Section 13 Rent Increase: Fill & Download for Free

UK answer - yes, the landlord can increase the rent at any time as far as I know. They must notify the tenant a couple of months in advance, and your choice is then to pay the higher rent or give notice to leave the property.Edit: more information on the above:Section 13 (2) of the Housing Act 1988 provides for a landlord to increase rent in an assured shorthold tenancy agreement by issuing a Section 13 Notice if the rent is not stated in the tenancy agreement and the tenant does not agree to the proposed rent increase.With all Assured Shorthold Tenancies landlords can increase the rent after the initial fixed period if it is stated in the tenancy agreement or if the tenant agrees to the increase. There may be a rent increase clause in the tenancy agreement which would have been agreed and signed at the start of the tenancy.However, if the increase is not stated in the agreement and the tenants dispute the increase, then landlords are required to follow certain procedures if they wish to increase the rent on the property.The Housing Act 1988 makes it possible for landlords to increase the rent after the initial fixed term by issuing the tenant with a section 13 notice.Notice of Rent Increase using Section 13 Documents & Template

I will give you expert level calculations with different sections. However, still I believe that if you want home for yourself and you are sure that you are not gonna change city then its good to have your own home. Remember that EMI should eat only 20% of monthly income. You will feel good emotionally and it you can plan furniture. Investment purpose - it is worst idea to invest in real estate.Very Important: If you are purchasing your first home and your family income (excluding parents) is between 6 - 18 lakhs per annum and flat size is less than 1100 square feet then you may be eligible for PMAY (Pradhan Mantri Awas Yozana). If yes, go ahead and purchase - you will be saving 5 Lakhs in total. This is never before offer. GST applicable will be 8 or 9% instead of 12% and your interest will be saved.You can still get benefit under PMAY even if your parents own a homeHere are the calculationsShifting Benefits: If you take house on rent - you can take 3BHK - 1 Cr house at just 25–30K per month. Now owners of such houses are mostly NRI. So you need not to bother and it is as good as your own home. After 5–6 years, when you feel its old and want to move to smarter home. You can always have it in almost similar rent (10% increase).If you purchase new flat - you will be paying maintenance bill of nearly 5K per month and also atleast 60 thousand per month installment. You will be living at some distance and also have to compromise on quality of housing. After 6 years, you have to pay again on renovation and denting/painting which will cost you additional 1 Lakh. Shifting expense is very low - its well under 10K.Rent increase and depreciation: The only horrifying factor that tenant face is rent increase which is max 10%. Yes, you can always claim same flat at 10% increase in rent as per agreement, it can’t be more than that. Now lets say you pay 25K today. Generally it is 7–8% increase after negotiation. So it will be 25, 27, 29 (4th year) etc. But wait - it is hard to cross 30K as salary increase is very limited and there will be no takers at 30K+ rental. So it will be constant for few years. It works on market economics. I will give you my example - my rent increase of 3BHK was 10K,10.5K, 11K,12K,12.5K and then market correction happened at it turned to 10.5K, 11K, 11.5K yoy. So all those who are saying that it will increase exponentially are telling a lie. In future, it will be constant - regardless of price you see at nobroker or any other property website. If you want to buy 9 year old flat and you are getting brand new flat with same configuration at 20% premium- what will you take? New one ..right? So if your 60L flat is still at near 60L after 9 years. Your interest payment of 35L is additional overhead.Income tax benefits: This is #1 Zoomla played by real estate agent. Maximum income tax saving will be just 4 lakhs per annum. Apart from PF and other insurance contribution it actually come out to 3 lakhs per annum. So your 60L flat interest you pay on top of it will be near 4 lakh. So 3 lakh income tax benefit result into 1 lakh saving. Similarly, your rental give tax benefit - so rent tax benefit of about 45K. Difference is just 55K for an year against 4 lakh of interest. It is based on 30%Past is not the future: Price increase by 20–30% per year will never ever be repeated, appreciation can even go negative. So as per current unsold inventory it will be like -5%,-3%,-3%,-1% and then will give linear positive result. Remember, I am assuming investor will not start selling if they will.. then it will be like -5%, -8% ,-13%,-3%,-3% . So around 25–30% rate cut. It is hard to predict investors mindset. But they are at 200% profit - they can easily take 30% hit and liquidate.20 saal baad (after 20 years): After 20 years, you paid atleast 1.2 crore for 60 lakh flat. Your whole life gone in paying EMI; you were never able to quit job. Now that your beautiful flat started looking like haunted place from outside. Builders looks very old. It started eating up maintenance. If you are thinking of selling - no one gonna take it even at 50 lakh! Flat can be sold atmost in 10 years time period.Investment + Rent - Double Bonanza or Double Pain: Your flat value go drastically low after 10 years. If you are giving it on rent - there are lots of trouble. Rental yield is low; many societies don’t allow bachelors and your property can be badly misused. After 4–5 years, it will call for major repairing to maintain state. So calculation wise it is just replacing your rent. So no additional income.Home sweet Home : Home is just an emotional decision. Generally it is said that you should pay 20% in home. So to pay 60,000 monthly installments. Your package should be atleast 36 lakhs per annum. Okay, international rules don’t work in India so make it atleast 30 lakhs. If your package is under 30 lakhs; your whole life will go in paying EMI. You have to say good bye to your peaceful life and living meaningful life. I seen many people who purchased flats eating 50% monthly income and now living like very poor class - cut eating outside, travelling, came to train from plane etc.Verdict: House for investment is very bad idea. However, if you can afford easily(read Home sweet Home); can purchase home for yourself. It is good. It does not matter if you have to travel extra miles - once you have a home, you have permanent residential address. Go for 3BHK instead of 2BHK - because you may not be able to switch from 2BHK to 3BHK. If your package is not very high (less than 30 LPA); better start saving money and wait for few years. Market is anyway going down and you will find more lucrative prices in coming years.Remember - for home, search for peaceful locality - outside main city, where your family can live easily, you see the nature, not dirt and pollution. For rented, you can always take near your office. I see, it make huge sense to purchase flat at less polluted, nature rich environment which are at close proximity. It will be cheaper, better quality and people will be supportive.

Let me explain the difference between bribe and gift from an experience. I know of an IPS officer (now retired) who had a very innovative style of accepting gifts while at the same time remaining within rules. At the time of his wedding anniversary, his birthday, his kids’ birthdays, etc., he would show small gifts of Rs. 200 to Rs. 500 each from many individuals and then submit a report to the Government about receipt of such gifts in the form of a list. If I remember correctly at that time the maximum amount of gift that could be accepted by an IPS officer was Rs. 500.So, here is how he would do it. Let us say – today is his birthday. He would show that 200 guests / family friends / relatives gave him gifts ranging from Rs. 200 to Rs. 500 each. He would prepare a list of all these names and would submit this information to the Government as required under the rules. Suppose the average gift is Rs. 300, this means a total gift of Rs. 60,000 on one birthday. There were 4-5 such occasions in a year. On each such occasion, he would show receipt of gifts similarly. So, in a year, he could get total gifts amounting to Rs. 300,000 or so. Remember, in those days, the monthly salary for an IPS officer at his level was only about Rs. 4000 or so. So, a total gift of Rs. 300,000 a year would amount to salary equivalent of 75 months! And, he was still within rules!!Let me tell you frankly. I often used to wonder as to why did he not show the expenditure on the birthday party. Moreover, there is usually a custom of return gift on such occasions. What happened to that? Further, if you gift me something on my birthday, then generally speaking I would also gift you something equivalent on your birthday. But, as far as my information goes, that particular officer used to show mostly income side of the gifts only and did not show the reverse or expenditure side, otherwise the sum total would have been almost zero or might even have been negative. People used to say that he was adjusting his corruption income as a lawful income taking advantage of loopholes in the rules. Will come to the rules a little later.A somewhat similar method was later used by the BSP leader and former UP Chief Minister Mayawati. As per this media report:“According to a disproportionate assets case against Mayawati, she and her relatives were found to be in possession of 72 immovable properties, besides Rs 13 crore. But the chief minister has been insisting that she had acquired them through small donations.”You can read some more details about the disproportionate assets case filed by CBI against Mayawati at this link, as per which the CBI had claimed in 2007 that her assets had increased by Rs. 50 crore.So, Mayawati’s defence to the case of disproportionate assets [which is registered under Section 13(1)(e) of the Prevention of Corruption Act, 1988] was that she had acquired crores of rupees not through corruption but through small donations, which the High Court held that were tax-exempt.Divide your ill-acquired money into small amounts while disclosing to authorities since each such small amount would be within rules. Even if the authorities can smell something wrong, they are willing to accommodate you for obvious reasons.You would have seen from these two examples the difference between bribe and gift. Bribe is punishable under law, while gift is not.Now, let me throw some more light on difference between the two.Under the relevant Conduct Rules, every Government servant is allowed to accept gifts on traditional occasions (such as wedding, birthdays, anniversaries, etc.) up to a certain maximum limit.For example, under Rule 13 of the Central Civil Services (Conduct) Rules, 1964, on occasions such as weddings, anniversaries, funerals or religious functions, when the making of gift is in conformity with the prevailing religious and social practice, a Group ‘A’ Government servant may accept gifts from his near relatives or from his personal friends having no official dealings with him, but he shall make a report to the Government if the value of such gift exceeds Rs. 25,000. In any other case, such Group ‘A’ Government servant cannot accept any gift without the sanction (i.e., permission) of the Government if the value thereof exceeds Rs. 1500, which means that up to this limit of Rs. 1500, such Government servant can accept gifts from other persons also, without any permission from the Government.A Group ‘A’ Government servant was previously known as Class I Government servant. So, any person joining IRS (for example) would be Group ‘A’ servant; they are equivalent to IAS / IPS officers (who have different, but similar, rules).Thus, if you are accepting a gift within the limits mentioned above, such gift is permissible. Even if you violate these conditions and accept a gift beyond these limits, it may either be merely a case for disciplinary action, or it may also amount to a corruption case, depending on the facts.Now, what is bribe? It is basically any gratification (to simplify, you can call it any “money”) other than your legal remuneration which is accepted by a public servant as a motive or as a reward for doing some official favour or for having done some official favour, etc. The definition is very long, but I have cut it short to put it in simple words. You can read Section 7 of the Prevention of Corruption Act, 1988, for this purpose.In fact, Section 11 of the PC Act goes a little farther. Any valuable thing obtained by a public servant without consideration or with inadequate consideration from any person having official dealings may also be punishable. Here, there is no need for any specific official favour being shown for the receipt of that amount. Mere official dealings may be sufficient. Again, I have simplified this section leaving out more details. For example, if you take a house on rent for an amount of Rs. 10,000 when its market rent is Rs. 50,000 from a person with whom you have official dealings or likely to have official dealings, then Section 11 offence is made out.Thus, even a gift may also amount to a bribe if it is accepted as a motive or as a reward for doing some official favour or for having done some official favour, etc. Similarly, a gift may amount to an offence under Section 11 of the PC Act if it is from a person having official dealings with such public servant.You may notice that the borderline between gift and bribe is basically taking money from someone having official dealings, or from someone as a motive or reward for some official favour shown to him. So, there may be a thin line between gift and bribe.While giving this answer, I have tried to simplify things and have tried to explain the things without going into too many technical details. Since I am the author of a detailed 2250 pages book on Prevention of Corruption Act [Prevention of Corruption Act, Second Edition (2009), appx. 2250 pages, published by LexisNexis Butterworths Wadhwa, New Delhi (ISBN: 978-81-8038-592-6)], many such concepts are explained in that book in more accurate manner. What I have mentioned above is simple a answer in lay person’s language.