Rent hike during lease: Can your landlord suddenly increase rent?

For millions of tenants in India, such situations are all too familiar. Unexpected rent hikes, eviction threats, and last-minute changes to tenancy terms often leave renters wondering where they stand legally.The answer isn't always straightforward. A landlord's powers are not unlimited—they depend on the tenancy agreement, if one exists, and the laws governing rentals in the state where the property is located.In India, landlord-tenant relationships are primarily governed by the Transfer of Property Act, 1882, state-specific rent laws, and the Model Tenancy Act, 2021, which has so far been adopted by only four states. Understanding these rules can help tenants distinguish between legitimate demands and unlawful ones.If a written agreement existsConditions mentioned in the written agreement, mutually agreed and signed by the landlord and tenant, determine the actions that can be taken during the tenancy period. Rent can be increased only if it is backed by a clause in the agreement, for example, "The rent shall increase by 10% after 11 months,” or "The rent shall be revised annually by mutual agreement."You are not liable for increased rental charges if no such provision exists in the agreement.Absence of a written agreementAccording to Section 106 of the Transfer of Property Act 1882, in the absence of a written contract, the lease of a property for purposes other than agriculture and manufacturing is treated as a month-to-month tenancy and can be terminated by notice.Since the tenancy is applicable for a month, the landlord may vouch for an increase in rent for the next month. If both parties do not agree, either can terminate the tenancy by giving a 15-day written and signed notice to the other.Importance of a written agreementWhile renting a property, you must always opt for a written agreement, as it allows you to negotiate conditions with the landlord and nullify any arbitrary actions, such as rent hikes, in the future.The document, written on a stamp paper, can also be defended in court. However, a registered written lease offers better protection.Under the Model Tenancy Act 2021, a written agreement is mandatory. However, the act itself is a framework for the states to draft their tenancy regulations, which they may or may not agree upon.The necessity of a written lease depends on state-specific laws. So far, only Andhra Pradesh, Tamil Nadu, Uttar Pradesh and Assam have revised their tenancy Acts on the lines of MTA.Ready to Make a Smarter Property Decision? Build Your Legacy with TOI Homes.