The
Karnataka Rent Act, 1999 and Rent Rules, 2001 provide for the regulation of
rent and eviction of tenants and other related matters. It aims at balancing
the interests of the landlord and the tenant and to encourage future
construction activities.
The
Act does not apply to the buildings belonging to State and Central Governments.
Co-operative Societies, Market Committee, Mujarai, or religious and charitable
institutions, wakf building, tenancy created by government grant and to the
premises whose rent is more than Rs. 3500 for month in part A of first Schedule
i.e. areas within the limits of cities under Corporation Act within 3-kilometer
radius and more than Rs. 2000 for month in other areas and the premises
constructed or renovated for a period of 15 years and nonresidential buildings
less than 14 squares and also group of buildings exempted by State Government.
According
to the Act, Family means wife or husband or dependent/s of the person; Landlord
means a person is entitled to receive the rent of the premises on his own
account or on behalf of any other person; Tenant means an occupier of a
premises belonging to another for rent.
The
tenancy agreement shall be in writing. If there is no agreement, the tenant and
the landlord shall enter in to an agreement of tenancy and deposit a copy of it
before the prescribed authority. If an agreement is not filed with regard to
the tenancy then the tenant and the landlord shall file the particulars about
such tenancy before the Controller.
In
case of death of tenant the tenancy shall devolve for five years from the date
of death of the tenant to his or her successors, namely, his wife/ her husband,
children, parents and widow daughter-in-law in that order, provided they were
the dependants living with the tenant in the premises and they do not own or
occupy any other premises in the same locality. However non-dependents who were
living with the tenant and those who own premises in the same area may also
continue possession of the premises for one year from the date of death of the
tenant.
The
rent payable is either the rent agreed to between the tenant and the landlord
or the enhanced or the standard rent. Standard Rent is the rent calculated on
the basis of ten per cent per annum on the aggregate amount of the cost of
construction and the market price of the land comprised in the premises on the
date of commencement of construction which will include the cost of electrical
fittings, water pumps, overhead tanks, water sewage and other fixtures and
fittings. The Controller, the prescribed authority, is empowered to fix the
Standard Rent.
The
amount paid to the Government for the purchase of the premises, shall be . the
construction cost which can be increased up to 30% for expenditure incurred by
the owner.
Besides the rent, the tenant is liable to pay amenity charges up to 15%,
maintenance charges @ 10% of
the rent and pro rata property tax (i.e. the difference between previous a and
present year property taxes) are payable by tenant.
The
landlord can increase the rent to the extent of 10% if he has incurred
expenditure for the improvement of the premises. But he cannot collect unlawful
charges from the tenant or from his dependents. The tenant can pay decreased
rent if there is decrease or diminution of accommodation.
As
regards revision of rent, the landlord shall give notice to the tenant of his
intention to revise the rent of the premises and recover it as long as it is
lawful. The landlord shall be entitled to recover from the tenant the amount
paid by him towards the electricity and water charges, which is ordinarily
payable by the tenant.
It
is the duty of the landlord to keep the premises in good condition and it is
the bounden duty of the tenant to keep the premises in good and tenantable
condition. The landlord or the person authorized by him has the right to enter
and inspect the premises after giving sufficient notice to the tenant.
During
the course of tenancy, the tenant shall not carry out any demolition or
alteration work in the premises
without the written consent of the landlord failing
which it shall be treated by the landlord as damage done to the premises let
out to the tenant.
The
landlord shall be violating the law if he cuts off electric and water supply to
the client without sufficient reason. If the tenant is deprived of the
essential services, he may approach the controller to redress his grievance.
Tenant
cannot claim any payment for relinquishing / transferring / assigning tenancy.
An application may be made to the Controller with in 2 years to fix standard
rent even for sub-tenant with the assistance of Valuers. Interim rent/charges
may be fixed or increased during pendency of case.
Tenant
has to pay rent before the 15th and later with 12% interest and the landlord
has to issue receipt against such rent and refusal to do shall attract a fine
which will be twice the rent amount paid for the premises. The landlord is duty
bound to refund the excess rent received to the tenant.
Tenants
may deposit rents/ charges with the Controller within 21 days of due date
otherwise it is invalid unless the landlord has withdrawn the amount. Landlord
shall withdraw the amount deposited by the tenant within 5 years.
Every
intermediary or estate agent shall register in Form 8 with 100 rupees as fees
and obtain certificate, valid for 5 years, and renew it every 5 years with the
concerned Controller. Every intermediary/estate agent shall file information
and returns within 30 days.
The Court,
District Judge or High Court shall make recovery of any premises in favour of
the landlord against the tenant on the ground, inter alia, that the tenant has
defaulted in payment of rent and other charges legally recoverable from the
tenant within two months from the date of issue of notice demanding payment of
rent. The Court can, by an order, direct the tenant to vacate the premises if
he fails to pay the landlord or deposits the amount into Court within one month
from the date of the order, an amount calculated on the basis of the rent last
paid for the period for which the arrears of rent and other legally recoverable
charges and the rent for the subsequent periods
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