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.
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