Challenges faced by homeowner and tenants when giving or getting home on rent

People usually find it to be unsafe and challenging task to get an apartment on rent or to put an owned property on rent. So, whether you are the property owner or a tenant, in both the cases your mind may remain occupied with fear and uncertainty. So, what are the causes due to which there are disputes between homeowner and tenants, or there are dissatisfactions between them? Let’s find it out.

Reasons for disputes between homeowner and tenants

“The most common reasons for disputes are delays or non-payment of rent. In India, it is difficult to get tenants evicted unless there is a threat of litigation and some sorts of consequences of non-payment are made obvious to the tenant”, says Mr. Rituraj Verma, Partner, Nisus Finance

Verma further adds, “Second common cause for dispute is the escalation of rental once the lease is over and the landlord wants to lease the property at a higher rate. Tenants don’t like the increase to be steep, whereas the market may have moved much higher since the last rent renewal”.

Often it has been seen that if the property is to be redeveloped and the tenant is unwilling to move out unless there is a payment made to him/her to vacate the premises. This dispute is longer lasting and can drag over many years and often ends up in court.

“The disputes between tenants and homeowners are stressful for both parties. The very common reason for the disputes is cleaning and maintenance of the property. Disputes often even arise not over cleaning and repairs, but over the cost that is incurred for its repair/mending”, explains Mr. Amit Wadhwani, Co-Founder, Sai Estate Consultants Chembur Pvt Ltd.

Experts point out that another reason for disputes is rental revision for old pagri properties, where rents are minimal, and landlords want a change as per current market rentals. This dispute also often lands up in court and drags for years and is often only settled if there is a redevelopment planned.

Ways to avoid/resolve disputes between landlord and tenants

It is important that Homeowners and tenants keep a transparent relation with regards to your habits, health issue or as simple as on the point of having frequent visitors.

Some key steps to avoid disputes related to rental home are:

Incorporate common disputable issues in the lease agreement to prevent misunderstanding in the future
Landlord and tenant should keep each other in the loop to avoid last minute surprises for example birthday parties, renovation work, bringing new tenant in the adjacent apartment, etc.
The habit of keeping the property clean and presentable to sudden visitors needs to be assured by the tenant
Regular interaction between both the parties

Finally

In many cases, disputes between landlords and tenants can be and should in most cases be resolved informally between both parties. However, sometimes the need for an intervention of the third party is felt to hear both sides and then recommend a solution.

The most important point to understand is that the landlord-tenant situation is not very different from any other trade risk where a buyer must trust the seller and vice versa. So, establishing this trust is most important so that in case there is a dispute it can be solved amicably later.

Lease agreement fixes the landlord and the tenant to comply with the mutually-agreed conditions, hence is the crucial document. Legal assistance from an expert should be taken to draft the same.

Challenges face by homeowner

– Deciding rent amount: Check with the rents of nearby properties and help you arrive at an approximate rent per square feet figure

– Finding a credible tenant: Check the background of tenant by checking CIBIL and previous landlord’s experience

Challenges face by tenants

– Trustworthiness of landlord: Procure all the information about the landlord from neighbours

– Ensuring return of deposit money: Give deposit money through cheque and mention it in the lease agreement

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