Rent Property:

It has become very difficult to rent your house in India due to Indian laws that favor tenant, rather than homeowner. There have been examples where the house tenants have refused to vacate the house and have claimed the right to ownership. This is a very common problem in India.

• Make sure that the property you would like to give on rent is clearly on your name and the legal documents to that effect are in your possession.
• Start looking for the tenant for your property through the advertisement in the news papers or through property agents who can find tenants for you.
• Once the tenant approaches you, show him the complete property and specify the exact rent you would like to have.
• There are many options for giving the property on rent but the most appropriate option is to give your property on rent under live and license for the period of eleven months. This procedure has been approved by Indian laws and the owners would have minimum problems in giving their property on rent.
• The legal agreement is to be made for such leave and license procedure on non judicial stamp paper valuing to Rs.100. Such stamp papers can be purchased from any stamp vendors available outside the court building. You will need to give your full name and the detailed address while purchasing such stamp paper. The stamp paper must be bought in the name of the property owner and not in the name of the tenant.
• After this, the standard legal draft is to get typed on this stamp paper. Such standard draft can be easily available from any practicing lawyer or from any licensed notaries. Draft for Leave and License agreement here
• Once such agreement is typed on the stamp paper, both the parties as to the owner and the tenant would have to sign at the bottom of the deed of the agreement in presence of the district magistrate or the Notary. If the owner has a Power of Attorney holder, he can sign on behalf of the owner. Draft of Power of Attorney here.

Once this is done, the deed becomes legally valid and effective. The agreement also specifies that both owner and the tenant can terminate this agreement with one month notice on either side. At the end of eleven months, the owner/tenant may renew or terminate the legal deed as per their wish. Such eleven months agreement offers equal flexibility to both the parties to end the agreement at the end of the period of eleven months. As equal powers are given to both tenant and the owner in such deed, it is treated as valid and acceptable in all courts of law in India. The house owner must show this income of rent in his annual income tax return every year in order to avoid tax problems at a later date.

It is really very easy and convenient to give your property on rent under this procedure and is also valid legally in all the courts of India. We have given our clients properties on rent under such agreements for more than ten years without any problems. We would strongly suggest adopting this eleven months live and license procedure while giving the house on rent in India.

For rent inquiry click here