Accommodation is the chief requirement of every individual. In a country, like India, where real estate prices are going high with the each new day, the dream of owing a house has become a mirage for average Indians. This is what nowadays adding to the popularity of rented accommodation. Indeed, India rentals are believed to be the lowest as compared to other part of the world. Metros like Delhi, Mumbai, Kolkata, Chennai, Bangalore offer amenities of sweet home at reasonable prices.

India has stringent laws relating to real estate, which clearly identifies the rights of tenants by virtue of the possession of tenant property. For that reason, it becomes all the more essential to get acquainted with the basic terms and conditions prevalent in the country.

Rental laws in India - A necessity

The real estate scene in India is flawed by land market distortions. The most glaring ones include inflexible zoning, rent and tenancy laws. Zoning laws, rent controls and protected tenancies have been detrimental to the healthy rentals. They have put a freeze to land in city centers that could be otherwise made available for new retail outlets and flats.

These laws also gloss over operational inefficiencies and scuttle competition. Tenants residing could not be evicted for along time and would not surrender their cheap tenancies on their own volition. The renovation of buildings could hardly happen.

Rent or lease of a residential or commercial property in India is subject to strict Indian laws. A mutual agreement on the terms and conditions of the rented property by the landlord and the tenant is required.

In the present times, leasing a commercial space as opposed to owning commercial real estate is turning out to be a brilliant move. Professional and legal advice becomes a necessity as there are fewer tenant-friendly laws in the area of commercial leases, and no standard lease agreements.

A lawyer’s help will be useful for making an informed decision in negotiating the best deal on a commercial lease as he/she can research zoning laws and local ordinances and inform you about local real estate market conditions and customs.

Future outlook

Overall, the rental laws need to be must be revised to protect the owner and his/her property from the tenant. Special areas of focus should be on terminating old tenancies, removing constraints on increase of rentals and empowering owners in the sense of being able to reclaim their properties without any court proceedings.

The market forces should be allowed to determine the rental amounts and the owner must have full protection for his/her property. This will go a long way in providing security to the landlord and also reduce the deposit amount required with the lease agreements.

If these laws are enacted and strictly enforced, there is every chance that more investors will want to enter the real estate market to utilize the rental fees as income. This is especially true for the commercial sector. The tax laws also need to be revised so that renting of properties becomes a financially viable option. Amendments in the Rent Acts of several states are a progressive move.