Your guide to rights and responsibilities of a landlord

One of the most expensive purchases for a person is a property and this is also one of the best ways to earn money from- when the landlord rents it out. In this guide, we detail on the rights and responsibilities that a landlord of a residential property needs to know.

Who is a landlord? 

A person who owns a property that is let on rent– be it a residential, commercial or industrial is known as landlord. He is responsible for maintaining his property, collect the rent on time etc.

What are the legal rights of a landlord in India?

#1 Screen tenants  

A landlord has the right to screen the tenants on the basis of the many queries he may have and choose the right fit.

#2 Security deposit

When letting out his property for rent, a landlord has the right to collect security deposit. This is important because it helps cover any damage that has been done by the tenant in the property that he refuses to own up. Also, it takes care of any upaid rent that the tenant may not have paid and vacated the house.

Note that while this a right, a landlord cannot collect any security deposit that he wishes to.

• According to the Model Tenancy Act, 2021, a landlord can collect two months of rent as security deposit in case of a residential property.
• A property receipt should be given for the security deposit that has been collected. Note that this is refundable when the lease term expires or when the tenant moves out unless adjusted with some damage.
• While damage to the property can be compensated using the security deposit money, this money can’t be used for repair work that has been caused due to wear and tear in the property when it was rented out.
• It is the landlord’s responsibility to refund the security deposit within one month of the tenant vacating his property.

#3 Get rent on time

A landlord has the right to get rent for his residential property on time. To facilitate this, a landlord should specify the rental amount, the date of the month by which the tenant should pay him the rent, the preferred payment mode etc. This information should be recorded in the registered rental agreement.

#4 Evict the tenant

Although the landlord may have rented the property to a tenant at the end of the day, it is his property and he has all the right to ask a difficult tenant to vacate the house even before his tenure is over by giving him notice. This holds true for situations such as tenant disregarding rules of the housing society, causing nuisance or doing illegal activities in the premises etc. As per a Supreme Court ruling, landlords must follow the legal way by issuing a notice and getting a court order. Only then can the tenant be evicted. No arbitrary eviction is permitted legally.

What happens if the tenant disagrees to leave the flat?

If a tenant disagrees to leave the property, the landlord can first file for an eviction note in a court that mentions the time by which the tenant needs to vacate the property. If the tenant disregards this notice, an eviction suit can be filed against the tenant in a civil court by hiring a real estate lawyer.

#5 Terminate the rental agreement

There may be cases where the landlord may want to terminate the rental agreement earlier than the contract getting expired.  This may be because he may want to sell the property or move into it for self-use etc.

#6 Non-renewal of the rental agreement

It is completely the owner’s choice is he wishes to renew the rental agreement or no. A tenant cannot force the owner to renew the agreement. Once the tenure is over, a tenant will have to hand over the keys to the owner in the same condition that the property was handed over to them. This right is mostly exercised when the owner wants to change the tenant or when he wants to revise the rentals but the existing tenant is not agreeing for a hike.

#7 Increase rent

It is legal to increase the rent incrementally by 10% every 11 months in India (when the lease expired and is renewed again). There are other ways that a landlord can execute the rent agreement- signing a rental agreement for 2 years with a higher rent but one that won’t change for 2 years etc.

#8 Withhold part of house

A landlord has the right to withhold a part of the property for his personal use and rent the other areas. For instance, if a landlord has a 2 BHK, he is legally permitted to lock one room for personal use and give away the remaining 1BHK on rent.  Note that the rent that the landlord will command will be according to the 1BHK.

#9 Temporary occupation

In case of some renovation work that the property calls for, the landlord has the right to take possession of it temporarily. The only point to take care is that the landlord should ensure no inconvenience is caused to the tenant because of this. Once, the repair work is done, the property can be rented off to the same tenant.

What are the responsibilities of landlords in India? 

Along with rights comes responsibilities. Following are the responsibilities of a landlord:

#1 Fix a fair rent

The landlord should fix a rent that in sync with market rates and not fix something that he wishes for. This is monitored by the Rent Controls Act of a state where it is outlined on the rent that can be fixed for a particular property.

#2 Safety of the property

Before handing over the property, a landlord should ensure that his property is safe from hazards such as

• Gas: The gas pipeline is safe and maintained well.
• Electrical switches and appliances: All the plugs and plug points and the fixtures and fittings that are part of the house are maintained properly and one won’t get a shock from these.
• Fire: All the sprinklers in the house should be working and the fire alarm should also be working and should detect at the earliest any instance of fire.

#3 Police verificiation

A landlord should get the police verification done of the prospective client. A lot of people skip this step but this is very important as there may be anti-social elements present anywhere. Remember in case there is a legal problem because of the tenant and a police verification is missing, the landlord will be booked for this.

#4 Getting the rent agreement registered

There are two methods to put in place a rent contract- opt for a rental agreement or notarise the rental agreement. This should include all the terms of the lease including the rent to be paid per month, date before which rent should be paid, and tenure of the rental agreement. While the former will cost around Rs 3,000 to Rs 4,000 and will be divided between landlord and the tenant, the latter is only the cost of the stamp paper and so works out to be cheaper. However, note that rental agreement is valid in the court of law whereas notarised agreement doesn’t hold grounds when contested for legally.

#5 Maintenance

Since the property belongs to the landlord, he is responsible to pay towards the maintenance of the property and the society in which the property is present in. The cooperative housing society’s maintenance charges has to be paid by the landlord, although he may pass it on to the tenant in the form of rent.

Housing.com POV

To maintain a healthy relationship with the tenant, a landlord has to know all about his rights and responsibilities. This article helps the landlord understand this so that bad experiences leading to tenant eviction are avoided.