• Landlord to deduct 10% of the rent amount for previous year

Hi,

I am staying in a rented house for last 22 months.Now I have decided to vacant the house.(After serving 3 months notice as per agreement)

Last year, that is, completion of 11 months, my landlord has not informed us to raise 10% of the rent.
Now, while vacating the house, they want to deduct that 10% of the rent amount from our deposit money.
As per the agreement, mention below:
"The duration of Rental agreement shall be for a period of 11(Eleven) Months commencing from 01-03-2014, after the expiry of the tenancy period there would be a hike of 10% in the rent in case the Tenants desire to continue in the same premises upon such terms and conditions as the parties mutually agrees."

Want to know, do we have to agree on this?

Please suggest.

Thanks.
Asked 9 months ago in Property Law from Bengaluru, Karnataka
Religion: Hindu
you have continued after the lapse of first 11 months, therefore you are liable to pay rent for the next 11 months @ 10% of the previous rent. therefore if you have not paid, landlord is right in deducting this from the security deposit amount and paying you the rest.
Kiran N. Murthy
Advocate, Bangalore
765 Answers
50 Consultations
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1) on expiry of earlier agreement you have entered into fresh agreement with the landlord 

2) landlord can charge ten per cent only if it had been agreed with consent of parties 

3) since you have not given your consent landlord cannot demand 10 per cent increase in rentals 
Ajay Sethi
Advocate, Mumbai
23116 Answers
1214 Consultations
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1) rent can be increased by 10 per cent only with mutual  consent of parties . 

2) in your case you kept on paying old rent and landlord never raised a grievance . 

3) landlord cannot demand 10 per cent increase and deduct same from your security deposit 
Ajay Sethi
Advocate, Mumbai
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1214 Consultations
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Hi 
Actually the owner has waived off his rights when he did not collect the increased rental in the first three months it became due. Moreso in your case, he did not exercise his rights even after 13 months. in addition he is bound by the law of limitation (90 days is the limitation for 11 months tenancy)/
So the owner cannot exercise his right for receipt of increased rental when the security deposit to be refunded. Security deposit is not to be adjusted towards rental dues without the written notice to Tenant. 
So no need to worry at all. 
Your owner is bound to give you your full security deposit 
Rajgopalan Sripathi
Advocate, Hyderabad
869 Answers
43 Consultations
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The rent agreement expired on 1.3.2015. It is your case that you stayed for 24 months. Hence, in accordance with the agreement the landlord has the right to deduct the enhanced rent from the security deposit. No information of hike and the intention to collect it has to be given if the agreement itself is self explanatory.
Ashish Davessar
Advocate, Jaipur
18057 Answers
445 Consultations
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Want to know, do we have to agree on this?
You have stated that you have stayed there for 22 months and now you have decided to vacate the premises.  Whether you paid the rent at 10% enhanced rate after expiry or at the time of automatic renewal of rent agreement ?
I presume that the landlord did not insist on the enhanced rent at that time and he had been collecting the originally fixed rent alone so far without bothering about the clause or condition now being quoted.
In fact the clause says that  "Tenants desire to continue in the same premises upon such terms and conditions as the parties mutually agrees.", 
by which it can be interpreted that the landlord was not interested in hiking the rent hence he did not insist upon the hike in the rent at that time whereas the claim now being made is vexatious and illegal.   He cannot impose the condition on retrospective effect especially when you notified him that you would vacate the premises. 
If he is not coming to amicable solution then you may issue legal notice to him demanding the return  security deposit amount illegally held by him beyond the date of vacating the rented premises. 
You can drag him to civil court or consumer court for recovery and other costs. 
T Kalaiselvan
Advocate, Vellore
13931 Answers
127 Consultations
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What does this mean?
I have stayed in the premises for 24 months and landlord had never asked to hike 10%.
What it relates to the above agreement?

This is a general clause which every landlord impose at the time of making rental agreement.  If they are very serious and strictly following the condition, they should have implement the condition as and when it became due, a retrospective implementation of the clause at this stage shall be considered as illegal, you can challenge it by issuing a notice and following it by a litigation. 




Answers to your further questions which  are on the same lines:


If the house owner had kept quit for all these months, it clearly indicates that he was not interested in the hiked rent though he imposed a condition to that effect in the rental agreement. Further, he remained silent on this issue for more than 2 years and never asked or demanded the same though you were ready to pay the rent at the increased rate.  Therefore he cannot execute the same while the fault is in his side and it can be termed as an illegal act, if he is not releasing the security deposit amount after statutory deductions alone, he may be dragged to court for recovery of the same and for the costs for mental agony too. 

T Kalaiselvan
Advocate, Vellore
13931 Answers
127 Consultations
5.0 on 5.0

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