could not undertake any major repairs, requiring reimbursement, without prior permission from the landlord, the bench said.

"If any major repairs are carried out then in that case only after obtaining permission from the landlord in writing, the same shall be carried out and modalities with regard to adjustment of the amount spent thereon, would have to be worked out between the parties," the court said.

Kishan Dutt Kalaskar
Advocate, Bangalore
6136 Answers
489 Consultations

4.8 on 5.0

1. Yes, if the tenant so agrees you can make a new agreement.

2.Yes, if both aprties agree even yearly increase can be made.

3.You can file suit for eviction or alternatively you can file fresh application for fair rent.

Devajyoti Barman
Advocate, Kolkata
23091 Answers
504 Consultations

5.0 on 5.0

Dear Client,

New rent agreement permissible by mutual consent.

Under which law/order/or by mutual agreement rent revised from 500 to 4500.

If Tenant do not agree, law allows revision of rent acc, to local rent act. Location of Property - State ?

Yogendra Singh Rajawat
Advocate, Jaipur
22877 Answers
31 Consultations

4.4 on 5.0

hi,yes sir you can revise the agreement with new rent ..if he do not agree you can file a eviction petition ..kindly share the previous rent agreement for better guidance over the topic

Hemant Chaudhary
Advocate, Gurgaon
4630 Answers
67 Consultations

4.9 on 5.0

1) tenant is liable to pay the fair rent fixed by court

2) you cannot force tenant to enter into fresh 2 years agreement

Ajay Sethi
Advocate, Mumbai
96020 Answers
7712 Consultations

5.0 on 5.0

The rent should be based on fair market standards. I would advise you to fix an appointment with me with all relevant materials to offer you a solution. Emails going back and forth will be waste of time. Hope you understand.

Rajaganapathy Ganesan
Advocate, Chennai
2156 Answers
8 Consultations

4.9 on 5.0

The advice parted by me is still applicable since Tamilnadu has enacted a much balanced Tenancy Act.which shall cover Tenants paying Rs.2 K towards monthly rent and stress has been given on payment of fare rent.

Krishna Kishore Ganguly
Advocate, Kolkata
27330 Answers
726 Consultations

5.0 on 5.0

1. Rent Control laws are different in every state.

2. If a fair rent has been fixed then a new rental agreement can still be made. The new agreement can also contain a clause for an annual increase or after 2 years.

3. If he does not agree to increase the rent then you may file a petition for his eviction.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

Rent will increase by 5% every year and after 10 years, rent will merge and on that merge rent, 5% will increase every year., this is general law.

Show me order of fair ( standard ) rent case.

Yogendra Singh Rajawat
Advocate, Jaipur
22877 Answers
31 Consultations

4.4 on 5.0

1. Fixing fair rent is not a restriction to tenancy agreements or renewals.

2. If the agreement contains that the rent can be enhanced after 2 years to the agreed percentage, it can be very well enforced.

3. You can issue a termination notice and may instruct him to vacate by serving a legal notice citing this apart from other reasons for vacating him.

Let him go to the court,, you can challenge the same on merits.

T Kalaiselvan
Advocate, Vellore
86221 Answers
2288 Consultations

5.0 on 5.0

Your mother approached the rent control court only for fixing the fair rent and not for other tenancy related problems.

Since you are the present owner, it is pertinent that you enter into a sale agreement with the tenant, if he refuses then you may ask him to vacate the premises.

You can serve a legal notice and then file an eviction suit immediately on expiration of the stipulated period given in the legal notice

T Kalaiselvan
Advocate, Vellore
86221 Answers
2288 Consultations

5.0 on 5.0

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