Can Rent Be Hiked If Rent Agreement Is Expired

Rent Agreement

Rental agreements are governed by the provisions of the Indian Contract Act, 1872. A rental agreement, is a legally binding document between a landlord and a tenant that outlines the terms and conditions. It typically includes details such as the duration of the tenancy. The amount, security deposit, rights & responsibilities of both parties, and any other terms & conditions agreed upon by both parties.

Types of Rent Agreement

Two types of Rental agreements in India are generally of: oral and written. An oral rental agreement is an agreement made orally, without any written document. It is not a preferred option as it is not a legally recognized document and is prone to disputes. A written rental agreement is a legally recognized document that is signed by both the landlord and the tenant.

It is a preferred option as it provides a clear understanding of the terms & conditions of the tenancy and helps avoid disputes. when both parties are agree with each term & condition so they will make a written document on the paper and it is verified by the government.  but when drafting a rent agreement there are some do’s and don’t that every landlord and tenant should be know about it.

Expiry Of Rental Agreement In India

A rental agreement, which specifies the terms and circumstances of a tenancy between a landlord and a tenant, is a legally binding document in India. The agreement normally specifies the rental payment, the length of the tenancy, and the duties of each party. It is typically for a defined time, such as 11 months.

The period of the rental agreement expires when that time arrives. The tenant now has two options: either they leave the property and give it back to landlord, or they work out a new lease with the landlord to extend their tenancy.

If the tenant decides to move out, they must give the landlord written notice at least one month’s notice. The tenant is also accountable for returning the rental unit to the landlord in the same state as when the lease started, with the exception of normal wear and tear.

Such as monthly rate, length of the tenancy, are often negotiated if the tenant & landlord decide to renew the lease. The prior agreement that has expired is replaced by the new one once before it is signed agreement.

Can Rent Be Hiked If The Rental Agreement Is Expired In India?

The rent of a property can be increased by the landlord only if there is a provision for it in the rental agreement. Landlord cannot increase the rent unless both the landlord and the tenant agree to it. When you are making any rent agreement then you should do market research and also contact a local real estate agent for you.

However, if the rental agreement is expired and the tenancy continues on a month-to-month basis, landlord can increase the rent . The landlord must give the tenant proper notice of the increase in rent. On the other hand, tenant has the option to either accept the increase or terminate the tenancy.

If the tenant does not accept the increased rent & decides to terminate the tenancy, they must give the landlord proper notice to vacate the premises. On the other hand, if the tenant decides to continue the tenancy, they must pay the increased rent.

Conclusion

Rent of a property can be increased by the landlord only if there is a provision for it in agreement. If the rental agreement has expired and the tenancy continues on a month-to-month basis. The landlord can increase the rent with the consent of the tenant. However, the landlord must give the tenant proper notice of the increase in rent, and the tenant has the option to either accept the increase or terminate the tenancy.

Jenni Kaur
Author: Jenni Kaur

Jenni Kaur, a third-year law student of Law. J Kaur has a passion for all things legal and is always eager to dive into the latest legal issues and debates.

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