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Business News India: Latest Business News Today, Share Market, Economy

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BT Explainer: Tenant or landlord who bears repair costs i...
2026-06-17 · via Business News India: Latest Business News Today, Share Market, Economy

Who pays when a pipe bursts or damp patches appear on the wall — a tenant or the landlord? The Model Tenancy Act offers a roadmap for resolving one of the most common rental disputes.

BT Explainer: Tenant or landlord - who bears repair costs in a rented home?Both landlords and tenants are expected to maintain the property in the same condition in which it was handed over, except for normal wear and tear.

The geyser stops working in the middle of winter. A water pipe starts leaking in the house. Damp patches begin appearing on the walls. For tenants and landlords alike, these everyday problems often lead to one familiar question: who is supposed to foot the bill?

India's Model Tenancy Act, 2021 attempts to provide some answers. Introduced by the Union government as a model framework for states and Union Territories, the law seeks to bring more clarity and accountability to rental relationships by encouraging written agreements and clearly defining the responsibilities of both parties.

Although the Act has not been uniformly adopted across the country, its provisions offer useful guidance and are increasingly shaping discussions around rental reforms.

Repairs are not always the landlord's problem

A common misconception is that every repair is the owner's responsibility. The Model Tenancy framework takes a more balanced approach.

Both landlords and tenants are expected to maintain the property in the same condition in which it was handed over, except for normal wear and tear. The tenancy agreement plays an important role in determining who is responsible for what.

Broadly, repairs and maintenance obligations assigned to the landlord under the agreement or the Act must be carried out by the property owner. These could include structural repairs or other major maintenance issues.

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What if the landlord refuses to act?

The framework gives tenants a remedy if the landlord neglects repairs that fall within the latter's responsibility.

In such cases, the tenant can arrange for the work to be done and recover the cost by deducting it from future rent payments. However, there is a limit: the deduction in any month cannot exceed 50% of the agreed monthly rent.

If the property becomes unfit for occupation because the landlord has failed to undertake essential repairs, the tenant may vacate the premises after giving 15 days' written notice.

Tenants have responsibilities too

The law does not place all obligations on landlords.

Tenants are expected to take reasonable care of the premises, avoid causing damage and promptly inform the owner in writing if something goes wrong. They are also required to maintain fittings and fixtures and use the property in accordance with the tenancy agreement.

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If a tenant fails to carry out repairs that are their responsibility, the landlord can undertake the work and recover the expenses from the security deposit. If the repair cost exceeds the amount available in the deposit, the tenant must pay the balance within one month of receiving notice.

What happens during floods or fires?

Sometimes neither party is at fault. Natural calamities such as floods, cyclones, earthquakes or fires can make a house temporarily uninhabitable.

In such force majeure situations, the landlord cannot charge rent until the property is restored to a habitable condition. If restoration is impossible, advance rent and the security deposit must be refunded within 15 days after the notice period expires.

Why a detailed agreement matters

Many rental disputes stem not from the absence of laws but from vague agreements and verbal understandings.

Experts say tenants and landlords should pay close attention to clauses dealing with repairs and maintenance, security deposits, notice periods and dispute resolution before signing a lease.

The message underlying the Model Tenancy Act is simple: when responsibilities are clearly documented, minor problems are less likely to turn into major disputes.

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Before signing a rent agreement...

Experts recommend reviewing the applicable state law before signing a rental contract. Key clauses that deserve careful attention include:

  • Rent amount and payment dates
  • Security deposit and refund conditions
  • Rent revision terms
  • Repair and maintenance responsibilities
  • Notice period and termination conditions
  • Lock-in and renewal clauses
  • Entry rights of the landlord
  • Dispute resolution provisions

The broader objective of the Model Tenancy Act is to create a more transparent and predictable rental ecosystem by encouraging written contracts, clearly defined obligations and structured legal remedies. For both tenants and landlords, careful documentation remains the first line of protection against future disputes.

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Published on: Jun 17, 2026 2:43 PM IST