Is an Agreement Necessary Between Tenant and Landlord?

In Chennai, more tenants are present compared to other cities, and the rental rates are also higher. Consequently, rental disputes are more frequent in Chennai.

Issues in Chennai:

In Chennai, many houses are rented without basic amenities, charging high maintenance fees, and exorbitant electricity charges for houses without separate electricity connections. Such disputes between tenants and landlords are common due to the lack of legal clarity.

To avoid conflicts, it is essential to have a rental agreement. This document can resolve many issues, as it specifies the rent, maintenance charges, electricity bill, whitewash responsibility, and advance payment. Without an agreement, disputes can arise over advance amounts or responsibilities like whitewashing the house.

Rental Agreement:

A rental agreement should be made on a ₹20 stamp paper, purchased from an authorized stamp vendor. The agreement should be filled out with mutual consent and include the permanent addresses of both parties.

Duration and Renewal:

Typically, rental agreements are made for 11 months and can be renewed every 11 months. Rental agreements exceeding 11 months need to be registered at the registration office, which is why most rental agreements are for 11 months.

Advance Payment:

There is no clear definition for the amount of advance payment, which varies from city to city. In Chennai, some landlords ask for five months' rent as an advance, while others may ask for ten months' rent. The advance amount is usually determined based on negotiation skills.

Rental Rate Increases:

Rental rates keep increasing, and tenants often spend half their salary on rent. If the rent is unreasonably high, tenants can approach the court. For example, if a tenant is paying ₹10,000 rent while nearby houses have significantly lower rents, they can seek legal intervention.

Receipt for Rent Payment:

Tenants must obtain receipts for rent payments, which are available in stationery shops. If the landlord's rent demands are unreasonable, tenants can file a case in the small causes court at the Chennai High Court complex. Those in other districts can approach the Munsif court.

Utilities:

Landlords cannot cut off essential services like water and electricity. In such situations, tenants can file a case in the civil court, which will be promptly addressed. If tenants face losses due to such disturbances, landlords are required to provide compensation.

Having a clear rental agreement is essential for avoiding disputes and ensuring a smooth tenancy experience.