State-specific Rent Control Acts (e.g., Maharashtra Rent Control Act, Delhi Rent Control Act) regulate urban tenancies through rent authorities.
1. Determination of Fair Rent / Standard Rent
Landlords cannot charge arbitrary rent. Rent Control Authorities determine Standard Rent based on the cost of construction, cost of land, and historical inflation adjustments. Landlords can only increase standard rent within small, statutory percentage caps annually.
2. Protection Against Arbitrary Eviction
A landlord cannot evict a tenant at will. Eviction can only be ordered by a Rent Controller on specific Statutory Grounds:
- Non-payment of Rent (Default): If the tenant fails to pay rent for a specified statutory period after receiving a formal notice.
- Unlawful Subletting: If the tenant sublets the premises to a third party without the landlord's written consent.
- Material Damage / Waste: If the tenant commits acts that substantially impair the value or utility of the property.
- Bona Fide Requirement: If the landlord requires the premises in good faith for their personal occupation or that of their family.