October 5, 2022

DAMAGES OF PROPERTY AFTER TENANCY COMMENCES

INTRODUCTION

The phrase “landlord and renter” typically refers to a housing arrangement. Thus, a lease is a legal agreement that establishes a relationship between a lessor and lessee in which the lessor owns the property and rents it to the lessee. The law of leases does not necessarily address living conditions, nevertheless. For instance, a lease agreement may cover the usage of a product or service. Living arrangements are essential for human survival, thus landlord-tenant interactions are handled differently than leasing agreements. A landlord-tenant relationship typically arises when all of the following conditions are met: (1) the owner of the property agrees to the use of the property; (2) the tenant acknowledges that the owner has title to the property and a future interest in the property; (3) the owner actually has title to the property; (4) the tenant receives a limited right to use the premises; (5) the owner transfers possession and control of the premises to the tenant; and (6) the parties have entered into a rental agreement. It is possible for there to be an implied rental contract. In other words, landlord-tenant legislation may be applicable even in the absence of a formal, written rental agreement between the property owner and the occupant. .The existence of a landlord-tenant connection between two or more individuals must be determined by the court since the law imposes obligations on both parties to such a relationship. Landlord-tenant law has historically been in favour of landlords. Tenants were frequently evicted without warning or the chance to argue their case in court because courts decided landlord-tenant conflicts using rigorous contract and property law standards. A lot of renters were made to live in unlivable circumstances because landlords were under no responsibility to maintain the property. Landlord and tenant legislation had to evolve in the 20th century as urban populations grew and workers became more specialised. The typical tenant was no longer as skilled at fixing things as they did previously.They had a demanding schedule and little free time. These changes transformed maintenance into a specialist job that could only be done by the landlord. Before the 1960s, landlords were not compelled to only rent out livable dwellings. Landlords could offer for rent dirty, rodent-infested apartments with no heat or hot water. Even though nobody was physically compelled to live in one of these apartments, for many people it was the only one they could afford. States started to establish landlord and tenant regulations demanding that domestic rental units be made fit for their specific purpose in the 1960s and 1970s. According to the legally mandated Implied Warranty of Habitability, rental properties were to have enough plumbing, water, heat, structural integrity, and other fundamental characteristics important for human needs and livelihood.Cities must establish housing authorities to carry out the enforcement of the rules controlling habitability under new landlord and tenant statutes. States nowadays have different rules governing landlords and tenants. Additional landlord and tenant rules may be passed by local legislative bodies, provided they do not clash with state regulations. In general, landlords are required to hand over the rented property to the tenant at the start of the tenancy and to inform the tenant of any potential hazards or flaws in the property. The rental agreement should specify how long the tenancy will last. Courts typically determine that a tenancy is month to month if no other term is specified in the contract. This means that in order to end the tenancy, either side must provide the other one month’s written notice.Thus various states have their own acts to control the activities related to tenants and landlords.

DEFINITION AND MEANING OF FEW IMPORTANT TERMS

Definitions and meaning of ‘TENANT’,’LANDLORD’ and ‘TENANCY’. The parties to the leasing of real estate are known as the landlord and the tenant, or lessor and lessee, and their relationship is governed by a contract. The landlord, or lessor, agrees through a lease, an agreement for a lease, or other instrument to permit another person, the tenant or lessee, to enjoy the exclusive possession and use of the property for a specified period, typically upon payment of rent. The property may be corporeal, such as lands or buildings, or incorporeal, such as rights of common or of way. In general, anyone may issue or accept a lease, although there are a number of common law and statute requirements and exclusions (notably with regard to minors, aliens, felons, the legally insane, etc).Thus, the term “landlord” describes a person who owns property and rents or leases it to another person in return for rent payments. Individuals, companies, or other legal bodies can be landlords. During the renting time, the landlord typically pays for any necessary maintenance or repairs, but the tenant or leaseholder is usually in charge of keeping the property tidy and in good condition. A lease agreement often specifies the particular responsibilities and obligations of each party.On the other hand tenant means a person who inhabits or owns land or property as a result of receiving some kind of estate grant, such as in fee simple, for life, for a certain number of years, or at will. a person who has been granted by a landlord the permission to temporarily use and possess a specific piece of real estate.

A tenancy is the occupancy or possession of land or premises by lease. The occupant, known as the tenant, must acquire control and possession of the property for the duration of the lawful occupancy. A tenancy can be created by any words that indicate the owner’s intent to convey a property interest on another individual.

The following are the main tenancy types: (1) A “lease for a definite period” may be issued for any predetermined length of time, from a week or fewer to many hundreds of years. Fixed-term leases automatically expire at the end of the agreed-upon time. (2) Until it is terminated by a notice to vacate issued by either landlord, a “periodic tenancy”—granted annually, quarterly, monthly, weekly, or for any other period—continues permanently.(3) A “tenancy at will” lasts as long as the landlord and tenant want it to. Although they are very uncommon, such tenancies are occasionally employed to cover short-term needs. The landlord is entitled to payment for use and occupancy if there is no rent specified. (4) A “tenancy in sufferance” occurs when a tenant enters the property legally, but “holds over,” or continues to occupy the property after the estate has expired. In this situation, the renter is regarded as a “tenant at sufferance” rather than a trespasser. A tenancy in sufferance can easily be turned into a periodic tenancy, just like a tenancy at will, and the tenant is equally obligated to pay rent for usage and occupancy.

DEFINITION IN LAW-According to section 2(a) of Model Tenancy ACt,2021,Landlord,who is also named as landowner or lessor, is a person who is authorised to receive payment or rent of any premises, if it is given to a tenant.Tenant under section 2(n) of this act is described as, whether called lessee or by any other name, means a person by whom or on whose account or on behalf of whom, the rent of any premises is payable to the landlord under a tenancy agreement and includes any person occupying the premises as a sub-tenant and also, any person continuing in possession after the termination of his tenancy whether before or after the commencement of this Act; but shall not include any person against whom any order or decree for eviction has been made.

Under section 3(a) of Regulation of Letting,Rent and Eviction Act 1972,When referring to a building, the term “tenant” refers to the person who would be responsible for paying the rent if the building were rented.Under section 3(j) of this act Landlord refers to the person to whom the rent is payable if the building was rented.

Damages of Property after tenancy commences

Once the tenants move in, they are in charge of keeping the property in its pre-tenant state (again, except for the minimal, normal wear and tear). They cannot intentionally or negligently damage the property and if in the circumstances when such damage does occur, they must notify the owner immediately.There are various obligations upon the landlord and the tenant while renting a house.The responsibility for maintenance of the house not only resides upon the landlord but also upon the tenant.Under section 15 and16 of Model Tenancy Act,2021 it is clearly stated that the maintenance of the property should be carried out by both.We will now learn about this section clearly.

Under section 15(1) it is said that the landlord as well as the tenant both are responsible to keep the property in a good condition as it was at the time of commencement of tenancy.Both of them are liable to maintain and repair any damage that occurs in the property.

Under section 15(2),it says that if the tenant and the landlord share some common facilities, they are respectively responsible to maintain their facilities as mentioned in the tenancy agreement.

Under section 15(3),if the tenant declines or fails to maintain or repair any damage made by them after commencement of tenancy then the landlord is allowed to carry out such repair and remove any additional structure made by the tenant without landlord’s permission and the landlord is allowed to deduct the amount of such expenses from the security deposit of the tenant made at the time of entering the premises.If the expense exceeds the security deposit the tenant is liable to pay the extra amount.

Under section 15(4), it is said that if the landlord declines to carry out repair of the property, the tenant has full right to carry out such repair and deduct the amount from the rent which is to be paid to the landlord.

Under section 15(5),If the property cannot be occupied without the necessary repairs and the landlord refuses to make them notwithstanding the tenant’s written request, the tenant may vacate the property with fifteen days’ written notice to the landlord. 

Under section 15(6),The landlord shall not collect rent from the tenant until the said premises is returned by the landlord, subject to the provisions of this section, to be inhabitable when the premises let out on rent becomes uninhabitable for the tenant due to an event of force majeure or the tenant is unable to reside due to the occurrence of such event: 

With the exception that if the rented space becomes unusable due to the circumstances listed in subsection (5) and the landlord is unable to carry out repair of such premises then the security deposit and the rent should be refunded to the tenant.

Section 16 says that during the during the term of the tenancy, the tenant is required to: (a) refrain from intentionally causing damage to the property or permitting such damage; (b) notify the landlord in writing of any damage; and (c) maintain the property in a reasonably habitable condition, taking into account its condition at the beginning of the tenancy and the normal occurrence of living.

Thus this section clearly states that any damage that occurs during the commencement of the tenancy the, if any damage occurs in the premises then the tenant is liable to inform about such damage to the landlord and repair it. It is his duty to maintain the property and he should not cause any damage to the premises intentionally.Tenant must look after the premises after commencement of tenancy.

However, we need to understand that there is a difference between general wear and tear and damages.General wear and tear refers to alterations that a rental property might experience over the course of the tenancy without either the landlord or the tenant intending to make those changes. For instance, despite routine cleaning, grout lines may emerge on the floor or the paint on the wall may start to lose its sheen and peel off over time. If the building has wooden flooring, over time, it would get minor dents. Wooden furniture would begin to lose its colour and integrity, which are symptoms of typical wear and strain. “General wear and tear is defined as damage that results from the tenant’s regular everyday use. Examples include fading of wall paints, staining of kitchen and bathroom tiles, residual stains on floors as a result of insufficient mopping, etc.According to him, general wear and tear includes all deteriorations that result from usage but are not unintentional or the result of carelessness. The various fixtures in the kitchen and bathroom are similar in this regard. All property owners in cities like Noida, for example, dislike the fact that all metal fittings rust after a year of being in use. 

The predicted changes in the property are an important distinction between damage and wear and tear.The anticipated alterations in the property after frequent use serve as a significant dividing line between damage and wear and tear. A result of the tenant’s carelessness with the property could include dirty switchboards and soiled kitchen sinks. However, it is not implausible. However, this is not the case for broken kitchen sinks and malfunctioning switchboards. All unwanted alterations to the property that have been used with some degree of intentionality on the part of the tenant would constitute property damage. Without abuse or neglect, the property would not have large or small holes in the walls, cracked floor tiles and wall mirrors, damaged bathroom or kitchen fixtures, ripped carpets, and persistent stains on the upholstery. The renter will be responsible for covering the cost of repairs for any such damages that reduce the value of the property and do not fall under the category of normal wear and tear.

CASE ANALYSIS

1.RAMESH CHANDRA V. III ADJ

In 1977, the petitioner filed a lawsuit to evict the respondent-tenant. He claimed that because the property was built in 1968, it was exempt from the 1972 U.P. Urban Buildings (Regulation of Letting, Rent, and Eviction) Act (hereinafter referred to as “the Act”). A notification under Section 106 of the Transfer of Property Act ending the respondent’s tenancy was given prior to the lawsuit. Tenant-respondent objected to the lawsuit, claiming that the Act applied because the building was an older structure. He argued that the decree for ejectment cannot be issued since none of the grounds listed in Section 20’s subsection (2) were established.The trial court dismissed the case, concluding that the Act applied to the house and that the complaint could not succeed because none of the grounds envisioned by Section 20(2) were proven. The benefit of Section 39 of the aforementioned Act was determined to go to the tenant. Another finding was made that the notice given under Section 106 of the Transfer of Property Act was illegal since the defendant was not in rent arrears for the four months claimed by the petitioner-landlord. 

2.In the dispute between V. Kalpakam Amma and Muthurama Iyer Muthurkrishna, a site served as a portion of the leased-out building, which was completely destroyed. The Kerala High Court ruled that notwithstanding the destruction of the building that was the subject of the lawsuit, the relationship between the landlord and tenant continued to exist and that the lease was not avoidable under Section 108(b)(e) of the Transfer of Property Act. The right granted by this article is optional, nevertheless, and the lease is not terminated unless the lessee exercises it by giving notice to the lessor. 

3. SYED MUKHTAR V. RANI SUNDER KOER 

The defendant-respondent, Rani Sundar Koer, is Rajah Ramesswar Prosad of Muksudpur’s widow. She created a will, secured letters of administration, and had her name listed in the Collectorate as proprietress of her husband’s estate after his death. On the 16th of January 1904, she signed a zurpeshgi thica lease while in possession of the estate in favour of the Plaintiff and Defendants Nos. 3 to 5. The brother of the Rajah, Babu Chandreswar Prosad, apparently filed a lawsuit against the Rani on November 30, 1913, seeking a declaration that, upon the Rajah’s passing, he became the property’s legal owner.On appeal, the knowledgeable District Judge upheld the decision insofar as it pertained to the refund of the zurpeshgi money, but ruled that he was not entitled to any compensation for Babu Chandreswar Prosad’s interruption of his possession. To this Court, the Plaintiff has appealed. The Transfer of Property Act’s section 108, clause (c), states that in the absence of a written agreement or custom to the contrary, the lessor shall be deemed to have made an agreement with the lessee that, in exchange for paying the rent specified in the lease and upholding the obligations imposed on the lessee, the latter may possess the property for the duration of the lease without interruption.

CONCLUSION

The likelihood of disagreements between the landlord and the tenant is fairly significant unless the regulations for property maintenance are stated in the leasing agreement. So much so that one party may choose to sue the other in court for financial losses incurred as a result of the other party’s neglect of the property. Due to the ambiguity in Indian rental rules regarding who is liable for what duties, both parties frequently assume that the other is in charge of maintaining rental property. The actual issue emerges when the landlord takes the stance that any property damage was caused by the renter and subtracts that cost from the tenant’s security deposit.For these issue, the acts are made to solve the tenant and landlord issues.However as discussed  earlier, different states have made their own regulation acts to guide the tenancy related matters, like The Uttar Pradesh Urban Buildings Act,1972,The West Bengal Premises Tenancy Act of 1997, Maharashtra Rent Control Act,Model Tenancy Act,2019 (which is proposed by the Government of India for guiding tenancy laws according to the market rate).Though the model tenancy act is till now accepted by only few states like UP,Assam, Andhra Pradesh and Tamil Nadu.However even after the enactment of this act, the landlord and the tenant must take few precautions,when formulating the clauses of the rent agreement, special consideration should be given to the issue of property upkeep. The landlord should include terms that specify the respective responsibilities of the two parties because this has the potential to significantly alter the asset’s future value. Any ambiguity in this regard would not only generate future disputes with your tenant but also financial harm.It is customary to return the property to your landlord in the same condition as you found it when you first moved in. Tenants in India are required by rental rules, such as the Draft Model Tenancy Act, 2019, to protect the premises and that the landlord’s real property is not visibly damaged. Despite the fact that there is no rule in the globe that requires tenants to pay for the usual wear and tear on a property, they are nonetheless expected to get the house well cleaned and return the rental in the same condition as when they first moved in. 

SOURCES

  • 1.THE MODEL TENANCY ACT,2021
  • 2.REGULATION OF LETTING,RENT AND EVICTION ACT,1972
  • 3.https://www.casemine.com

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