What to do if your tenant is not paying rent?

Before taking legal action, one can explore informal ways to resolve the issue.

With fast-developing infrastructure and growing IT and commercial hubs, the number of people opting for rented homes closer to their workplace is increasing in several cities. If you are a landlord renting out a property, you are entitled to charge monthly rent upon your tenant. A landlord and a tenant are bound by the rent agreement that both parties must sign under the law. The tenant must pay the rent as specified in the agreement. One of the common problems that landlords face is the tenant defaulting on rent payments or not vacating the house. However, landlords have certain legal rights they can exercise, which will be discussed in this article.

 

Review the rent agreement

Check if the rental agreement clearly specifies the terms and conditions of the tenancy. This includes the rental amount, due date of payment and consequences for non-payment. The agreement will be the basis for taking any legal action taken by a landlord.

 

Recover money from security deposit

Landlords usually obtain a security deposit from tenants before renting out property. This deposit serves as a security against any damages or unpaid rent during the tenancy period. The amount is equal to two months’ rent, depending on the agreement.

 

Negotiation

Before taking legal action, one can explore informal ways to resolve the issue if the tenant appears genuine. You can consult a lawyer and send a legal notice to the tenant. One should mention in the notice the date and time by which the landlord wants the tenant to vacate the property. Moreover, there are mediation centres and arbitration forums in many cities, which provide a platform to tackle disputes amicably.

 

File a case in a court

If the tenant does not pay the rent despite the legal notice, one can file a case against them in an appropriate court. One can approach a civil court for smaller rent amounts while a district court or a high court for larger amounts.

 

Obtain and execute decree from court

After the landlord files a case against the tenant, the court examines the evidence and hears both parties. If the court observes that the evidence is in favour of the landlord, it issues a decree ordering the tenant to pay the outstanding rent. The landlord should approach the court for the execution of the decree. The court can decide on how the unpaid rent may be recovered. This includes attachment of the tenant’s property, garnishment of their wages or even eviction from the premises. One can consult a lawyer to ensure the proper execution of the decree.

 

File an eviction lawsuit

The landlord must send sufficient notice to the tenant before approaching a court. A landlord can approach the court and file an eviction lawsuit against the tenant. According to the new Model Tenancy Act, 2015, a landlord can evict a tenant in case of a breach of the rent agreement and default in payment of rent for a specified period. Eviction laws may differ from state to state.

 

Temporary repossession of property

A landlord has the right to temporarily get possession of the property to undertake repairs, alter the property or make additions or changes. However, this cannot be done without the property being vacated. such changes should not bring any loss to the tenant or materially impact the tenancy. Once the purpose is accomplished, the property should be handed back to the tenant. Moreover, if the property is unsafe for habitation or is beyond repair, the landlord can take possession of the property.

 

FAQs

What is the legal notice for non-payment of rent in India?

A landlord should issue a legal notice to the tenants specifying the date and time by which they want the tenant to vacate the property.

What should you do when a tenant refuses to vacate?

If a tenant refuses to vacate a property, a landlord can approach a lawyer and file an eviction suit in a civil court under whose jurisdiction the property is located.

Can a landlord evict you without a court order in India?

A landlord should approach the court and obtain a court order for the eviction of the tenant.

What can I do if someone is not paying rent?

One can look for informal ways to resolve the issue. However, if this does not work, one can send a legal notice to the tenant. The landlord has the legal right to file an eviction lawsuit.

What is the new rent law in India?

The Model Tenancy Act, 2021 was approved by the Union Cabinet on June 2, 2021, which aims to protect the rights of landlords and tenants.

What is the minimum rental period in India?

In India, a rent agreement is usually prepared for an 11-month term.

Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com
Was this article useful?
  • 😃 (0)
  • 😐 (0)
  • 😔 (0)

Recent Podcasts

  • Keeping it Real: Housing.com podcast Episode 47Keeping it Real: Housing.com podcast Episode 47
  • Keeping it Real: Housing.com podcast Episode 46Keeping it Real: Housing.com podcast Episode 46
  • Keeping it Real: Housing.com podcast Episode 45Keeping it Real: Housing.com podcast Episode 45
  • Keeping it Real: Housing.com podcast Episode 44Keeping it Real: Housing.com podcast Episode 44
  • Keeping it Real: Housing.com podcast Episode 43Keeping it Real: Housing.com podcast Episode 43
  • Keeping it Real: Housing.com podcast Episode 42Keeping it Real: Housing.com podcast Episode 42