Major Indian cities have seen a noticeable increase in demand for rental homes following the COVID-19 outbreak. The reopening of offices and schools following the third Covid-19 wave in 2022, according to ANAROCK Research, caused a notable spike in demand for residential rentals. The startling spike in rent values, which has been observed in various locations, is indicative of this trend.
Rent Escalation by City
The increase in rental rates is not limited to just one city. Rents in Hyderabad increased by a strong 24%, and in Hinjewadi, Pune, they increased by a solid 17%. According to the most recent ANAROCK research, rental values in Chembur, Mumbai, increased by 14% during the same time period.
Microscopic Examination: Understanding Rental Dynamics
ANAROCK Research examined monthly rent rates in high-profile locations in the top 7 cities and found notable rises. This includes Thanisandra Main Road and Marathahalli-ORR in Bengaluru, where between Q1 2022 and Q1 2023, residential rental values increased by 24% respectively.
Managing Rent Increases in India: Important Information for Tenants
Landlords have the power to raise rent in India, therefore it’s important for tenants to discuss terms with them before signing. The landscape of rent increases in both commercial and residential premises is highlighted by the following important points:
Annual Increase in Commercial Rent: Typically, rent increases range from 5% to 8%.
Annual Residential Rent Increase: Following the expiration of a contract, landlords are permitted to increase residential rent by 10%.
Tenant Rights and Legal Considerations
The Transfer of Property Act of 1882, Section 106, requires landlords to provide tenants advance notice of any increases in rent. Rent increases are also permitted in the event of repairs, additions, or other modifications to the property, but they must not surpass a 15% yearly rise in the related expenses. Additionally, landlords have the ability to increase rent to make up increased government taxes, as long as the increase doesn’t exceed the additional tax amount.
Managing Increases in Rent: Advice for Renters
Talk to Your Landlord: If you are facing a significant increase, talk to your landlord about the circumstances.
Comparing and Investigating: To determine whether the increase is fair, compare the houses/flats in the surrounding neighborhoods.
Examine the rental contracts: The rental agreement will frequently include the percentage of rent increase.
Review everything in detail and discuss any issues with your landlord.
A fair and transparent renting experience is ensured by informed communication and tenant rights knowledge, which are essential in navigating rising rental rates in large cities.
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