Theme: Rent

Security Deposit

Security deposit is taken by the landlord/licensor since during the rent period as a tenant/licensee you are going to be in possession of his property. It is only returned when you are handing over the keys to the landlord/licensor while vacating the flat. The landlord/licensor would usually inspect the house for any damage.

Negotiation of Security Deposit

There is no specific law or regulation that determines the amount of the  deposit a landlord/licensor can take. The amount is usually negotiated when the agreement is being made. The security deposit is taken by the landlord/licensor for the following purposes :

  • To recover any costs incurred due to any damage caused by you during the rent period
  • To recover unpaid rent or utility bills.
  • To use it as leverage to evict tenants/licensees.

Amount of Security Deposit

In some cities, like Delhi and Mumbai, it is a practice to take 1 to 2 months of rent amount as a security deposit, and in some others, like Bangalore, the amount taken as security is almost 10 months of rent.

Some landlords/licensors even increase the security amount when the rent increases at the end of an 11 months agreement.

Since there is no law regulating security deposit, it is all based on your capacity to negotiate and a sense of good faith between you and your landlord/licensor.

Police Verification Process

While renting out their property, landlords/licensors are required by law to get police verification of their tenants/licensees done. This is not optional.

This process is done mainly for security reasons, so as to verify your background and check the details of past residence/family/criminal record (if any) etc.

If they do not comply with this process while making the rent/lease agreement, the owner can be punished jail time and/or fine. However, no action will be taken against the tenant.

There are two ways, you can get the police verification done. You can either approach the nearest police station and acquire a tenant verification form from them or hire a professional to do it for you for a fee. Some brokers also provide this service.

Step 1

For police verification the following documents will be taken from the prospective tenants/licensees:

  • Duly filled police verification form
  • Identification Proof – Aadhar Card, Ration Card, Driving License or Passport
  • Two Passport size photograph

The police verification form can be obtained either directly from the police station, the broker or even online.

Step 2

As soon as the owner receives these documents, they must sign the form and submit it along with the documents provided by the tenant and a copy of the lease/leave license to the police.

Step 3

The police will then verify your background based on the form submitted by the landlord/licensor. At this stage, an acknowledgment receipt will be issued to the landlord/licensor. This process can be done online for some states.

Step 4

After the process is completed, the police will then hand over a signed and attested copy of the form notifying the landlord of the result of the background check or criminal records, if any.

Eviction from rented property

Read below to know the conditions for eviction from the rented property.

Lease Agreement/Rent Agreement

If you have a lease agreement, only you or anyone you give permission to has the right to live in the rented property. However, there are certain circumstances where the landlord can evict you from the house. To do so, the landlord must make an application to an authority under this law called the Rent Controller, to evict you.

Some of the reasons for which a landlord can apply to evict you if you have a rent/lease agreement are mentioned below:

  • You have not paid rent for two months after receiving a demand notice from the landlord.
  • You have sublet the house, either in part or full, to someone else without the consent of the landlord.
  • You have used the house for a purpose other than that for which you rented it, and in this process caused public nuisance, damage to the premises, or harmed the interest of the landlord.
  • Neither you nor your family members have been living in the house for 6 months or more. (If you have rented a house for residential purpose and are using it for commercial purposes, then it will be counted as not living in the house)
  • You have caused substantial damage to the house.
  • The landlord wants to repair, rebuild or reconstruct his property, but cannot do it with tenants living there.
  • The house has become unsafe for human habitation and the landlord must carry out the repairs.

It is important to note that the reasons for eviction may differ from state to state. But largely the principles of eviction stay the same. The landlord must have a reasonable ground within the bounds of the law to evict you. If you feel that you have been unjustly evicted by your landlord, please contact a lawyer for further help.

Leave and License Agreement

A leave and license agreement will have a provision for the licensor (person giving out the property) to give a one month notice to get the licensee (person staying in the property) to leave their property. There are no other protections available under the law for this type of agreement unless explicitly mentioned in the contract.