• Keeping students as tenants in a flat

I have legally owned 2 bedroom flat in Pune in which I keep 3 to 4 students / young professionals on sharing basis, as "tenants" for varying duration between 6 months and 2 years. So far I have not used a formal Leave and License agreement as a basis for the tenants. The "rent agreement" is done on an informal / verbal basis so far. The fact that, 1) such tenants change off and on, 2) the tenants are reluctant to spare time (half a day) to go to Registration Office for L&L, and 3) sharing the cost (upto Rs. 5000/-) -- are the main reasons for the informal/ verbal arrangement.
 Question: Does such informal arrangement put me in a Legally un-tenable or difficult situation if I come across an awkward tenant with malafide intention over my flat? Is there any mechanism which can cater for changes in the mix of 3 - 4 occupants who share the flat, from time to time, in case a L & L agreement is created. Or is a L&L agreement is a must for each of the tenants, individually ?
Asked 7 years ago in Property Law
Religion: Hindu

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7 Answers

1) in mahrashtra leave and licence agreement are required to be compulsory regsitered

2) if licencees refuses to vacate you will have to file eviction suit against said licencee

3) mere verbal agreement can land you in serious trouble . student can claim tenancy rights

4) better enter into leave and license agreement with 2 students only

5) also prior permission of society is a must

Ajay Sethi
Advocate, Mumbai
95223 Answers
7612 Consultations

5.0 on 5.0

Dear Sir....

you can file the matter in small cause court..for eviction ....there two provision ...first is below the twenty thousand ..rs rent......matter will not proceed ...above than 6 months..

Best Regards

Mob-No-[deleted]

Feroz Shaikh
Advocate, Navi Mumbai
407 Answers
58 Consultations

4.4 on 5.0

If a formal leave and license agreement is made registration of it is mandatory.

In your case due to frequent changes iof students it's not advisable to make such formal agreement.

Verbal arrangements is fine.

If if think students may indulge in nuisance then make an unregistered agreement.

Devajyoti Barman
Advocate, Kolkata
22921 Answers
498 Consultations

5.0 on 5.0

According to the Maharashtra Rent Control Act, 1999, the responsibility of getting the agreements registered shall be on the landlord. Those who contravene the law can be imprisoned up to three months or be fined Rs 5,000. In some cases, both the penalties will apply.

2) further no police verification would be issued for un regsitered leave and licence agreements

3) since stamp duty on leave and licence agreement is only 0.25% of the total rent and registration fee is Rs 1,000.advisable to regsiter the agreement

Ajay Sethi
Advocate, Mumbai
95223 Answers
7612 Consultations

5.0 on 5.0

1. A Leave and License agreement is a condition precedent if you are to avail the protection of rent control laws. It will be difficult for you to evict a tenant if he overstays if you do not have a proper lease deed or leave and license agreement.

2. Get the agreement drafted by a lawyer and have it registered.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

Since this tenancy is oral, it would be difficult to prove his tenancy rights by the tenant if he creates problem and asked to vacate the premises.

There is no provisions for L&L for sharing the accommodation but it is an arrangement and mutual agreement

The drawback in such a case would be that Properties tend to suffer more wear and tear when let to students, and as a result you are likely to spend more on maintenance at the end of a tenancy than you would with a traditional let.

T Kalaiselvan
Advocate, Vellore
85424 Answers
2239 Consultations

5.0 on 5.0

Is an unregistered Leave & License agreement of any benefit or a liability, in case a tenant refuses to leave ?

Student tenants can be difficult to reference using the standard process, because they do not have a regular income and have usually come straight from living with parents. Instead, you should seek a guarantor for each student tenant. Usually a parent or guardian, the guarantor will themselves be referenced and is responsible for the rent if the tenant should fail to pay or any other problem.

T Kalaiselvan
Advocate, Vellore
85424 Answers
2239 Consultations

5.0 on 5.0

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