Ali Fathima (Doctor) 15 July 2010

Requirememnts to file for Fair Rent

Hello,

I and my wife are retired medical practitioners. I own a commercial property (few shops in a row) in Chennai rented out for the past 16 yrs.

We had rented out the shops based on the agreement that the rent would be increased by a certain percentage once in 11 months which we did only for one year. Before we could increase the rent for the second time based on the agreement, the tenants formed a group and collectively along with the local trade union leader protested asking us to revise the agreement with an increment of ONLY Rs.100 once in two years failing which they refused to pay rent. Because of this the rent of our shops is very low as compared to the others in the same area causing enormous loss for us for the past 15 yrs.

One of my tenants is also defaulting the rent for the past 22 months and I have files a RCOP case for wilful default against him.

As we both are senior citizens, we also have sort eviction of two shops for OWNERS USE (clinic) in the court.

I have been advised by some of my friends to file for FAIR RENT. Please guide me on this.

Whom should contact in this regard?
On what basis is this calculated?
What are the formalities to be followed?
Assuming that the rent is revised after this, will we be able to increase the rent periodically (say once in 3yrs)?
Can I file for Fair Rent now, as there are two cases for Owners Use as such pending in the court?

Any help from the forum members will be highly valuable as I am totally in the dark.

Thanks in advance.

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8 Replies

Adv. Gulammayudin A. Gagdani (LEGAL ADVISOR) 15 July 2010

As per income tax guidelines

What is Fair Rent?
Fair Rent is the municipal valuation of the accommodation, or rent which a similar accommodation would realize in the same locality, whichever is higher. However, it cannot exceed the standard rent, if any, fixed or determine under a Rent Control Act. If the employer hires the accommodation, Fair Rent Value is the actual rent paid for the accommodation

What is Standard Rent?
Under the Rent Control Act, Standard Rent is the highest possible rent of a particular property,
Thus, where Rent Control Act is applicable, Standard Rent shall act as an upper ceiling on the figure of Fair Rent.

Well what you can do is from internet go thru provisions of rent act

Depending upon your state of residence there are different rent acts .

kindly search on internet or provide details which state you resides.

Ali Fathima (Doctor) 15 July 2010

I am residing in Chennai, Tamilnadu.

How can I find out the Standard Rent for my property? Please give some pointers.

Bobby Mani T (Lawyer) 16 July 2010

Infact i like your questions becuase they are so clear and specific
Whom should contact in this regard?

You should file a petition under rent control act at the rent control court, for this you may seek help of a civil lawyer there

On what basis is this calculated?

the criteria for determining fair rent is stipulated in Edger ferus v. Abraham ittycheria (a Kerala case which is ultimatly approved by the Suprme Court of India

The criteria are 1) Inflation and resultant reduction in the purchasing power.

2) Variation in the cost of living index inthe area since the commencement of the lease

3) Demand for accomodation and availability of building in the locality

4) Cost of construction of the building/ whether ground floor or upstairs/ amenities such as access to public places like bus stand hotels hospitals etc.

5) Prevailing rent in the locality

6) Whether residential or non residential

7) Annual rental value determined by the local authority

8) Building tax fixed by the loclal authority (The hike in the tax)

What are the formalities to be followed?

You have to file a petiion under the rent act to the rent controler. You may read on www.reboker.com

Assuming that the rent is revised after this, will we be able to increase the rent periodically (say once in 3yrs)?

The decision says that it can be revised by every 5 years

Can I file for Fair Rent now, as there are two cases for Owners Use as such pending in the court?

In my opinion you can file. I have filed 2 cases like this in kerala.

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anitha Gutti (Advocate) 20 July 2010

Sir,

You can file a suit for fair rent. You are saying that the tenants forming groups and protesting, the agreement itselt is substantial that they previously accepted for your terms and conditions laid out in the agreement for tenancy. They accepted the conditions and then only they have executed the agreement. So this itself a strong base for your suit and soon consult a lawyer who deals fair rent cases. An engineer's report who gives the report regarding your premesis, location of the premises, valuation of your premises at the present period, local advantages for tenants being in that location... so the engineer's report is a substantial evidence for your fair rent suit. Consult a good lawyer.. and proceed...........

Bobby Mani T (Lawyer) 21 July 2010

The adivice of Anitha Gutti is very correct. A report by a registered valuer also will help the owner to fix the fair rent of the building.

Bobby Mani T (Lawyer) 22 July 2010

R. G> Tigrania may refer to Issac Nican v. State of Kerala (1995 (2) KLJ 555, 1995 (2) KLT 848; Edger Ferus v. Abraham Ittycheria (2004 (1) KLT 787; Malpe Viswanth Acharia v. STate of Maharashtra, AIR 1998 SC 602. and Rent control Act of Karnataka 1999.

Subramanian (accountant) 24 August 2012

Hi Sir, I have a joint property in Ernakulam of which my wife is the half owner the other half is owned by my brother and myself in ratio(1:1) and he is forcefully occupying the place. I have given a court case for eviction and partition. But it is a considerable long time say 15 yrs. (Can i claim a Fair Rent for the said period he if so what should be the procedures)?

Kaushik Nandy (manager) 15 July 2017

Sir, I am owning one residential property in kolkata , which was purchased in 2010 wherein two rooms are rented out and tenants are old tenant staying in the room since last 35 years or so and paying a monthly rent of Rs. 26/- per month to me ( since inception of my tenure, rent are paid to me and Rent bill duly signed by them as tenant ) wherein the present rent as per municipal corporation valuation is Rs. 8500/- per month. at this juncture if I file fair rent case to Rent controller olkata , will it be beneficial to me because as per West Bengal Premises Tenancy act '1997 ( prevailing act of said jurisdiction ) , there is capping in the increment of rent hike which is 4 times of ongoing rent so at most Rs. 104/- would be the rent. Kindly advice.