HOUSING

LEGISLATION

SUBMIT BY:
NAME SHIVANI
B.ARCH.7SEM
RTIAD FBD

Housing
The housing industry of India is one of the fastest growing
sectors. A large population base, rising income level and rapid
urbanization leads to growth in this sector. In the Federal
structure of the Indian polity, the matters pertaining to the
housing and urban development have been assigned by the
Constitution of India to the State Governments. However, the
Union government is responsible for formulation and
implementation of social housing schemes. Our section on
housing highlights various initiatives and schemes implemented
by government for rural, urban and EWS housing.

The Draft Model Tenancy Act

The need to create a conducive legal atmosphere, which would help unlock
the existing properties for being rented out and for mass scale investment
in new rental housing stock, has been felt. In order to improve the
availability of rental housing across all income categories, it is pertinent
that decisions on tenancy should be determined by market forces i.e. it
should be mutually agreed between the landlord and the tenant rather than
be specified by law (as standard rent under existing rent control laws). The
Model Tenancy Act proposes to establish a framework for the regulation of
Tenancy matters (residential and commercial) and to balance the rights and
responsibilities of landlords and tenants including a process of fast
adjudication process for resolution of disputes.

Rental leases generally last for 12 months, although many landlords

opt for an 11 month lease to avoid rental control laws . Rental leases
can usually be easily extended or shortened if negotiated with the
landlord in advance. Most rental leases require a minimum occupation
period equivalent to the length of the lease. Landlords will usually ask
for a security deposit of up to 10 months rent, which will then be fully
refunded when the rental lease expires and the accommodation is left
in good condition. To protect against fraud and ensure return of the
security deposit, the tenant should get the terms in writing and a
receipt from the landlord. If the tenant vacates a property early, the
landlord should be given two to three months notice, or as stated in
the rental agreement. Landlords will usually expect the tenant to either
pay the remaining months of the lease or forego the security deposit. A
tenant can choose not to opt for a written rental agreement and be
given the freedom to leave at any time, at the risk of losing the security
deposit.

Paying the Rent

Rent is usually paid with cash or a cheque issued by an Indian bank. Bank
transfers are not common in India, and most landlords do not accept this
as a form of rent payment. Paying guest, serviced apartments and other
short-term accommodation is paid for on a daily or weekly basis. Longterm accommodation is almost always paid monthly.

Utilities
Landlords often include essential utility connections such as gas,
electricity and water in their rental agreements. A landlord may include
the rate in the monthly rent, or if an electricity connection only is
included, then it is the landlords responsibility to provide the electrical
card with the meter readings for the tenant to pay separately.
The same applies for water connections, depending on whether the
accommodation is supplied with public water or groundwater from
private bore wells. For a gas connection, it is the landlords
responsibility to provide gas cylinders.
Phone, television and Internet connections are not usually provided by
landlords. They are the tenants responsibility.

Other Regulations
Sometimes a landlord will include certain lifestyle restrictions in a
rental lease. The most common, especially in south India, is that nonvegetarian food cannot be prepared in the accommodation.
Subletting is not permitted unless with the landlords written consent.
In most cases, such terms and restrictions in a rental lease can be
easily negotiated with the landlord.
Landlords often take marital status into consideration when screening
potential tenants. Bachelors and unmarried women may find it
difficult to find accommodation without another persons formal
recommendation or testimony of good character. Accommodation
specifically for bachelors is listed in print and online. Many landlords
are still reluctant to rent accommodation to single women regardless
of nationality.
A landlord may try to evade income tax payments and rental control
laws by insisting on a verbal or informal agreement without an official
rental lease. Accepting an informal rental agreement makes it
extremely difficult to get official proof of residence. For new
immigrants into India, a written rental lease is often the primary proof
of residence used to obtain basic necessities like a Permanent Account
Number (PAN Card), electricity, water, gas, phone and Internet.

Rental Control Laws

Rental control laws have been passed by each of the Indian state
governments to prevent landlords from overcharging tenants and to
protect tenants from sudden or unfair eviction.
These laws set a maximum rental rate and outline the specific
circumstances in which a tenant can be evicted, such as subletting
without permission, failure of payment or poor maintenance of the
accommodation. Landlords must abide by these strict laws when they
rent accommodation with a 12 month lease. Most landlords avoid rental
control laws by either drafting 11 month leases or encouraging informal
or verbal rental agreements.
For a tenant with a 12 month lease, a rent rate at or below market value
is guaranteed. But it may be difficult to break the terms of the lease
should the tenant have to leave early.
An 11 month lease gives both landlord and tenant more flexibility. The
landlord can set the rent and terms according to the current market, and
the tenant is less bound by the lease

REFERENCES
http://www.globalpropertyguide.com/Asia/India/La
ndlord-and-Tenant
https://www.angloinfo.com/india/how-to/page/indiahousing-renting-accommodation-rental-agreements
http://mhupa.gov.in/User_Panel/UserView.aspx?TypeID=1280
Select committee report pdf