5 Reasons That Indian Rental Agreements Are Often Biased Towards Landlords

Navigating property rental agreements in India can be challenging, with many clauses favoring landlords over tenants. As rental values surge across top cities, it's essential to understand why tenants often find themselves at a disadvantage.

Ghar explores five key reasons highlighting this imbalance. 

1. Intrusive Clauses in Rental Agreements

Tenant Privacy Concerns: Many rental agreements include clauses that allow landlords or their agents to visit the premises for inspections or repairs, which can be highly intrusive. A clause might state: “The owner shall hold the right to visit in person or through his/her authorised agent(s), servants, workmen, etc, to enter upon the said premises for inspection (less than once-a-month) or to carry out repairs/construction, as and when required.” Such clauses can disrupt tenants' privacy and daily routines. An example comes from Ravi Sharma, a resident of Bengaluru, who shared his frustration with frequent and unannounced visits from his landlord's workers.

2. Control Over Property Use - Restrictions and Responsibilities:

Standard rental agreements often include clauses that restrict tenants from creating sub-tenancies or making alterations without the landlord's permission. Advocate Arjun Mehta, a legal expert, explained that these clauses are designed to protect the property but can severely limit tenant freedom. Additionally, maintenance and repair responsibilities often shift to tenants, absolving landlords of upkeep costs.

3. Legal Protections and Their Challenges - Rent Control Act 1948:

While the Rent Control Act 1948 provides some protection for tenants against exploitative clauses, its enforcement can be challenging. This act mandates landlords to keep the premises in good repair, offering a legal shield for tenants. However, legal proceedings can become lengthy and complicated, prompting both parties to settle disputes mutually to avoid protracted litigation.

4. High Deposits and Additional Clauses - Exploitation in High-Demand Areas:

In areas with limited housing availability, landlords might impose high deposit amounts and additional clauses that favor them. Priya Verma, CEO of a property management firm, noted that while laws generally favor tenants, landlords in high-demand areas may leverage their position to impose unfair terms. These clauses can create ambiguities in determining damages, allowing landlords to deduct more from security deposits than necessary.

5. Tenant Misconduct and Challenges for Landlords - Issues Faced by Landlords:

Landlords are not always at fault. There are instances where tenants refuse to pay for damages or vacate the premises upon lease termination, causing significant challenges for property owners. Verma emphasized that fostering a fair rental experience requires mutual respect for each other's rights and obligations.

Key Facts and Figures

• Rental Increase: Residential rental values in India’s top cities surged by over 30% year-on-year in 2023.
• Legal Protections: The Rent Control Act 1948 provides tenants with legal protections against exploitative clauses.
• Typical Clauses: Include restrictions on sub-tenancy, alterations, and maintenance responsibilities.
• Tenant Experiences: Frequent disturbances due to landlord visits and repair activities.

By understanding these key aspects, tenants and landlords can navigate rental agreements more effectively, ensuring a balanced and fair rental experience in India.