Rent increament on very old shop
Querist :
Anonymous
(Querist) 10 June 2018
This query is : Open
Dear Sir,
Please advise me how much (percent) landlord can increase the rent on very old shop.
As my father holding a shop from more than 35 years and now landlord passed away and his son increasing rent illegally and randomly.
Kishor Mehta
(Expert) 10 June 2018
Each State has its own Rent Act, It is necessary to know the State where the shop is situated.
R.Ramachandran
(Expert) 10 June 2018
The Hon'be Supreme Court in Mohammad Ahmad & Anr. vs. Atma Ram Chauhan & Ors. (CIVIL APPEAL NO. 4422 OF 2011) has inter-alia given some guidelines. The following are main guidelines besides other points:
(i) The tenant must enhance the rent according to the terms of the agreement or at least by ten percent, after every three years and enhanced rent should then be made payable to the landlord. If the rent is too low (in comparison to market rent), having been fixed almost 20 to 25 years back then the present market rate should be worked out either on the basis of valuation report or reliable estimates of building rentals in the surrounding areas, let out on rent recently.
(ii) Apart from the rental, property tax, water tax, maintenance charges, electricity charges for the actual consumption of the tenanted premises and for common area shall be payable by the tenant only so that the landlord gets the actual rent out of which nothing would be deductible. In case there is enhancement in property tax, water tax or maintenance charges, electricity charges then the same
shall also be borne by the tenant only.
You may like to go through the decision, which is available at the following link:
https://supremecourtofindia.nic.in/jonew/judis/38018.pdf
Ms.Usha Kapoor
(Expert) 10 June 2018
The above guidelines were taken from Supreme court Judgment laid down guidelines in 2011.
Supreme Court's model rent agreement assures tenant 5 yrs' stay
Dhananjay Mahapatra | TNN | Updated: May 15, 2011, 02:20 IST
It asked the tenants to pay up every charge accrued on the house to enable the landlord get the rentals without any deduction.
NEW DELHI: The Supreme Court has drafted a model landlord-tenant agreement promising tenants five years of peaceful stay in the premises if they give rent at market rate, increase it by 10% every three years and pay the property tax for the house.
It asked the tenants to pay up every charge accrued on the house to enable the landlord get the rentals without any deduction.
"If the present and prevalent market rent assessed and fixed between the parties is paid by the tenant, the landlord shall not be entitled to bring any action for his eviction against such a tenant at least for a period of five years.
Thus, for five years the tenant shall enjoy immunity from being evicted from the premises," the court said. The court realized that in most landlord-tenant disputes, there were no written contracts and the tenants took advantage of the situation because of the slow process of rent control laws and the judicial process involved in eviction.
The court said adherence to these guidelines could considerably bring down litigation. This judgment would not affect the tenancy governed by existing lease deeds or specific contracts between the landlord and tenant.
It found tenants occupying the property by paying rent at a rate determined 20-25 years ago, and said half of the landlord-tenant disputes would not have reached the courts if the tenants agreed to pay rent at market rate.
Writing from personal and judicial experience, the court said: "We deem it our duty and obligation to fix some guidelines and norms for such type of litigation, so as to minimize the landlord-tenant litigation at all levels."
It said: "The tenant must enhance the rent according to the terms of the agreement or at least by 10% after every three years. If the rent is too low in comparison to the market rent having been fixed almost 20 to 25 years back, then the present market rate should be worked out."
It should be determined either on the basis of valuation report or reliable estimates of building rentals in surrounding areas let out recently, said Justice Bhandari, who authored the judgment for the bench.
Kishor Mehta
(Expert) 11 June 2018
With due respect, the above judgement was in the matter concerning the Delhi rent Act whereas certain provisions of Maharashtra Rent Act are radically different hence this should not be referred if the query relates to Maharashtra Rent Act. Hence it will not be prudent to offer advice without first confirming the State where the property is situated.
Querist :
Anonymous
(Querist) 18 June 2018
Dear Sir/Mam,
This property belong to U.P. ( District-Farrukhabad)
Thanks and Regards
Querist :
Anonymous
(Querist) 18 June 2018
Dear Sir/Mam,
This property belong to U.P. ( District-Farrukhabad)
Thanks and Regards
