Property tax, utility bills and society maintenance charges can add significantly to the cost of renting a home. But who is responsible for paying these charges — the landlord or the tenant — depends on the nature of the expense and the terms of the tenancy agreement.In India, the division of these expenses is governed by applicable municipal or state laws, the Transfer of Property Act, 1882, and the terms agreed upon by the landlord and tenant in the tenancy agreement.Who pays property tax:Property tax is the owner’s liability. Municipal laws such as the Bombay Municipal Corporation Act and similar state regulations treat the landlord as the one who is responsible for paying the tax. The municipality may, in some cases, recover from the occupier if the owner defaults, but the primary burden remains with the owner.In case a landlord fails to make a payment that they are legally or contractually bound to make, and the amount is recoverable from the tenant or against the property. Section 108(g) of the Transfer of Property Act, 1882 permits the tenant, subject to the applicable contract and law, to make the payment and deduct it with interest from the rent or otherwise recover it from the landlord.Utility charges:Water, electricity, gas and other consumption-based utilities are generally payable by the party responsible for the consumption under the tenancy agreement and applicable local law.In ordinary residential tenancies, these charges are usually paid by the tenant because they arise from the tenant’s consumption.What about society charges:For flats in cooperative housing societies or apartment owners’ associations, maintenance dues are generally the responsibility of the owner or member of the society, under the applicable state legislation, rules and society bye-laws.The Supreme Court has recognised the liability of cooperative-housing-society members to pay charges determined in accordance with the applicable rules and bye-laws, and societies can take steps to recover outstanding dues from members.However, applicable state legislation, rules or society bye-laws may permit certain charges to be imposed directly on, or calculated differently for, tenants or occupiers. A tenancy agreement can also require the tenant to reimburse the landlord for maintenance charges.
