If finding a perfect house for rent was not a difficult task already, the exorbitant deposits demanded by home owners have sure made the task even harder. Those looking for properties for rent in cities like Bangalore and Chennai face situations were home owners request for deposits that are sometimes five times higher than the actual rental value. However, tenants can now breathe a sigh of relief as XIII Small Causes Court in Chennai in an order cited a 1996 SC (Supreme Court) verdict that mentioned that the landlord is entitled to collect only a month’s rent as advance. So does it mean that the current owners that ask tenants to pay over INR 1 lakh as rent cannot do so legally? Is this order only restricted to Chennai and can tenants take action against landlords for demanding more advance? Read on to find out.
Because the small causes was in Tamil Nadu’s capital city – the rule is ideally applicable to Chennai alone. But because the order was based on a SC verdict – the rule that landlords are entitled to only one month’s rent as advance can be applicable to the entire country.
The ruling said that any amount paid in excess of one month’s rent shall be either refunded or adjusted towards tent. But can any action be taken against landlords that demand more? Only a demand cannot be taken as an offence and it is not necessary for the tenant to comply with the demand. However, this will create more awareness amongst tenants thus putting a stop to the rampant practice of landlords asking for more advance. If the tenant has paid advance of more than a month’s rent he could file a RCOP (Rent Control Original Petition).
While the ruling has made tenants happy, several people are criticizing this move. Most landlords are arguing that the rent advance is too less. The prospect of covering possible damages or settling electricity bills after eviction would be a daunting task.
Nidhi C Thacker for IndiaProperty.com
Image : https://www.flickr.com/photos/59937401@N07/5475051590/in/photostream/
Image Author: Images Money