The Legal Aspects of Rent Control

The Legal Aspects of Rent Control :

Under the Indian Constitution, housing is a state subject. Thus, the enactment and enforcement of rent control laws is the responsibility of the individual states. While this is in accordance with the federal nature of the Indian Republic, it makes a comparative analysis of the rent control laws that much more difficult.

The common thread running through almost all rent control Acts and legislations is that they are intended to serve two purposes:

1. To protect the tenant from eviction from the house where he is living except for defined reasons and on defined conditions; and

2. To protect him from having to pay more than a fair/standard rent.

But most acts also confer upon the landlord the right to evict a tenant who is guilty of certain specified acts and also when the landlord requires the house for his own personal occupation. There are various grounds under which a landlord can evict a tenant. The most common of these are listed below. There are also some states, where one or more of the provisions given below don’t apply.

1. Breach of condition of tenancy 2. Subletting 3. Default in payment of rent for specified period 4. Requirement of building for own occupation 5. Material deterioration in the condition of the building

The landlord is required to specify the exact provision of the relevant act under which he is seeking the eviction of the tenant, to enable the tenant to take any remedial action provided in the act.

The whole idea of a rent control act is to control and regulate eviction of tenants and not to stop it altogether.

-Hyderabad Tenants Blog

Rent Control Acts

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Rent Control Acts

People staying in Hyderabad from the past 10 years have all witnessed the rapid growth of thePearl-city to Cyber City. There are many issues/challenges that the city and the people living in the city face in this continuous development phase. The concern here is we always fail to win over the issue or challenge we face and just try to by pass for the hour. And that’s the reason we are still developing.

Well, Lets address one such issue the city and the people of the city are facing, which is the motive behind this blog: Unsystematic increase in Rents – This is a mammoth problem in any city which is accelerating in the phase of development. Lets try to find out a way to control this problem by answering a few important questions.

How to control the increase in rents? Is there any Law or Act which can help us out? If yes what does it say? How can it help? What are its flaws?

I have tried to find answers for the above questions and succeeded in getting substantial information.

Below is the information regarding the Rent Control Act.

What is rent control?

The practice of imposing a legal maximum (rent ceiling) upon the rent in a particular housing market, below the equilibrium rent is called rent control. If this maximum is above that market’s equilibrium rent (different rental housing markets may have different equilibrium rents), then the control is null and void. But if the rent is set at a level below the equilibrium rent, it will necessarily lead to a situation of excess demand or shortage. In a free market, prices (here, rents) would rise automatically filling the gap between the demand and the supply. But rent controls prevent prices from rising up to the equilibrium level

Does India have a Rent Control Act?

The first rent control legislation in India was introduced immediately after the First World War in Bombay in 1918. It was followed by similar legislations for Calcutta and Rangoon in 1920. By the end of the Second World War almost all the major cities and towns in the countries were covered by rent control measures. All these acts, born out of the inflationary aftermath of the First World War, were conceived as purely temporary measures to provide relief to the tenants against the demand of exorbitant rent and indiscriminate eviction by the landlords due to scarcity of houses in the urban areas.

As in other parts of the globe, the rent control laws applicable in various states in India are different with respect to various aspects and thus, a holistic analysis, though attempted here, is difficult.

-Hyderabad Tenants Blog

Read This: The Legal Aspects of Rent Control

Hyderabad Then and Now !

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Until 4 to 5 years ago, Hyderabad was the most affordable and comfortable place to live among all the cities in India those were witnessing rapid growth and development in both size and life style. A family of four could afford a decent living if it was earning Rs.10,000/- a month. Climate is good, especially no humidity in summers unlike cities like Chennai and Mumbai. And has reasonably good places for small family outings in and surrounding the city.

Hyderabad turning to Cosmopolitan city brings many good things and few unpleasant things too. The city of Nizams had been embracing people of all cultures, from different parts of country since ages. However, off late cross culture migration has brought in some interesting and few alarming changes in the city.

As city started on top gear towards development many things have changed drastically. Many Multi National Companies of IT and various other sectors have put up their centers here providing employment opportunities to many Hyderabadis. Life style of people especially of those who belonged to economically mediocre class earlier has seen considerable drift towards positive side. Well, all this is good, good for the city, good for economy... hmm in certain sense... but then, is it really good for all? Well the answer is not one word...

People migrating from northern parts of the country had seen a standard of living here which was lot less, when compared to that in cities like Mumbai, Pune and so on. Getting an affordable place to live for rent used to be one of the most attractive factors to make Hyderabad their home.

Well, not anymore! Demand for rented houses for more and more people who are coming in, made the house rents multiply in geometric progression. A family moving form a city like Pune, who would pay a rent of Rs.10,000/- per month there in Pune, managed to get a more decent place for almost half the rent here in Hyderabad. Moreover in place of paying 1 year of rent as ‘pagdi’, all they had to pay was 2 months rent in advance. They would feel less pain or rather no pain to pay it off. Well, this is a win-win situation, both tenants and owners are happy. But then, this ease of tenants has grown the greed in owners. Hikes in rent took a pace that of light, with very few or no compensating comforts. Fellow citizen of Hyderabad is feeling the heat of this greed and there is no affordable decent place to rent.

Owner has multiple choices to lease his property out, if not a Hyderabadi, some other person would pay what he wished for. Mediators have started cropping up in these affairs and started exploiting the basic necessity of a common man, finding a shelter to live. People have to make compromises in everything like proximity to work place, safety, basic comforts like drinking water, parking space so on and so forth, but still pay a rent which touches stars.

There is no rental act that is in effect. There are no guidelines for rent hikes and no owner needs to abide by any law. And thus, there is no protection for a tenant. Now should we wait for some external force to solve this issue? Can we do something about it?

Yes first thing to start with, let us come together to share experiences, share knowledge and ideas that bailed you out. That would help some one else like us.

Objective of this Blog

Welcome to Hyderabad Tenants ** Weekly updated Brokers Free Rental Properties in Hyderabad ** Watch for Hot Rental Properties here ** Owners: Post your Property details here ** Tenants: Post your Property Requirments here ** Packers and Movers List in Hyderabad ** Do's and Dont's while taking Rent ** All about Rent Control Act **

Hyderabad a happening city...................A city of cosmo culture.............Well nourished and polished with corporate culture....................City where we can find lower,middle and High sections of people.All together its a city that competes with all major cities in india. People who are staying atleast from last 10 years know the drastic change happened in city. Small roads widen as big roads. Flyovers to accommodate day by day increasing traffic. Hi-Tech City. Amusement places,Multiplexes and Resorts etc. Begumpet Airport vacated and shifted to Shamshabad RGIA. Upcomming OuterRing Road. Altogether our Hyderabad is changed to Greater Hyderabad. This "Greater" change has greatly affected Greater Increase in Population. Greater Increase in Traffic. Greater Increase in Pollution. Greater Increase in Real Estate Prices. Greater Increase in House Rents. This leaves me in a preplexed situation wether to be happy that my city has deveoped or to worry about the greater problems it brought in. Well, let me address one of the problem the people of this city are facing because of the transformation of Hyderabad to Greater Hyderabad and that is Greater Increase in House Rents. Well "Greater" seems to be a smaller word here. 1.This blog concentrates on Improper, Un-Organised, Un-Monitored, Un-Accountable increase in House Rents. 2.This blog focuses on majority of Tenants staying in Hyderabad, who, are being exploited by the House owners and Rental Agents. 3.This blog will be the platform to share your Experiences, Sugestions and Thoughts prevaling to all sorts of Issues that are faced by TENANTS from the LANDLORDS. Thank You-Hyderabad Tenants Blog