Description

Rent fixation is the process of determining the standard rent for a property, which is the amount that can be legally charged to a tenant. It's an important part of property valuation. The rent is usually based on a percentage of the annual interest on the capital cost of the property. The rent fixed must not be higher than the standard rate. In Tamil Nadu, the fair rent for a building is determined by the Controller after receiving an application from the tenant or landlord and holding an inquiry. The fair rent depends on whether the building is residential or non-residential: Residential buildings: The fair rent is 9% of the total cost of the building per year. Non-residential buildings: The fair rent is 12% of the total cost of the building per year.