Yes, if the person renting the property to you has a general power of attorney from the owner, then he can sign a rent agreement on behalf of the owner.
Theme: Rent
What is Police Verification with respect to renting an accommodation?
Police Verification happens when the police verifies your identity and makes sure that you do not have any criminal record. While renting a house, it is the duty of the landlord to do police verification under the law and make you fill a “police verification form”, otherwise he will be punished. Sometimes even brokers help landlords to do the police verification but you do not have to do it yourself or pay any money for the form.
Is it compulsory to get the lease deed registered?
Yes, if your lease deed is for 12 months or more, then it is compulsory to get it registered. Otherwise, if it is less than 12 months, even though compulsory registration is not required under the law, it is better to get it registered in case you need to prove your address for any reason such as passport verification, Aadhar verification etc.
Why is it important to get rent receipts from the landlord?
It is always a good practice to get rent receipts especially if you are paying rent in cash. Taking rent receipts can have advantages such as claiming tax exemption while filing your return (if you are eligible), using it as evidence if a dispute arises from the rent agreement, etc.
Are online transfer receipts proof of payment of rent?
If you have paid your rent online, i.e. through a bank transfer, the receipt of the bank transfer would not be counted as a rent receipt. It will only be a proof of your online transaction.
If I want to use my rented premises to start a business, do I have to inform my landlord?
You have to take the permission of the landlord if you have rented a premise for residential purpose but intend to use it for business or commercial purposes. However, if you have rented it specifically for business purposes and the same is mentioned in your agreement, then you do not need to inform the landlord/licensor.
I am going to travel for 3 months. Can I sublet my rented apartment to someone else for those 3 months?
No, you cannot sublet your rented premises to anyone, unless you have the express consent of the landlord. If you sublet without taking the permission of your landlord, you may be evicted.
What will happen if I do not give my landlord notice before leaving the rented house?
The notice period is given in your agreement. If you do not provide the required amount of notice before leaving the house, the landlord/licensor can deduct an amount from the security deposit, which will be equivalent to the notice period. For example, if your notice period was one month and you informed the landlord that you would be leaving in one week, he can deduct three weeks worth of rent from your security deposit.
The property I want to rent is jointly owned by 2 people. Do both of them have to be present at the sub-registrar or registrar’s office during registration?
Yes, both the property owners have to be present to register the written agreement along with you and two witnesses.
Is the responsibility of doing repairs in the rented house solely mine or only the landlord’s/licensor’s?
The responsibility to do the major repairs in the house are usually with the landlord/licensor and minor repairs are usually with the tenant. Usually, the assignment of responsibilities for undertaking repairs in written in the agreement.
What is the purpose of having receipts and copies of all the renting documents?
After you have signed your rent agreement, try to ask for the following receipts:
- Rent Receipts
- Security Deposit
- Brokerage
These receipts will be helpful to show the record of money exchanged between you and the landlord/broker and for tax filing and House Rent Allowance (HRA) reimbursement purposes.
It is important to have copies of the following:
- Rent/Lease/Leave and License agreement.
- Police Verification form
- Bill for utilities such as electricity, water etc.
Having copies allows you to use them as proof if you had to go to court, or as residence proof, proof of payment of expenses with the landlord etc.
Can the landlord increase my rent?
Your landlord can increase your rent at the end of your lease, but not in between. However, if it is a month-by-month lease, the landlord can give you a notice at any point and increase the rent from the following month.
During the police verification process done by a landlord, while I am renting a house, can the police come search my house?
No, if the police are coming to your house for the verification, it means that they are verifying your identity and the details you have given in the form. They will check the address and might possibly even come to your house, but they do not have a right to go around the house and inspect it.
Is it possible to use e-signatures/digital signatures to enter into a rent agreement?
No, you cannot use electronic signatures for rent agreements. Electronic signatures cannot be used for real estate contracts such as lease/rent agreements.(( Electronic signatures in India, https://acrobat.adobe.com/content/dam/doc-cloud/en/pdfs/electronic-signatures-in-india-uk.pdf))
What to do if tenants evicted without giving rent
If you are the landlord and the tenants vacated the house without paying rent, you can file a complaint to the police against your tenant. For this, you will have to go to the police station and file an FIR. You should make sure you give all the information you know about the incident and trouble you have faced with your tenant.
If you are a tenant without a lease agreement and you feel that the landlord is unfairly evicting you for non-payment of rent, please contact a lawyer for further help.
Tenant refusing to vacant house even giving notice
Even after giving notice, if the tenant refuses to vacate the property, this is a breach of contract because the tenant is violating the rent agreement. We would recommend that you contact a lawyer who can assist you based on your specific rent agreement.
If a police officer is refusing to take action on your complaint, then you can:
- Write down the complaint and send it to the Superintendent of Police. If the Superintendent feels there is merit in the case, they can appoint a police officer to start an investigation.
- Take the help of a lawyer while going to the police station. Lawyers can advocate on behalf of a person and reduce the possibility of harassment from police officers.
- Approach the District/Judicial Magistrate directly to file a ‘private complaint’. Further, if a Magistrate thinks proper investigation is not being done by the officer-in-charge of a police station, the Magistrate can certainly direct the officer to make a proper investigation and can also monitor the investigation. So, you can apply to the concerned Magistrate for monitoring the police investigation, and the Magistrate can then issue appropriate directions for speedy completion of the investigation.
You can also file a complaint against the Investigating Officer for deliberately disobeying any law which regulates the manner of conducting an investigation. Under Section 166A of the Indian Penal Code, 1860, the officer can be punished with imprisonment for six months to two years, along with a fine.
Searching for a House
Contact a Broker
When you decide to search for a house or a flat, you may need to contact a broker for the area in which you want to stay in. Brokers are usually paid only after you finalize a house and you sign the contract.
Inspect
Depending on the kind of house (furnished/unfurnished) that you want, you should physically inspect the house to see if all your requirements are fulfilled.
Some basic requirements of a house such as permanent fixtures of water supply, electrical fittings like bulbs, fan etc. should ideally be there in any kind of house you take. Try and negotiate with the landlord/licensor regarding any requirements that you have.
Token Money
If you want some time to think about whether you want to take the house, you can block it by paying token money to the landlord. Paying token money is optional and its purpose is to make sure that the landlord does not show the flat to any other possible tenants/licensee. If you have paid token money, ask for a receipt for the same.
Token money payments are a practice that is not regulated by law.
Be careful when you give the money since taking action against a landlord to get your token money back may be difficult.
Steps for Negotiation with Landlord
Steps to Take for Negotiation with Landlord
Ask for Identity Proof
You can ask the landlord/licensor for identity proof so that you can confirm that the landlord is the owner of the house or has the permission of the owner to rent the property. The purpose of asking for identity proof is to check whether the person is who they claim to be. Some of the most common identity cards used are Aadhaar card, Driving License etc. The ID card must have the picture as well as the permanent address.
Negotiate Rent and Security Deposit
Negotiate the rent and security amount with him and try to ask for the receipts for both. In some cases, the brokers can be very helpful while trying to negotiate the rent, so you can also request him to accompany you during the rent negotiations.
Negotiate Requirements in the House
While inspecting the house if you have come across any changes or additions to be made, you should tell your landlord before signing the contract. It is helpful to do it before as you will know whether the landlord is open to negotiations for the requirements you want and to assess whether you are getting your house for the best price. Make a list of repairs and installations so that your landlord can look into them.
Negotiating your Rent Agreement
Process of Negotiating your Rent Agreement:
- While negotiating you should try to first establish the identity of the person who you are going to enter into an agreement with. Having this information is important to be able to assert your rights and bargain/negotiate with the person you are entering into an agreement with. Further, if you have this information, then it will be easy for you to go to the police/court in case:
- There has been any cheating or fraud even before signing the agreement.
- There is any problem or dispute about the agreement or payments.
- While you are negotiating your agreement it is important to establish all your terms clearly and translate these terms into the written agreement as you have agreed upon verbally. Once the rent arrangement is signed:
- It cannot disputed easily. Hence, it is important to negotiate and read your agreement prior to signing it.
- If your landlord/tenant asks you for anything else which is not in the contract then you can refuse since it is not in your contract.
Precautions to be taken while renting a House
You must take certain precautions while renting a house. While trying to enter into an agreement to rent a house/flat, often the legal procedures for rent are not followed properly.
However, since it is a contract and involves an exchange of property and money it is important to understand the following while going through the processes of renting:
Your relationship with your landlord/licensor/tenant/licensee is a contractual relationship. This means that your legal relationship is based on negotiation and establishing clear terms.
However,
- If you have a rent/lease agreement then there are some protections available to you.
- These are not there for a leave and license agreement.
The principle of negotiation and establishing clear terms applies to both types of agreements, irrespective of these protections that are available.
You should ensure that you keep proof of what has been agreed upon or of any payments that have made.
This can be done by:
- Having a written copy of an agreement
- Having in writing anything discussed verbally either on paper/Whatsapp/Email/Messages (if possible) and
- Keeping receipts for any payments (if possible)
This ensures that if any person disputes any payment or agreed terms you can show proof the payment of agreed terms.
Checklist for Rent Agreement
In order to safeguard the rights of both tenants/licensee and landlords/licensor, you must ensure that you have a written rent agreement. While finalising this agreement, it is very important to read all the terms mentioned in it.
These terms not only decide your rent amount and security deposit but also covers many other important aspects such as maintenance of the house/property you are leasing, payment of relevant bills, notice period of leaving, etc.
Ensure that the following provisions are present in your agreement (lease or leave and license agreement):
- Names of Tenant/Licensee and Landlord/Licensor
- Purpose of Agreement
- Duration of Agreement
- Rent Amount
- Date of Payment of Rent
- Security Deposit Amount
- Maintenance Amount
- Assignment of Responsibility of Repairs
- List of Furniture/Fittings/Other items
- Notice for Termination of Agreement
- Notice for Landlord’s Entry into Premises
- Declaration to Abide by All Bye-laws of the Society/RWA
- Declaration to Not do Illegal Activities
- Declaration to Sub-let Only With the Permission of the Landlord/Licensor
- Courts to Approach for Dispute Resolution
- Rate of Increment of Rent After a Certain Period, if any.
- Signatures of Landlord/Licensor or Tenant/Licensee
- Signatures of Two Witnesses
Renting a House or Flat
Renting a house or a flat involves many processes and procedures. You can be taken advantage of if you are not aware of these processes or procedures. Please read the following to safeguard yourself while renting a house:
Types of Agreements while renting
It is ideal to have an agreement or contract when you renting a house or giving your house on rent so that:
- When there are any disagreements regarding money, utilities, and repairs, etc. the details of the contract would be enforceable and helpful for you.
- When you want to file a complaint with the police/court you can show the written agreement/ contract as proof.
- As a tenant/licensee, you can show your rent agreement as evidence of temporary residence.
Your rights and duties, whether as a landlord/licensor or a tenant/licensee, largely depend on the kind of agreement you sign for the purpose of renting a house. There are two kinds of agreements that are used for renting a property for residential purposes. They are:
- Lease Agreement or Lease Deed (commonly known as Rent Agreement)
- Leave and License Agreement
Leave and License Agreement
In some cities, instead of a rent agreement, a leave and license agreement is used. By using this form of an agreement, the owner of the property gives you permission to use the house for a specific purpose.
In a Leave and License agreement, the person giving the house on rent is called the licensor and the person renting the house is called a licensee.
Keep in mind the following when you enter into a Leave and License Agreement:
Tenant Protections Not Available to a Licensee
You are technically not a tenant as per law and hence you do not have certain rights. Instead, you are a licensee who has acquired a limited right to use the premises for a specific time period.
Guided by Agreement
The rights and duties of both licensor and licensee are primarily decided by the agreement. If any of the terms of the agreement are violated, it is treated as a violation or breaking of a contract, the remedy for which is going to Court to file a civil suit.
To see a sample leave and license agreement, refer here.
Please refer to this checklist to ensure you have all the essential points covered in your agreement.
Lease Agreement
A lease deed/agreement is the most common form of agreement used in many cities like Delhi, Bangalore, etc. It is also commonly referred to as ‘Rent Agreement’.
Rights Under a Rent Agreement
As a tenant, if you have signed a lease deed with your landlord, you have certain rights that you would not have in case of a leave and license agreement, such as:
Interest in Property
You have a right over the property in terms of its occupation and use since you are paying rent.
Right to Possession
You get exclusive possession to occupy the house being rented to you. This means that if the landlord has rented you a house or space, he cannot use the space assigned to you. It is for your exclusive use for the duration of your lease.
Protection from Eviction
The landlord cannot unilaterally end or shorten the duration of your lease without providing proper legal justification. You have certain protections available against eviction.
Please refer to this checklist to ensure you have all the essential points covered in your agreement.