Rental Agreement and Legal Norms in India

The tenancy agreement is a legally binding contract between the tenant or lessee and the owner or the lessor. It is advisable to always sign a tenancy agreement, even if you are renting from a known person. That way, you are clear on who is responsible for what. There are three types of tenancy in India viz.

1. Assured Short Hold Tenancy: All private sector tenancies are deemed to be short hold tenancies unless the agreement states otherwise. This was done to encourage more private lettings, since a owner can repossess the property if needed.
- No minimum duration required
- The agreement requires only that the duration of term, amount and frequency of rent payments be stipulated
- Owners usually have right to raise rent, normally at end of the year
- If a owner wants to repossess the property, he must give two months written notice to tenant.

2. Fixed Term Assured Tenancy: Owner and tenant agree a rent amount that will stay the same through the term of the contract unless both agree to change it. The owner can raise the rent at the end of the fixed term only if he gives the tenant written notice at least one month prior to initiating the increase.

3. Contractual Periodic Tenancy: Tenants have no right to a fixed fair rate for rent, but they also have no fixed term, so can stay on indefinitely.

Rights & responsibilities of Tenant: Every agreement is different, but this sets out the basic rights and responsibilities that should be included in your agreement.

As a tenant you are responsible for:

- Paying Rent on time
- Repairing damages caused by you or those living with you
- Paying household bills (electricity, water, etc)
- Keeping house secure (setting alarm, locking doors, etc.)
- Keeping house clean and tidy
- Returning property in same state as you found it at beginning of tenancy
- Insuring your own content against damage.

and your have right to:

Enjoy the property. Essentially means the owner cannot come in unannounced. He also cannot...

- Change locks without giving you warning and new keys
- Cut off utilities
- Tamper with your mail or possessions
- Verbally or physically threaten or abuse you
- Enter your home while you are out
- Neglect the property
- Prevent your friends from visiting.

Use the property as a tenant, and treat it as home (run as office if owner permits, do not use for illegal activities, etc.)

Rights and responsibilities of the Owner: While every agreement is different, the list below is a brief overview of the Owner's terms.

Owner is responsible for:

Repairs and maintenance of property (he cannot charge tenant if damage not caused by tenant)

- Insure property is clean, tidy, and safe when tenant moves in
- Insure property is secure - locks and alarms installed
- Utilities are good repair - plumbing, heating work
- Property is in good working order
- Fabric and structure of building is safe and sound

Informing tenant he or she needs to enter home (24 hours notice is usually considered sufficient)

Returning tenant's deposit at the end of the tenure.

Owner has right to:

- Enter property with appropriate notification
- Collect overdue rent payments
- Seek possession of the property if tenant has damaged it.