New Rental Agreement Tamil Nadu: What You Need to Know

Are you a landlord or a tenant in Tamil Nadu? If so, you may be interested in the new rental agreement introduced by the Tamil Nadu government in February 2019. The new agreement replaces the old one that has been in use since 2009 and is aimed at providing better protection to both landlords and tenants.

Here`s what you need to know about the new rental agreement in Tamil Nadu:

1. Mandatory registration

Under the new agreement, it is mandatory for all rental agreements to be registered. This means that both the landlord and the tenant need to sign the agreement in the presence of two witnesses and get it registered with the local sub-registrar`s office. Failure to do so may result in a penalty of up to Rs. 5,000 for both the landlord and the tenant.

2. Standard format

The new rental agreement is designed to be a standard format that is applicable across the state. This means that all rental agreements will have the same clauses and provisions, making it easier for landlords and tenants to understand their rights and obligations.

3. Security deposit

The security deposit that the tenant needs to pay at the time of renting the property has been capped at two months` rent. This is aimed at preventing landlords from charging excessive amounts as security deposit and to ensure that the tenant does not face financial burden while vacating the property.

4. Rent revision

The new rental agreement allows for rent revision only once in three years. This means that the landlord cannot increase the rent during the three-year period, unless there is a mutual agreement between the landlord and the tenant.

5. Termination

The agreement also outlines the conditions under which either party can terminate the agreement. The tenant can terminate the agreement by giving one month`s notice, while the landlord can terminate it by giving three months` notice. If either party fails to adhere to the notice period, they will be liable to pay compensation to the other party.

The new rental agreement in Tamil Nadu is a welcome move towards providing better protection to both landlords and tenants. It is important for both parties to understand the clauses and provisions of the agreement, and to get it registered without fail. This will ensure a smooth and hassle-free renting experience for both parties.