Tenancy laws in India

By Team Legal Helpline India, December 25, 2014

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Tenancy laws in India, more specially the law applicable in urban areas and the metropolitan cities are a great point of discussion in the legal circles. Through times the tenancy laws in India have taken various shapes and has tried to keep pace with the growing value of the rental properties in metropolitan cities of India. As a matter of fact the tenancy laws in India determines the relationship between the landlord and the tenant. It further determines the demand and supply of the residential houses as assets which can fetch ensured income by way of good rentals for the investors. The tenancy law in India thus is an important factor controlling the real estate market, more so the housing sector in India.

Most of the tenancy laws in India are in the form of state legislations which protect the basic nature of the relationship between the landlord and the tenant for a residential property. The basis law related to the regulation of the relationship of landlord and tenant is the Transfer of Property Act which is a central legislation. In the absence of any specific enactment by the states, the provisions of The Transfer of Property Act are applicable under the Tenancy laws in India. The overall legal setup related to the tenancy laws in India for the urban areas is very complex and confusing but the standard practice of letting out houses is a normal phenomenon in India which is more informal and recognized socially. While letting out a residential property one can consider the following aspects more particularly. Tenancy laws in India are however based on the location of the property but some broad tips pertaining to the same are given as under:


i) Take the complete details of the tenant with his proof of identity and documents in support of his real address etc. as it helps in identifying the impostors, criminals or unwanted people in case of any untoward incident.

ii) Insist on preparing a rent deed. The rent deed for the tenancy up to a period of 11 months can remain unregistered. In case of tenancy is being created for a period more than 11 months then the rent deed should be registered to give it a legal value under the tenancy laws in India.

iii) The rent deed must mention all the terms and conditions of the tenancy which may contain the monthly rent to be paid by the tenant, the expenses related to the services consumed by the tenant. It may also contain the parking charges and other extra expense involved.

iv) The rent deed must contain the period of tenancy i.e. the period when the tenancy commences and the period when it is going to be over. The date of payment of the rent may be also mentioned. It should also cover various other important aspects of the tenancy laws in India

v) It should also contain the proposed increase in the rent which can be automatic after the period of time or can be negotiated mutually under the tenancy laws in India.

vi) In the properties which are only for residential use, it should be specifically mentioned that the same is being rented out only for residential purposes only and is not to be used for any other purpose.

vii) The other aspects of sub-letting, misuse, damages etc may be covered and mentioned in the lease deed under the tenancy laws in India.

viii) It is always better to consult a good lawyer and get his advice on all aspects related to tenancy laws in India and then get the lease deed or the tenancy agreement drafted accordingly.

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