Moving out of a rented property comes with its unique challenges. Tenants, during relocation, often struggle with the huge costs and logistics. More importantly, there is one obligation they are bound to complete even after they decide to move out – completing the notice period as mentioned in the rental agreement. The Model Tenancy Act and state-specific laws have provisions that protect the rights of a tenant. There are also laws governing the notice period. Tenants and landlords must understand their rights and responsibilities to avoid potential disputes. In this article, we bring some useful information about the notice period that tenants should know when vacating a property.
What is a notice period in property renting?
In property renting, the notice period refers to a defined period during which a tenant or landlord is required to provide the other party before terminating the rental agreement. It is legally binding on both parties to adhere to the notice period. Failure to complete the notice period can give rise to potential disputes and legal issues.
Here are some crucial points to know about notice period:
Notice period should be given in written
The notice should always be provided in writing by the tenant or the landlord (whoever has decided to terminate the agreement) to the other party. It can be done through a signed letter, an email or WhatsApp, if acceptable.
When does the notice period kick in?
The notice period begins from the date the landlord or the tenant receives the written notice from the other party. It is not considered to start from the day it is sent.
What does a rental notice letter contain?
A rental notice letter is a formal document written by a landlord or tenant, stating their intention to terminate the tenancy. The notice letter should clearly mention the following details:
- A clear statement specifying the intent to vacate or terminate the lease
- The date the tenant plans to move out
- Details about the return of your keys and the refund of the security deposit
- Information about any pending dues or other property-related details
- Contact information and property address
- Signature of the tenant/ landlord to make the document official
It is important to retain a copy of the notice letter for personal records. Tenants can also specific their new rented property address or personal contact details to receive future communication and security deposit amount.
What is the standard notice period for tenants in India?
Generally, the notice period for tenants varies depending on the specific scenario and personal circumstances. However, tenants are legally bound to adhere to the rental agreement terms, including the notice period specified in it. Typically, a tenant must give the landlord a notice period of at least one month to three months. Moreover, there are state-specific tenancy laws that govern the rules around the notice period for rented properties.
What happens if a tenant does not complete the notice period?
If a tenant leaves the rented property before completing their defined notice period, this gives the landlord the right to take action against them. In such a case, the tenant may be liable to pay the rent for the remainder of the notice period. Alternatively, the landlord can forfeit their security deposit or deduct the amount equivalent to the pending dues. The tenant may also face risks such as legal action by the landlord or other financial penalties as mentioned in the rental agreement.
Significance tenancy laws in defining notice period
At the time of renting a property, landlords and tenants are legally bound to include a clause in the rental agreement that specifies the notice period for terminating the tenancy, either by the landlord or tenant. A rental agreement is a legally binding contract and if either party wants to terminate the tenancy before the term ends, it is mandatory to provide a notice. However, no notice is needed if the tenancy terminates automatically at the end of the term.
Providing a written notice protects the landlords and tenants against potential disputes. The notice letter can be used as documented proof if a dispute arises.
In the case of eviction, the notice period will be determined based on whether the property falls under the Rent Control Acts of various states or is governed by the Transfer of Property Act, 1882.
Notice period under the Transfer of Property Act, 1882
If the tenancy is governed by the Transfer of Property Act, 1882 (cases where rent control laws do not apply), the notice period for eviction will be 15 days if the rent is payable monthly, according to Section 106. In case of yearly tenancy, a notice period of six months is mandatory. However, this is mostly applicable for commercial properties.
Notice Period under various Rent Control Laws
In India, there are state-specific Rent Control Acts, which specify notice periods based on the grounds for eviction.
Delhi Rent Control Act, 1958: Under this act, notice period is not mandatory if the landlord is evicting for non-payment of rent. For other reasons, one month’s notice is allowed by courts.
Maharashtra Rent Control Act, 1999: According to this law, a notice period of 30 days is necessary before a landlord can file an eviction suit.
Tamil Nadu Regulation of Rights and Responsibilities of Landlords and Tenants Act, 2017: Under this law, the notice period should be clearly mentioned in the tenancy agreement. Otherwise, a three-month default period is allowed before eviction.
West Bengal Premises Tenancy Act, 1997: In West Benagl, a three months’ notice is mandatory for eviction due to personal necessity.
Model Tenancy Act, 2021
The Model Tenancy Act, 2021, was introduced with the aim of regulating the rental market in India and implementing various landlord-tenant laws to be followed in individual states.
In case the rental agreement is governed by the Model Tenancy Act, 2021, a notice period of three months or the time specified in the agreement is necessary for termination of the tenancy. In case the lease term has expired, the landlord must provide one month’s notice for eviction.
What if a tenant does not vacate at the end of the notice period?
If a tenant does not vacate the property at the end of the notice period, this provides a valid reason for the landlord to consider eviction. According to the Rent Control Acts in India, the common grounds for evicting the tenant include:
- Not vacating the rented premises even after the end of lease term
- Non-payment of the rent
- Sub-letting the property or a part of it without permission
- Misuse of the rented property
- Causing major damages to the rented property
- Conducting illegal activities in the premises
- Violation of clauses specified in the rental agreement
Click to know how to evict a difficult tenant if you are a landlord in India
Housing.com News Viewpoint
In property rentals, both landlords and tenants have their specific rights and responsibilities to fulfil. When vacating a property, tenants must refer to their rental agreements and serve a proper written notice, adhering to the defined period. They can utilise this time to fulfil their responsibilities of maintaining the property’s condition and ensuring smooth handover. Tenants also have certain rights, such as the choice to vacate the premises early with mutual consent. First-time renters may struggle to navigate the various stages of their rental journey. Hence, it would be beneficial to consult a legal professional.
FAQs
Can the notice period be waived?
In a tenancy, a notice period can be waived if both the landlord and tenant mutually agree to waive it. It is also possible if the agreement does not specify any notice required upon breach of contract.
Can a tenant leave without notice if they have not signed a formal agreement?
No. A tenant is not legally bound to give a notice period if there is no written agreement.
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