What are the basic rights of a tenant in Mumbai when there is no agreement in place? By what per cent can the landlord revise the rent per year?
—Name withheld on request
We assume that this tenant is residing in the subject flat for the past 30-40 years without any formal agreement and the landlord has recognized his rights as a tenant to the subject premises.
It is pertinent to note that no landlord can deprive the tenant of essential services such as electricity, water, lighting in the passage, etc.
With respect to percentage of increase in rent each year, this will be governed by the provisions of the Maharashtra Rent Control Act 1999 (Act) which inter alia states that the landlord shall be permitted/entitled to make an increase of 4% per annum and also as permitted under the Act and it rules.
To clarify, a tenant is liable to pay standard rent and permitted increases In case the landlord has undertaken expenses to make certain improvement/structural alterations of the subject premises, he can increase the rent beyond 4% and up to 25% per annum under law.
Aradhana Bhansali is partner, Rajani Associates.
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