Fair Rent Fixation in India

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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.
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Fair Rent Fixation Process

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