Renting a House? 10 Laws that Every Tenant & Owner in India must Know

• The Model Tenancy Act, 2021 provides a framework for regulating rental housing and defining landlord-tenant responsibilities.

• Tenants and landlords should understand rules related to eviction, repairs, essential services, security deposits and privacy.

• If either party violates the rental agreement, the affected party can issue a notice or seek appropriate legal remedies.

• TATA AIG home insurance plan comes with loss of rent or alternative accommodation benefit to provide financial support if the insured home becomes unfit to live in.

The Model Tenancy Act, 2021 (MTA) was issued by the Ministry of Housing and Urban Affairs and provides a framework for regulating rental housing. The aim is to establish a clear relationship between landlords and tenants.

These house rent rules and regulations cover various aspects of renting a property, including rent agreements, security deposits, rent payments, maintenance, repairs, etc.

Generally, these rules are clearly specified in the rental agreement, which helps both parties understand their responsibilities. It also helps in preventing disagreements over rent, deposits, repairs and eviction.

To protect the interests of both tenant and landlord, various house rent rules and regulations govern the rental relationship. Here are common rules that every tenant and landlord should know:

1. Written Rent Agreement

The house rent agreement rules safeguard the interests of both the landlord and tenants. A rental agreement should be in writing and clearly mention the terms and conditions agreed upon by both parties.

This can help avoid misunderstandings and disputes during the tenancy. An oral agreement is not legally binding in India. The agreement should specify the house rent deposit rules, rent payment date, tenancy period and more. Both parties should have a signed copy of the agreement for their future reference.

2. Illegal Eviction

A landlord cannot evict a tenant without following the applicable legal process and the terms of the rental agreement. The circumstances and procedure for eviction may vary depending on the state-specific tenancy laws and the terms agreed upon in the rental agreement.

Tenants should be given the required notice and cannot generally be forced to vacate the property through unlawful means. Landlords should follow the prescribed legal procedure to recover possession of the property.

3. Repairs and Maintenance

Repairs and maintenance are an important part of home rent rules and regulations. Under this, both landlords and tenants should know their responsibilities to maintain the rented property.

Generally, landlords are responsible for the structural repairs and other essential maintenance of the property. The tenant is responsible for minor repairs caused by their negligence or misuse. The lease agreement house rules clearly define who would bear the cost of repairs.

4. Essential Services

Providing essential services to the tenants is an important part of house rent agreement rules. It means owners need to provide essential services like water supply and electricity to the tenants when they rent their apartments.

In any circumstances, the owner cannot deliberately withhold essential services to force a tenant to vacate the property or for any other unlawful purpose. However, the tenant is responsible for paying the bills for essential services such as water supply bills, electricity bills, etc.

5. Return of Security Deposit

The house rent deposit rules are also a crucial part of the landlord-tenant relationship. The security deposit is the amount which the tenant pays to the landlord at the time of leasing the property.

When the tenancy ends, the landlord should return the refundable security deposit after adjusting any legitimate outstanding rent, utility bills or repair costs, as applicable. The rental agreement should clearly mention the security deposit amount, conditions for deductions and the expected timeline for its return.

6. Privacy of KYC Documents

At the time of leasing the property, tenants need to provide KYC documents such as Aadhaar card, driving licence, passport, etc. to the landlord. Landlords should handle these documents responsibly and use the information only for legitimate purposes, such as tenant verification or complying with applicable legal requirements.

Tenants should also avoid sharing unnecessary personal information and should provide documents through secure channels wherever possible. Keeping these documents private and secure can help reduce the risk of misuse of personal information.

7. No Entry without Permission

Another important rule for renting a house applies to landlords. A landlord should not enter the rented premises without the tenant’s permission, except in situations permitted by applicable law or in an emergency.

This means that once tenants start living in the property, they are entitled to privacy during the tenancy period. In case the landlord wants to inspect the house or show it to prospective tenants, they need to give prior notice to the tenant before visiting the property.

8. Demise of the Tenant

Another important home rent rule comes into play in the event of the unfortunate death of the tenants. The death of the tenant does not mean the tenancy ends immediately.

In case of death, the right to tenancy goes to their successor, which can be a spouse, parents, son, etc. Landlords should follow the applicable process before asking the family members or legal heirs to vacate the property.

9. Uninhabitable Conditions

The landlord should provide the tenant with a place that is reasonably fit for possession and has all essential facilities, such as water and electricity. If the property becomes uninhabitable due to serious structural damage or other issues, the tenant should immediately inform the landlord.

Both the tenant and landlord should address the issue according to their respective responsibilities. Furthermore, if the maintenance charges of the house exceed 50% of the rent, the house will be considered uninhabitable. The tenant has the right to vacate the place.

10. Providing Rent Receipt

Providing a rent receipt helps maintain a clear record of rent payments made by the tenant. A landlord should provide a rent receipt or other appropriate proof of payment where required by applicable law or agreed upon in the rental agreement.

The receipt should ideally mention details such as the tenant’s name, rent amount, payment date, property details and payment mode. Tenants should keep these records safely as proof of rent payments and for future reference.

If the tenant or landlord breaks the house rent agreement rules, then the affected party can take the necessary action based on the seriousness of the violations. Here is the course of action both parties can take.

When Tenant Violates the Rental Agreement

If a tenant breaks the rental agreement rules such as causing property damage, missing rent or subletting the apartment without the owner’s permission, the landlord can take the following actions:

Issue a Warning or Notice to the Tenant: The landlord has the right to issue a warning or send notice about the incident to the tenant. The notice can clearly specify the condition of the landlord; for example, if the property is damaged, the landlord can ask the tenant to fix it.

Ask Tenant to Vacate the Place: If the tenant ignores the warning or notice, then the landlord has the right to ask the tenant to vacate the place. However, the landlord should give the tenant proper time to find a suitable place to stay.

Impose Financial Penalties Against the Tenant: The landlord may also deduct the repair expenses from the security deposit if the property is damaged by the tenant. Or if a tenant fails to pay the rent, the landlord can deduct it from the security deposit. However, they need to inform the tenant about the same.

When Landlord Violates the Rental Agreement

If a landlord violates the rental agreement, such as entering the home without notice, not fixing major structural defects or withholding the security deposit illegally, the tenants are allowed to take the following course of action:

Send Legal Notice to the Landlord: The tenant has the right to send the legal notice to the landlord. The notice should clearly state that the landlord must fix the problem immediately or provide the promised service.

Approach Consumer Forum or Civil Court: If the landlord is not responding to the legal notice or not taking the appropriate action, then the tenant has the right to move to the consumer forum or civil court to seek relief from the official authorities.

Breaking the Lease: Lastly, if the house has become uninhabitable for the tenant due to structural damage or breach of privacy, the tenant can break the lease effective immediately by vacating the place.

A rental agreement is the most important document which specifies the roles and responsibilities of the tenants and landlords. Therefore, it should be signed carefully. Here are some tips both tenants and landlords should follow before signing a rental agreement:

• Before signing the agreement, both parties should read the clause carefully.

• The landlord should check the identity documents submitted by the tenants carefully.

• Both parties should keep a copy of the agreement and payment receipt to avoid any payment-related confusion in future.

• Tenants and landlords should document their moving condition in the rental agreement itself.

Understanding the rules for renting a house is crucial for both tenants and landlords. It helps protect their legal rights, clarify their responsibilities and avoid disputes during the tenancy period.

Also, rental agreement rules may vary based on location and applicable local laws, so tenants and landlords should check the tenancy laws before preparing the rental agreement.

Along with being aware of house and apartment rules, both parties should consider investing in a house insurance plan. The landlord can safeguard their house structure with the house insurance plan while tenants can protect their valuable household contents from unexpected damage and loss.

When it comes to buying a home insurance plan, TATA AIG offers a custom plan that protects not only the structure but also the household contents. Under content insurance, you will get coverage for valuable items like jewellery, fine arts, portable goods and more.

Our plan also comes with loss of rent or rent for alternative accommodation benefits. It covers loss of rent for landlords or rent for similar alternative accommodation for homeowners or tenants for up to 12 months if the insured home becomes unfit for living due to a covered loss. Get your home secured with a TATA AIG home insurance plan!