What is Fair Rent Fixation?


Fair Rent, which has different interpretations in different states, deals with the subject of rent that is fair between a landlord and tenant in a particular state. For example, as per the Tamil Nadu Rent Act, fair rent in residential buildings is fixed at a maximum of a 9% gross return each year on the cost of the building. For commercial buildings, this number is fixed at 12%. There are similar laws enacted in all Indian states, to ensure that landlords cannot get away with exorbitant rates or unnecessary increases in rent from year to year.

What do rent control acts cover?

  • Such acts set price controls on the renting out and leasing of buildings, both commercial and residential,
  • They fix rent at a particular rate,
  • They provide legal recourse to tenants in case they are being forced out by landlords for dubious reasons,
  • They dictate certain duties to landlords with regard to the facilities in the building, as well as its maintenance,
  • They safeguard the rights of landlords in case a particular tenant is causing damage to the property or unable to pay the rent,
  • They safeguard the rights of landlords in case the premises needs to be recovered.

Fair Rent Fixation Process


Understand the Requirement

Our in-house lawyers will first understand your requirement. Any opinion can be given by our in-house team. We handle matters in Delhi NCR, Mumbai, Chennai, Hyderabad, Bangalore and Pune.

Connect You To Lawyers

In case you require lawyers to attend to your matter, we can also connect you with experienced lawyers in the cities mentioned above.

FAQs on Fair Rent Fixation

Yes, in most states, it applies to both commercial and residential buildings. There may be exceptions, though. In most cases, it does not apply to tenants with a large paid up capital.
No, it will not apply in this case, as the relationship will be governed by the contract instead. It could, however, apply if the rental agreement expires.
Yes, of course. The Act will allow landlords landlords to renovate their buildings, so long as it needs reconstruction.

Why Vakilsearch


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Just tell us a few details about your brand and we'll process your application. In three working days, you'll be ready to use the symbol alongside your brand name.

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We make your interaction with government as smooth as is possible by doing all the paperwork for you. We will also give you absolute clarity on the process to set realistic expectations.

160 Strong Team

Our team of experienced business advisors are a phone call away, should you have any queries about the process. But we'll try to ensure that your doubts are cleared before they even arise.

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