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Rent Control Act: Everything a Delhite must know
The Delhi Rent Control Act of 1958 was drafted by the Indian government to protect the rights of city tenants and landlords. The Delhi Rent Act strives to offer affordable housing to all levels of society, keep rent increases in line, and protect renters from unjust eviction.
All citizens living within the boundaries of the New Delhi Municipal Committee and the Delhi Cantonment Board is covered by the rent laws. The Delhi Rent Control Act outlines the rights and responsibilities of renters and landlords toward one another as well as the Delhi government.
Let’s take a look at some of the key provisions made with the Delhi Rent Act 1958
Provisions under Rent Control Act
- ‘Landlord’: An entity who receives the rent by himself or on behalf of someone else who takes care of the property.
- ‘Tenant’: An entity who pays rent when he/she has occupied the rented property during the tenure of the rent agreement. Tenant also comprises sub-tenants and, in the event of death, the person in possession, who is subject to the succession order.
- Exemptions: The act is not applicable to government properties.
- The rent should be paid before the 15th of every month and the tenant has a right to receive the payment receipt.
- If rent is paid on time, the landlord has no right to evict the tenant.
- A standard rate is applicable for the increment of the rent.
- As per the Section 7 (1), the landlord can increase the standard rent if the property is renovated but the increment must not increase 7.5% of the total budget included in the construction.
- The tenant has a right to sub-let the rented premises.
Latest Amendment Delhi Rent Control Act
The Delhi Rent Act has been altered and amended numerous times since its first official edition in 1958. The homeowners' the organisation, as well as tenants in some cases, have consistently called for changes to the code. Since then, the rules and regulations of the Delhi Rent Control Act, sometimes known as the Bare Act, have been changed. Let's look at the most important modifications to the Delhi Rent Control Act of 1958.
Delhi Rent Control Act 1995
According to the law, the tenant can demand a rent agreement.
The first amendment under this Act is that it doesn’t include the tenants whose rent exceeds ₹3500/-. Such tenants have been considered under Rent Control Act 1995.
Eviction rules have been restricted thanks to recent modifications to the Delhi Rent Control Act. The renters gained rights to the property, and the most recent revisions did not impair the tenants' rights under the Delhi Rent Control Act of 1958.
Landlords were prevented from pursuing legal action against a tenant for illegal possession under Section 14 of the Delhi Rent Control Act if the lease had expired and the tenant was still occupying the premises.
Delhi Rent Control Act 2016
There was significant anxiety in March 2016 that landlords might remove tenants based on a unique provision in the Delhi Rent Control Act 1958.
There was a desire for the legislation to define comparative hardship, to remove summary procedure for the state of Delhi, and to prohibit a single landlord from filing a genuine eviction for more than one property in the same city.
The gathered parties urged that the Model Tenancy Act be amended to offer business tenants with the same benefits as residential tenants. The demands, however, were unable to take the form of an amendment.
Delhi Rent Control Act 2020
The Model Tenancy Act of 2019 revised the Delhi Rent Act of 1958 to create the Delhi Rent Control Act of 2020. The Delhi Rent Control Act has just been amended. Tenant and landlord rights were studied and detailed once more.
The goal of the Model Tenancy Act is to develop a positive, trusting relationship between the landlord and the tenant.
Registration and the formation of a contract became mandatory in order to preserve the entire real estate system and create a favourable connection between renters and landlords. A copy will be delivered to the renter as a matter of right, and a copy should also be sent to the rent control authority. The authority is in charge of keeping track of the rent and duration records.
The tenancy will be considered renewed on a month-to-month basis with the same terms and circumstances if the stipulated period of tenancy expires. A renter will remain a tenant by law under these situations, according to Section 22 of the Delhi Rent Act, 2020, and will be liable for rent contribution towards the property.
The high maximum of security costs charged by landlords against rental homes was also capped under the Delhi Rent Control Act 2020. In the case of commercial premises, a security deposit of up to two months' rent can be requested. A security deposit of up to one month's rent might be requested for non-residential property.
Challenges under Rent Control Act
Many of the norms and regulations of the Delhi Rent Act are obsolete in today's world, posing significant issues for landlords and, in some circumstances, tenants. The renters are aware of the safeguards and rights afforded them under the act and subsequent revisions. Tenants have been known to forego building their own home in order to take advantage of the advantages of renting.
The situation of premises in Delhi cries out for attention due to obsolete laws.
The various monuments and buildings that graced the city's borders were noted for their architectural splendour. The current scenario, on the other hand, is rather different. In Delhi, both commercial and residential properties crave the attention of their owners. Because of the redundant restrictions, the proprietors have practically given up on maintaining a real estate business. For example, the landlord has the right to raise the rent every three years under the Delhi Rent Control Act. The increase in the base rate, on the other hand, is so small that the owners have given up hope of keeping the property. As a result, a rise in the poor quality of residential and commercial properties occurred in Delhi.
The anomalies in the code can be perplexing at times, and this has resulted in numerous court cases, some of which have gone down in history as landmark cases for the Delhi Rent Control Act 1958. The challenges of the Delhi Rent Control Act, according to the landlords, are as follows:
1. Setting the Rent
2. Evicting a tenant from one's own home
3. Low revenues and high maintenance
Let’s scroll through the most prominent reasons for these petitions and what made them important.
Petitions over Delhi Rent Control Act
The most common grounds for petitions against the Delhi Rent Control Act 1958 is that it establishes a standard rate, which is insignificant given the location. The renters benefit from the outdated laws enacted in 1958. However, the landlord has the right to evict under specific circumstances. These circumstances are highly contentious, and there have been numerous petitions for change. In addition, the Transfer of Property Act creates a significant loophole in the Delhi Rent Act. The Delhi Rent Act has been revised since 1958, and the amendment came after a series of historic cases caused the judiciary to ruminate for years. The Delhi Rent Act, 1958, was changed in 2020, according to the most recent judgements on the Delhi Rent Control Act.
The following are some of the pivotal cases that have had an impact on the original framework:
Landlord’s the requirement under Rent Control Act
Section 14 of the Delhi Rent Control Act of 1958 states: Tenants' eviction
If the landlord has a legitimate need for alterations or additions to the property, the tenant can be evicted.
Without legal reasons for eviction, a landlord has no right to evict a tenant. If one or more of the following grounds are met, a landlord must file a case with the Controller Authority to evict a tenant:
1. The renter fails to pay rent even after being served with an arrears notice for two months.
2. Subletting the property without the landlord's permission.
3. The premise is a residential property, and neither the tenant nor their dependents have lived there for more than six months. In such circumstances, the tenant must be served with a Notice for Recovery of Possession. The landlord might file for eviction if the property has been empty for more than six months.
4. Under the Delhi Rent Control Act, if the landlord does not have any other adequate residential space, the space becomes a genuine Requirement of Landlord.
5. Violation of the residential tenancy terms with the commercial tenancy terms or vice versa.
6. The property represents a safety threat, and the landlord has a legitimate repair demand that cannot be met while the property is rented.
7. If the landlord has a legitimate need for a change or addition to the property.
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