Legal Question in Landlord & Tenant Law in India

I am a landlord and own a hostel with 25 rooms which i gave on lease to someone 3 months back, who is supposed to give a fixed monthly rent to me and run the hostel himself. I have a rental agreement for the same for a period of 11 months. Now the person is not paying full rent for last 2 months, while the hostel is occupied with students he rented to. The rent amount is Rs 90000 per month but he has transferred a total of only Rs 40000 for last 2 months. I dont have much knowledge on indian rental laws but what i understand is sadly a court case will take years to complete, and am not sure if that will be in landlord's favour :( . Please provide some legal advice on this, if there is any faster route or any other way to get rid of this tenant.


Asked on 7/20/13, 10:05 am

1 Answer from Attorneys
Fca Prashant Chavan Expert Edge LLP

20.07.2013

Dear Sir / Madam,

This is a business to business relationship of Rs. 3,600/- per room per month and negotiation is the way forward. Since there are students who occupy majority of the rooms, their transition is very high, which could result in 25%-30% non-occupancy which percentage of vacancy could go higher during school / college vacations. You need to factor this vacancy into your calculations and expectations of lease charges. You can also agree with the party to whom you have given all the rooms on lease that in the event any room remains vacant for 2 or more months, you reserve the right to directly enter into a lease agreement with the students for that room. Alternatively, you can also bargain with the lessee and give him a discount to pay you Rs. 3,000/- per room i.e Rs. 75,000/- per month, but for all the 25 rooms irrespective whether any room is occupied or vacant. An Agreement for Leave and License (ALL) between a Licensor and Licensee automatically expires on the completion of the period, provided there is no auto renewal clause in the Agreement.

Regards,

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Answered on 7/20/13, 10:48 am


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