• Rate of increment of house rent

I stay in a rented house at Chandannagar in West Bengal. My agreement was for 11 months and it was done in the month of July, 2017. So after this month (i.e., in the month of May, 2018) my agreement will be completed. Now my landlord is interested to increase the rent by 5% (each year). It is too much for me. Is it at all possible according to act to increase rent 5% per year?
Asked 2 years ago in Property Law from Chandannagar, West Bengal
Religion: Hindu

Yes, this is permissible.

Vibhanshu Srivastava
Advocate, New Delhi
8753 Answers
152 Consultations

5.0 on 5.0

Hello,

If there was a term in the lease agreement for increasing the rent each year then you will have to abide by the same.

you may talk mutually to the land lord and ask him to not increase the same or consider the percentage at which he is increasing.

Regards

Anilesh Tewari
Advocate, New Delhi
17403 Answers
280 Consultations

5.0 on 5.0

Yes statutorily it is correct to increase 5% rent.

Shubham Jhajharia
Advocate, Ahmedabad
22882 Answers
93 Consultations

5.0 on 5.0

Dear Sir,

He cannot increase if there is no clause in the original agreement. Stay in the house and file a suit for permanent injunction as to not to evict you and not disturb your possession except due course of law. You have not violated any of the conditions of rent agreement and you cannot be thrown at the whims and fancies of the owner. Please see the following information and fight.

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Bitter PIL for landlords, a boon for poor tenants

Petitioners, Dove Drive Without Borders Foundation approached the court contending that tenants in the city have absolutely no bargaining power during negotiations with the landlord for the quantum of money to be paid as security deposit.

Extortion via high deposits demanded as ‘security’ bonds by landlords in Bengalurumust stop, says a group of petitioners — newcomers to the city and good Samaritans— have teamed up to protect the interests of tenants house-hunting in the city. The activists have filed a Public Interest Litigation in the Karnataka High Court addressing the interests of people who do not own homes but must rent housing under one-on-one tenancy agreements with landlords. Such laws already exist in states such asTamil Nadu and Bihar, says Wasim Memon, founder of The Drive without Borders Foundation.

The Foundation, a citizens’ movement that started with the objective of safeguarding the rights of motorists and road users in India and crusaded for a single rate of road tax in all Indian states, is leading the charge.

Waseem Memon said tenants started contacting him on their Facebook page seeking help when faced by Bengaluru’s inequitable rental market. He, a Hyderabadi himself, decided to do something about it.

In the absence of standardised rates for security deposits, it has become customary for landlords to insist upon high security deposits equivalent to 10 months’ rent. For example, a residential property with a monthly rent of `10,000 would command a security deposit of a lakh, while a property with the monthly rent of `30,000 would mean shelling out a proportionate deposit of `3,00,000. This earns the landlord handsome returns through interest earned on the deposits.

The problem is compounded when some homeowners arbitrarily and with impunity get away with deducting amounts of their choosing, posing flippant and vague causes such as ‘damage’ or ‘repainting charges’ as reasons for the deductions.

This unfairly raises the total layout for rent, and results in income loss through the loss of interest for, often, hard-pressed youngsters and recent economic immigrants.

Priyanka Patel, a young professional who started living in a flat in Marathahalli, shelled out `1.5 lakh around two years ago as a security deposit and was faced with no choice but to give away `56,000 to her London-based landlady, though she had agreed to only pay `30,000, ostensibly for “repainting” the property.At one time, the landlady threatened to keep their deposit money if she had any male visitors, even relatives, to the house.

Though the problem extends across all income classes and communities, the unsanctioned practice harms vulnerable groups of, often, young men and women who move to live in Bengaluru to be part of its booming electronics and IT industries, the region’s largest employers.

“Young immigrants and couples in junior positions in jobs who are new to the city are also badly-affected,” says Memon who is leading the group of activists. “They lose lakhs of rupees to landlords each year in the guise of one imagined problem or another. Going to court to establish the nature of the wrongdoing by a landlord is difficult, expensive and time-consuming and not considered a viable option by busy city dwellers. So, in the absence of legal recourse, tenants have little option but to bear the financial burden.”

The practice has become rampant and reached near epidemic proportions, he says: “Keeping this in mind, the Central Government’s draft Model Tenancy Act (first in 2011 and a revised version in 2015) seeks to update the law relating to landlords and tenants across the nation. It is a model law directed for the consideration of state governments. it will provide for a cap on security deposits for tenancy agreements at three months’ rent.”

The statute, if put in place, also seeks a retrospective provision where tenants who have their cash — greater than 3 months’ rent — stuck with landlords may ask for it back, and expect it to be returned within a period of 15 days. The citizens’ group, Drive Without Borders, a Facebook group, has sought a preliminary response from the high court within 21 days of the receipt of the petition.

Dove Drive Without Borders Foundation

S2, 2nd Floor, Olive Garden No.74, Benson Cross Road,

Benson Town Bangalore Bangalore KA 560046 IN

Kishan Dutt Kalaskar
Advocate, Bengaluru
4962 Answers
153 Consultations

5.0 on 5.0

It is for you to decide whether you are willing to pay 5 per cent increase rentals

2) if you don’t want to pay then search for alternative accommodation

3) inform your licensor that you are willing to renew agreement but only at the same rentals only

Ajay Sethi
Advocate, Mumbai
72059 Answers
4334 Consultations

5.0 on 5.0

1. This is a private contract between you and your landlord

2. You are not a statutory tenant who has protection of statute against rent increase

3. Generally for residential premises the rental increase on renewal is 10% and your landlord is asking half of that

4. If you are not comfortable with the increase in rent you can always speak to your landlord and agree on a mutually agreeable increase

5. There is nothing you can do legally

Yusuf Rampurawala
Advocate, Mumbai
4858 Answers
29 Consultations

5.0 on 5.0

Sir, since your agreement is leave and licence agreement and not tenancy agreement, the agreement comes to an end after 11 months. Your landlord can ask for any amount as a fresh agreement needs to be made, and the increment is not governed by any law. Please call for more details.

Abhishek Dutt
Advocate, Kolkata
31 Answers

4.0 on 5.0

The landlord is very well within law to increase the monthly rent by 5% once in a year provided the rental agreement has a condition specified in it for renewal of agreement and also he provides a proper rental receipt for it.

T Kalaiselvan
Advocate, Vellore
61997 Answers
800 Consultations

5.0 on 5.0

1) Its not necessary to increase rent every year it can be negotiated with landlord regarding this. Rent can be increased fron 5 - 15% on current on going rent.

Ganesh Kadam
Advocate, Pune
9026 Answers
74 Consultations

4.9 on 5.0

Firslty, there is a law with relation to the percentage of increase of rent in the state rent act, and it varies from state to state.

Secondly, but, as it is only for 11 months, now it may be good for the landlord but not for you for sure to get such rise in the rent.

Thirdly, and also there are certain other conditions also which you need to be looked at if do not want to get the rise in the rent by that percentage.

Sanjay Baniwal
Advocate, South Delhi
5036 Answers
11 Consultations

5.0 on 5.0

Dear Client,

Under law automatic increase of rent 5 % every three years.

But this cannot to be in your case, as there will be new agreement, and terms and conditions agreed between parties,

If u not agree, LL will not renew Agreement.

Yogendra Singh Rajawat
Advocate, Jaipur
16743 Answers
21 Consultations

4.6 on 5.0

The agreement mentions the rate of increase for next year. It is mutually decided if you can't afford you can give notice and vacate the premises.

Prashant Nayak
Advocate, Mumbai
16701 Answers
30 Consultations

4.6 on 5.0

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