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Rent Control Act

The legislature enacted a national Rent Control Act in 1948. It controls the guidelines for renting out a property and makes sure neither the rights of the landlords nor the tenants are violated by the other. It should be noted that each state currently has its own Rent Control Act, and while they are generally similar to one another, they do have a few small variations.

The 1948 Act's strict requirements and pro-tenant stance have made it impossible for the real estate sector in some regions to expand. Despite inflation and rising property values, some properties that have been rented out since 1948 continue to pay the same amount of rent.

Rent-Control-Act

In an effort to prevent the property's value from declining, the Central Government attempted to change the Act in 1992 through a proposed model. The sitting tenants unfortunately resisted the adjustments, therefore they did not go into effect.

The Rent Control Act was created to safeguard both tenants' rights as well as those of landlords and their property. The Act grants the tenant a few key rights, including the following:

Right Against Unfair Eviction: In accordance with the Act, the landlord is not permitted to remove the tenant without good cause or justification. Each state has a slightly different set of eviction laws. In some places, the landlord must go before the court and request a court order before they can evict a tenant. If the renter is ready to accept any adjustments to the rent, he or she cannot be evicted in several states.

Fair Rent: The landlord is not allowed to demand excessive rent while renting out a home. A rental property's appraisal must take its value into consideration. The tenant may go to court to seek relief if they believe the amount of rent being requested is excessive given the worth of the property. Typically, the rent should range from 8% to 10% of the total value of the property, which includes all costs associated with building and property improvements.

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