Tenancy Act: Relief for tenants from paying high advance

The Act, notified by the State government on Friday, says, “It shall be unlawful to charge a security deposit anything which is more than three times the monthly rent.” The landlords will also have to refund the security deposit within a month after the premise is vacated, after deducting liabilities, if any.

The Act has mandated that the landlord should register the tenancy agreement in Rent Authority, which would provide a registration number within 15 days. Rent Authority, to be appointed by district collectors, should not be below the rank of deputy collectors. Agreements already drawn should also be registered.

In order to enable the landlords and tenants to register their tenancy agreement with the Rent Authority, an exclusive web portal, www.tenancy.tn.gov.in, was launched. This would be maintained by the State Housing and Urban Development Department.

The new Act supersedes the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960. The development has come in the wake of the State having 23.4 per cent of rental housing.

Along with this, the Act, in order to protect the interest of tenants, has included a clause allowing the Rent Court to levy a penalty on the landlord extending up to Rs 25,000, if the landlord re-lets the premises within three years after vacating the earlier tenant by claiming it was for personal occupation.

“If landlords want to increase the rent, they would say that they are going to use the house for themselves and then let it out to the tenants who are ready to pay a higher rent. The Act prevents such practises. Also, capping the security deposit would help middle-income group,” G Arun Kumar, a tenant in Tiruvallur, said.

Apart from controlling the landlords, the Act also entails the tenants to make periodic repairs to taps, switches and sockets, kitchen fixtures, glass panels in windows, doors and others. If a tenant refuses to undertake these repairs, the landlord could do the repair and deduct the money from the security deposit.

However, structural repairs (except for the damages caused by the tenant), whitewashing, plumbing and wirings should be done by the landlords.