Rent increases are among the most common points of dispute between landlords and tenants. While landlords may seek to revise rents to reflect market conditions or property improvements, the ability to do so is governed by law and the tenancy agreement’s terms. Two key laws, the Model Tenancy Act, 2021, and the Delhi Rent Control Act, 1958, lay down clear rules on when a rent increase is valid and when a tenant can push back.Agreement comes firstUnder Section 9(1) of the Model Tenancy Act, 2021, the revision of rent between a landlord and tenant must align with the terms of the tenancy agreement. This means a landlord cannot unilaterally raise rent mid-tenancy. If the rental agreement does not include a rent revision clause, any demand for an increase during the agreement period has no legal standing, and the tenant is within their rights to refuse it.When can a landlord increase rent?Section 9(2) of the MTA carves out one exception: if a landlord has carried out improvements, additions or structural alterations to the premises (not routine repairs) and has a prior written agreement with the tenant for the same, the rent may be increased by a mutually agreed amount. Crucially, such an increase takes effect only one month after the completion of the work, not before.What if there is a dispute?Section 10 of the Model Tenancy Act, 2021, provides a remedy. In case of any dispute over rent revision, either party (landlord or tenant) may approach the Rent Authority, which has the power to determine the revised rent, fix other payable charges, and set the date from which the revised rent becomes effective.What if you’re in Delhi?For tenants in Delhi, the Delhi Rent Control Act, 1958 adds another layer of protection. Under Section 8(1), a landlord wishing to raise rent must first give written notice of the intended increase. The increased rent is recoverable only after the expiry of 30 days from the date of such notice. Section 8(2) further requires this notice to be issued in the manner prescribed under Section 106 of the Transfer of Property Act, 1882; verbal or informal communication is legally insufficient. Additionally, Section 7(1) of the same Act restricts rent increases to cases involving documented improvements, capping the hike at 10 per cent of the cost incurred.Tenants who receive an unexpected rent hike would do well to first check their rental agreement, verify whether proper written notice was served, and if needed, file an application before the Rent Authority under the Model Tenancy Act, 2021.
