Here are some guidelines that allow you as landlord or tenant to work out a deal that’s fair and does not favour a single party
Majority of cases between landlords and tenants centre on the rent. In most cases, you will hear landlords complaining that rent is grossly inadequate while the tenants hotly contest the rent hike, calling it unfair.
IMAGESBAZAAR The Supreme Court of India has recently laid down certain illustrative guidelines in the case of Mohammad Ahmad and another vs Atma Ram Chauhan and others (2011). They touch upon certain fundamental aspects of the landlord-tenant relationship. In laying down these guidelines, the object of the apex court was to encourage a healthy negotiation between the parties and reduce litigation at all levels.
Here is an attempt to explain some of the guidelines: Rent fixed should be just and adequate, keeping in mind factors like location, accessibility, type of construction, parking facilities of the property, etc. To ascertain the proper rent payable, parties shall also be at liberty to avail services of an official valuer or any other agency having expertise in the matter. If the rent of leased premises is too low in comparison to market rent (fixed almost 20-25 years ago), then the present market rate should be worked out either on the basis of a valuation report or reliable estimates of rentals of property in surrounding areas that have been leased recently. The rent must be enhanced by at least 10% after every three years of the term of the lease, or enhanced according to the terms of the lease deed. If the tenant is duly paying the prevalent market rent, as assessed and fixed between the parties, the landlord shall not be entitled to bring any action for eviction against the tenant for a period of at least five years. Thus, for a period of five years the tenant shall enjoy immunity from being evicted subject to proper and timely payment of rent. Any major structural repairs in the rented premises should be carried out only after obtaining prior permission of the landlord in writing. Also, adjustment of the amount spent on such repairs will have to be worked out between the parties. Day-to-day maintenance of the premises shall be carried out only by the tenant, and money spent by the tenant for such maintenance shall not be reimbursed by the landlord. It is not usual to find tenancy agreements that are severely lopsided — either in favour of the landlord or in favour of the tenant. Following these guidelines when negotiating terms of a tenancy agreement will enable the parties to arrive at a mutually agreeable arrangement that is fair to both sides.