Things landlords may not tell you

In India, there are state-specific rent control act and tenancy laws to protect the interests of the landlords and tenants to prevent potential disputes. When entering into a rental agreement, it is crucial for both parties to disclose important information. Property owners should be transparent in sharing details about the property and property maintenance rules when renting out their property. Disputes arise due to issues such as unpaid or delayed rent, property damage or unclear clauses in the rental agreements. It becomes necessary for prospective tenants to be careful when finalising a rented property. In this guide, we discuss the common things that landlords tend to hide from prospective tenants.

#1. Unfair rent increase

Some landlords may not disclose the details of the frequency of rent increases. Typically, it is not clearly specified in the tenancy laws to mandatorily include the rent increase clause. This could be a reason for dispute between the landlord and tenant in future.

Rent increase clauses define how and when the rent will be increased. It safeguards the landlord’s rights to increase the rent and helps the tenant financially prepare for the same. In India, rent increases take place annually at the time of renewal of the rent agreement. The percentage increase ranges from 5% to 8%, varying from state to state. Prospective tenants should discuss the terms of the rent increase before finalising the agreement.

#2. Hidden maintenance charges

Another potential reason for a landlord-tenant dispute could be an unclear clause about maintenance and non-maintenance charges in the rent agreement. Both parties should discuss and decide who will bear the monthly maintenance costs. However, it is also crucial to discuss the non-maintenance charges. This may be applicable in the case of additional charges for corpus fund, sinking fund, renovating apartments, etc., that apartment associations or RWAs may ask. Typically, these costs do not come under maintenance charges and must be borne by the landlord. Potential tenants should check if this clause is clearly stated in the rent agreement.

#3. What can be deducted from security deposit

Security deposit is an upfront expense tenants incur before moving into the property and the amount is refunded when the tenancy ends. Under the Model Tenancy Law, it is specified that the security deposit must not exceed two months’ rent in residential properties. However, landlords in some top cities like Delhi and Mumbai have been taking advantage of the high cost of living and demanding higher amounts exceeding two months’ rent. Hence, tenants should be aware of local laws, which will help them negotiate better when renting.

Further, landlords have the right to deduct money to repair any damages to the property caused by the tenant, such as drilling holes in the walls, broken fittings, cracked tiles or windows, etc. They may also make deductions for unpaid rent or utility bills or any breach of contract. Such expenses can be deducted from the security deposit amount and the remaining money must be refunded to the tenant.

However, security deposits are not meant to cover normal wear and tear occurring during the tenancy. Potential tenants should clearly discuss and understand what can be deducted from the security deposit and what cannot to safeguard their interests and prevent potential disputes.

#4. Structural problems

Property owners may hide common structural issues or avoid sharing with potential tenants to avoid maintenance expenses. There may be defects that are not prominently visible, including faulty foundations, pipe leakages, cracked walls, sagging roofs, faulty wiring, etc. Landlords may even conceal defects like water intrusions or cracked walls by adding a fresh coat of paint. If ignored, these problems can become severe and the tenant may end up paying for the repairs. Thus, prospective tenants should check for these issues when visiting the property before renting.

#5. Pest infestation

Some landlords tend to hide problems like infestations by pests, especially termites from potential tenants. Pests such as cockroaches, lizards, ants, silverfish, moths, etc., are likely to hide in areas such as attics, basements, crawlspaces and other openings or gaps in the house. Renting such a property could pose inconveniences and expenses for the tenant. Thus, when inspecting the property, prospective tenants should look out for such issues or ask the landlord about any pest infestation in the house. They may even request landlords to get pest control done before occupying the property.

#5. Sale of the property

Some landlords decide to sell off their properties while their tenants still occupy the property. This may cause inconvenience for the tenants and disputes with the new landlord in some cases. Hence, potential tenants should check if rent agreements clearly specify that the tenant’s right to use the premises would not be affected in case of the property transfer. The new owner should be bound by the terms of the rent agreement, including refunding the security deposit.

#6. Hidden biases when selecting tenants

Some landlords may have biases when it comes to finding the right tenants for their property. It could be based on one’s gender or marital status. It is not uncommon to find landlords who prefer families over single individuals. Similarly, there may be rules on having pets in the house, which may restrict those owning pets from renting a property. Tenants must be aware that discrimination based on marital status or gender is prohibited as per the law. There are laws to protect the rights of unmarried people when it comes to renting a property.

#7. Neighbourhood problems

Property owners might not share the common issues in the neighbourhood to avoid losing the rental opportunity. They may tend to hide issues like stray animals, lack of certain amenities or parking spaces, noisy or disruptive neighbours, etc. This could prove to be a hassle for the tenant occupying the property and result in potential disputes with the landlord. To avoid such problems, prospective tenants should ask specific questions about the neighbourhood. They may also speak to people in the neighbourhood or the security guard to understand the common problems in the area and then make an informed decision.

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When selecting a rented property, prospective tenants should assess the property based on various aspects such as the structural condition, neighbourhood, pest problems, etc. More importantly, they should know their rights and responsibilities and discuss the key clauses with their landlords to protect their interests. They may seek the assistance of a legal professional.

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