Pre-requisites to be met before renting a property:
- No any person shall rent or take on rent a house which is deemed unsuitable for human habitation from health or security perspectives.
- Quality standards of a house for non-residential purpose shall be specified in the house rent agreement.
- The owner at the time of entering into an agreement, shall disclose the weakness or fault, if any, in the structure of the house to the tenant.
- The owner shall prepare the description of goods and belongings in the house, and if the tenant is to use such, shall give receipt thereof to the house-owner.
* On the termination of the house rent contract, it shall be the duty of the tenant to return such belongings in the good condition.
House rent agreement:
Other than when monthly house rent does not exceed twenty thousand rupees, while renting a house, its owner shall enter into an agreement in writing with the tenant, inscribing following matters:
- Full name and address of the owner and of the tenant, their citizenship number; and passport or identification certificate in the case of a foreigner,
- Place and plot number of the land where the house is located,
- Purpose for rent,
- Date of commencement of rent,
- Validity period of rent, not exceeding 5 years, which may be extended at times with the mutual consent between house-owner and tenant,
- Monthly rent,
- Time and mode of payment of rent,
- Liability to pay tariffs of electricity, water supply, telephone etc. used in the house,
- Matter on payment of house rent tax,
- If the rented house is to be insured, matter relating thereto,
- Matter on leaving the rented house and eviction of the tenant from it,
- Matter as to whether the rented house can be sublet to another,
- Other necessary matters,
* If the agreement fails to provide any mode or procedure of payment, the tenant shall pay the rent to the owner within 7 days of the expiry of each month.
* Except as provided otherwise, it shall be the duty of house-owner to pay the tax and other charge leviable by law in relation to the house rented. If the owner fails to pay the tax or other charges, the tenant shall make the payment, deducting the same amount from the rent payable.
Along with tenant’s photograph affixed to the agreement, the agreement shall also be signed by at least two witnesses from each side. A copy of the agreement shall be retained by both the owner and tenant.
|Obligations of House Owner||Obligations of tenant|
To allow the tenant to use the house in accordance with the agreement,
To pay the rent to the house owner within the specified time,
|To arrange for such water and electricity supply, sewerage and sanitation in the rented house as may be required, except as otherwise provided for in the agreement,||To maintain sanitation in, take care of, protect and safeguard the rented house properly and reasonably, as if it were his or her own,|
To prevent the tenant from insecurity, harassment or unrest from other persons dwelling in the house,
Not to do any act such as causing unrest, harassment or insecurity to the other dwellers in the house or neighbors,
To abide by the other matters set forth in the agreement.
To abide by the other matters set forth in the agreement.
- Insurance of the rented house:
A tenant renting a house for business or industrial purpose, shall conclude the insurance of the house for security purposes. However, if the person obliged fails to procure insurance of the house, and the house is damaged by such cause as disaster, riot, fire or similar reasons, the tenant shall be liable for payment considering such damage.
- Repair and Maintenance:
Except as otherwise provided in the agreement, the tenant shall be obliged to undertake repair and maintenance of the rented house, as required. If the agreement requires house-owner to carry out repair and maintenance, the tenant shall give a notice in writing to the house owner in time. However, if the owner fails to conduct such repair and maintenance, the tenant may undertake it, and prior to doing so, prepare a cost estimate and give its written information to the house owner in advance of 15 days and deduct the amount from the rent payable.
- Alteration in agreement:
With the mutual consent between the parties, the necessary alteration to the house rent agreement can be made. In the event where such an agreement is registered to the concerned authority, the alteration shall be made upon making application to such authority.
- Inspection of house:
The house-owner is vested with the right to inspect the rented house, by notifying the tenant in advance. It shall be the duty of the tenant to allow the house-owner to inspect the house.
- Prohibition on alteration of structure:
The tenant shall not demolish, remove or alter the structure of rented house in any way without the owner’s consent in writing. If the tenant does any act to alter the structure of the rented house without the consent of the owner and thereby causes any loss to the house-owner, the owner shall be entitled to recover compensation from the tenant.
- Prohibition on use of the rented house in contrary to the agreement by the tenant.
Subletting of the House:
If the agreement provides that the tenant may sublet the whole or any portion of the rented house, s/he may subject to the agreement, sublet the whole or any portion of such a house to another person.
The tenant shall, no later than fifteen days, give information in writing indicating the name and address of the sub-tenant to the houseowner.
The sub-tenant is liable to pay the rent to the tenant and shall abide by all the terms and provisions as required to be abided by the tenant.
If the sub-tenant fails to act in accordance with the terms, the tenant may evict the sub-tenant from the house at any time.
Leaving rented house:
Upon the commission of following events, a tenant may leave the rented house prior to the expiration of the period of rent, giving a notice in writing to the house-owner in advance of at least thirty-five days;
a). If the house owner fails to perform his or her obligations
b). If the tenant no longer needs the house for the purpose for which he or she rented it,
c). If the house owner does any act in contravention of the agreement or the guiding law,
Eviction of Tenant by the House-owner:
The house-owner is vested the right to evict the tenant under the following circumstances:
a). If the tenant fails to perform his or her obligations,
b). If the tenant commits in the rented house any offense related activity prohibited by law,
c). If the house-owner needs the house for himself or herself, here the owner is obliged to give the tenant a notice in writing in advance of at least thirty-five days. Also, the house owner is entitled to rent such house to another person until 3 months, without using it on his or her own. But, if the owner ought to do so, the tenant shall be given highest priority.
d). If it is necessary to repair and maintain the house by removing inhabitants from the house,
e). If the rented house does not appear to be appropriate for human habitation from the technical and health perspectives,
f). If the period of house rent expires,
g). If the tenant does any act in contravention of the agreement or the guiding law,
Power to vacate house:
If a tenant disappears, without paying the rent, for 3 months or more without notice and there is no idea on his whereabouts, the house-owner shall vacate the house following the application to the concerned ward office of the Local Level.
Termination of Contract:
1. If the tenant leaves the house,
2. If the house-owner evicts the tenant from the house,
3. If the house-owner and the tenant cancel the agreement with mutual consent,
4. If the period of house rent expires.