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  • Category: Miscellaneous

    Under the new tenancy law no house would be vacant

    The central govt in consultation and coordination with the state governments wants to bring new change in the existing tenancy laws where in new provisions made to unlock the tenant portions and lease for the rent thereby incresing the property value and also a pride factor for the owner. Either too in some states the tenancy act prevents leasing to other persons from outside and some owners are not leasing for the companies and business purpose and with new laws the owners would now be happy that they would get good tenant with fetching rent.
  • #732947
    There are some good points in this act. The advance can be maximum of two months rent for residentials purposes and 6 months for commercial use.
    The owner has to give three months notice to the tenant if he wants to increase the rent. This notice should be in writing.
    This new law is not applicable to industrial purposes. The Act may be implemented in many states during this year This new act may bring down disputes between the landlord and tenants. It will become a major force for the property market all over the country.

    drrao
    always confident

  • #732951
    This sounds a piece of good news to hear, if it is actually implemented then it will prove to be very helpful. Tenants often face many problems and they are not able to get a good house on rent easily, on the other hand, many times landlords are also afraid to rent even under compulsion due to doubt and lack of trust. But we know that it may take a long process and time and many objections also raised during this implementation. Still, this is a good step suggested by the central government, if the state government implements it, then its result will prove to be good.

  • #732976
    I think that the new rental law is intended to prevent, at least to some extent, the occurrence of frequent disputes and court cases between the landlord and the tenant. Each state has its rent laws. Yet the number of court cases has been rising for ages. Under the present law, when renting a house in Kerala, the landlord buys the rent for 3 months in advance. Then the tenant has to pay monthly rent every month. Some ask for a rent advance of up to a year. The new law unifies it. Only 2 months' rent can be purchased in advance. Similarly, once a contract is written on stamp paper, many people do not have the habit of changing it later. In the first agreement, the term in Kerala is 11 months. But the landlord may have verbally stated that a certain percentage of increments is required. The increment is paid year after year, and the tenant stays in the same house for years, but only the first contract is only and originally written on stamp paper. By changing the contract every 11 months, the government does not receive the required fee (stamp duty). Under the new law, the contract will have to be renewed on stamp paper at the end of the term. Similarly, if the tenant does not leave the house to the landlord after the end of the contract, he will have to pay double the current rent for the next two months and 4 times the rent for the third to the sixth month and will have to face the court case.
    "Cheruthulli Peruvellam"
    small drops make a mighty ocean

  • #733054
    U.P. new laws have been implemented to avert all disputes between landlords and tenants.
    - Agreement between both of them will be mandatory.
    - The authority would issue a unique identification number and would upload all details of tenants on its website within seven days of agreement.
    - Annual hike in rent would be 5% for domestic use and 7% for commercial.
    - If the rent is not paid for two months the tenant will have to leave the room/house.
    - The rent authority appellate tribunal would have to dispose of the case within 60 days.
    - Agreement will apply to the successor of both sides in case of death.
    - etc.

  • #733190
    The rules related to the tenancy law required to be reviewed and changed as per the changing times and also in view of reducing the dispute cases between the owner and the tenant. The present Govt is trying to streamline the things by modifying the rules wherever possible within the general directive principles and it is a good sign for all the stakeholders. Many tenants were earlier troubling the owners and owners were reluctant to give houses on rent especially the rich people as they were not dependent on the income from house rents. Now due to more clarity in the rules owners will also happily come forward to rent their houses and tenants will also have more choices to select houses for themselves on rent.
    Knowledge is power.

  • #733200
    From whatever I read about the new rent rules, I also feel that the rules are drawn without giving much thinking and looks one sided more favouring the lessee and is against the landlord.
    There was such a situation in Kerala till a few years ago that favoured the lessees. Many house owners who rented their houses had to suffer a lot to get the houses vacated . They had to spend a lot of money either in litigation , or as lump sum to the lessee and/or the political mediators . Above all they had to spend a lot of money on repairs of the damaged house once they get it vacated. So much so that people hesitated to give houses on rent.
    In many states the rental period as restricted to eleven months considering the stamp duty rates and also considering the risk of not vacating.
    Many people who construct or buy new houses as assets or for their post retirement living may not be able to stay in that house due to reason of job transfer, or other valid reasons. This they will rent to people with good reference and integrity. The advance rent amounts range from three months to six months depending on the risk perception by the landlord.

    Of late many landlords face the risk of criminal activities by the hirers. This also becomes a perennial suffering and trauma for them by police cases , witness etc.

    While on one side the government is encouraging housing sector by giving lower interest, longer terms, income tax benefits, interest subsidy etc on the other hand there is discouragement by such rent rules and increase in stamp and registration charges . State governments are increasing the property value to synchronise it with market value. But ironically they go archaic unrelated to market sentiments and realities in the case of rental sector.

    This will work against the sentiments and confidence of house owners. I concur with the thread message that because of the new rules people will be reluctant to hire their houses and this will make renting houses difficult.


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