Wednesday, April 10, 2019

Are you a Tamil Nadu based Landlord or Tenant ?? A must read article for you because entire Tamil Nadu Tenancy system is redefined !!!

Central Government is bringing PAN INDIA Rental property reforms and Tamil Nadu is the pioneer in introducing new Tenancy Act and procedures.
With effect from 22.02.2019, The Tamil Nadu Regulation of Rights and Responsibilities of Landlord and Tenants Act, 2017 come into force hence ultimately new tenancy agreements and let outs should be according to it. This article aims to explain some of the major tenancy changes landlord and tenants should know ;
1.The system of existing Rent Courts come to an end.
2.Land lord and tenant has to submit rental agreement to Sub Collector range officer and an agreement number will be allotted. Then the relevant agreement date will be uploaded in
3.Based on approved tenancy agreements disputes if any between landlord and tenant will be resolved.
4. To implement this Act effectively such number of officers will be appointed by District Collectors.
Point to keep in mind:
a.On mutual terms Landlord and tenant should enter into an rental agreement.
b.Agreemed Monthly rent should be mentioned in rental agreement.
c.More importantly Landlord should collect THREE MONTHS rent only as security deposit and not more than that.
d.As agreed in rental agreement both landlord and tenant has to maintain the property properly.
e.If Tenant is not vacating the premises after agreed period then he has to give Double the amount as rent.
f.Disputes if any regarding tenancy, either land lord or tenant has to give complaint to RDO/Rent Authority who in turn has to solve the issue within 30 days. If not satisfied with the solution given by RDO/Rent Authority then within 90 days aggrieved party can approach Rent Court then with 120 days to Rent Tribunal.

What is the immediate impact ?
No person shall, after the commencement of this Act, let or take on rent any premises except by an agreement in writing. Where, in relation to a tenancy created before the commencement of this Act, no agreement in writing was entered into, the landlord and the tenant shall enter into an agreement in writing with regard to that tenancy within a period of ninety days from the date of commencement of this Act.
What happens to existing rental agreements not registered so far ?
Any tenancy agreement in writing already entered into before the commencement of this Act, shall be registered with the Rent Authority by the landlord or tenant, by making an application in the Form specifi ed in the First Schedule within such time as may be prescribed.

Conclusion : Monthly rent, mode of payment, amenities in rental property, who has to pay Electricity charges etc., has to be clearly mentioned in rental agreement. The aim of this new Act is that “ No one should stay in rental property without registered rental agreement “. Without such registered rent agreement, the parties to dispute, can not approach RDO/Rent Authority for solution.

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