Without this clause written in, the rent stays exactly where it started for the whole term, since an owner cannot raise it mid-way just because costs have gone up elsewhere. In Bengaluru, a rise of five to ten percent a year at renewal is commonly quoted as the norm, though the agreement's own wording is what actually governs, not the convention. We check this clause is in the draft before signing, not after a renewal notice arrives.
The number
Commonly quoted at 5 to 10 percent a year at renewal. Karnataka has not adopted the Model Tenancy Act, so no statutory figure applies here; the agreement's own wording governs.
Sources
Where it comes from. Level 1 is a government or court page, level 2 established press, level 3 a portal's explainer, which gives only what is commonly quoted.
- LegalSetu, how much rent can be increased per year in India, https://legalsetu.co.in/blog-rent-increase-rules-india, level 3