• How can a owner recover money from a tenant for shortage in notice period

Hi, We had a tenant who notified us on Feb 1, that he will be vacating on Feb 25 and vacated.the house on Feb 25. Since he had only given us one month notice and the house has been vacant since then ( since we could not get any new tenants so far ) , we were planning to deduct the rent for March and April and refund the deposit. But the tenant claims that as per law, we could have deducted the shortage of notice period money only if we had returned the deposit on Feb 25 ( the day he had vacated ). Since we did not return the deposit on Feb 25 and he is coming back on May 1 ( after 3 months completion ) , we cannot deduct any notice period shortage money and we have to return the full deposit. Please clarify the legal position on this.

Thanks
Asked 4 years ago in Property Law
Religion: Hindu

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13 Answers

If tenant has failed to give notice as per clause in leave and licence agreement then you can recover shortfall in notice period against the security deposit

2) not necessary for you to return full security deposit

Ajay Sethi
Advocate, Mumbai
87938 Answers
6207 Consultations

5.0 on 5.0

See maximum you can do as per law here is you can deduct one month rent as the complete notice period was not given the tenant has to compulsorily give notice of one month.

but you cannot deduct for subsequent month as tenant can file a recovery suit against you for recovery of the amount.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

There must be clause in leave and licence agreement that security deposit be returned simultaneously with tenant vacating premises

2) in case there is some delay in refunding SD you can adjust it against shortfall in notice period

Ajay Sethi
Advocate, Mumbai
87938 Answers
6207 Consultations

5.0 on 5.0

See rightly it was to be returned after deducting reasonable amount on same date but if tenant has not approached for said amount if shortfall of 2 months is there deduct the amount repay the remaining amount to tenant

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

1. So it seems that the tenant is required to give a notice of 3 months to you of his intention to vacate the premises.

2. In case he gives a shorter notice period, has anything been provided in the contract that you will be entitled to deduct rent for shortfall period from deposit and refund the balance?

3. If there is any such provision then you are entitled to deduct.

4. If there is no such provision then you can tell the tenant that the main intent of having a clause requiring the tenant to give 3 months notice for termination of contract, is to ensure that the premises are not left unoccupied and the owner should not lose rental money for the time the premises remain unoccupied.

5. The justification given by your tenant to refund full deposit amount sounds to me as completely absurd.

6. Tenant issued termination notice with a shorter notice period. He also vacated the premises and handed over possession to you on expiry of his notice. So the contract is already concluded and terminated.

7. Tenant can't say that since he's returning on may 1 and since you did not refund his deposit on the day when he vacated the premises, he is entitled to refund of full deposit.

8. Generally the landlord is required to refund the deposit simultaneously with the tenant vacating the premises. Since you did not refund when he vacated, at the highest the tenant will be entitled to interest from you on the deposit amount for the period you withhold it after his vacation.

9. So my advise is to deduct the 2 months rent from the deposit and on the balance deposit you compute interest at a reasonable rate and then refund the balance deposit plus interest thereon to the tenant.

10. The tenant will obviously object. In that case you can reduce the amount of deduction from deposit and arrive at a mutually agreeable value. This would be better than taking the matter legally and fighting over it.

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

1. The tenant is wrong in interpreting law.

2. He has already left your tenanted house. So, it is in your possession now and is vacant.

3. There is no law which states that if you delay in deducting, you can not deduct the rent for the balance notice period later on.

4. Deduct the rent for March and April and refund him the advance amount paid by him by depositing it to his bank account or by remitting it to his said account.

5. If his account no. is not known, then send him the cheque for the balance amount at his address by speed post with a covering letter.

Krishna Kishore Ganguly
Advocate, Kolkata
26602 Answers
726 Consultations

5.0 on 5.0

Hello sir, if he has delayed in intimating about the vacating of flat as per the rental agreement,then yiu are legally entitled to retain the deposit amount of the delayed time period

Hemant Chaudhary
Advocate, Gurgaon
4619 Answers
67 Consultations

4.9 on 5.0

No. It is not mandatory that you shall have to return the balance amount on the day of his vacating to be eligible to deduct the rent for the balance notice period which he is supposed to give as per your tenancy agreement signed by both of you.

Krishna Kishore Ganguly
Advocate, Kolkata
26602 Answers
726 Consultations

5.0 on 5.0

What is the condition of rental agreement in this respect?

Is there any condition mentioning that the tenant has to give three months notice to vacate the premises if he is intending to vacate the same before expiration of the term of agreement?

What is the term of agreement, is it 11 months or beyond that?

If beyond 12 months, then for enforcing the condition through court of law, the agreement should have been registered before a jurisdictional sub-registrar, have you done it?

What made you not to inform the tenant about this on that date when he was vacating the premises that too after having informed you in advance about it?

The above are questions of law, if you dont have answers for all these then you may not be able to initiate any legal action on this?

T Kalaiselvan
Advocate, Vellore
78097 Answers
1543 Consultations

5.0 on 5.0

So, it is not compulsory to return the deposit on the day the tenant vacates the premises, when there is shortfall of notice period ( in our case, there is 2 month's shortfall of notice period)

Return of the security deposit on the date of vacating the premises or delivering vacant possession is the law, but generally the landlord withholds the deposit for few days citing various reasons namely deduction of painting charges or repair charges or electricity consumption charges or water tax etc.

T Kalaiselvan
Advocate, Vellore
78097 Answers
1543 Consultations

5.0 on 5.0

Firstly, it goes only according to the agreement between the landlord and tenant.

Secondly, if it talks about not to refund the deposit if no proper notice period has been served then no need to return the full, can deduct the loss you suffered.

Thirdly, if there is no contract then you or he anyone can give 15 days notice period and vacate the same if it was for residential purpose. And you would have to return the full deposit.

So, please go through your own agreement first then try to clarify the same.

Sanjay Baniwal
Advocate, South Delhi
5464 Answers
13 Consultations

5.0 on 5.0

Hi,

You may deduct for shortfall period.

Ganesh Singh
Advocate, New Delhi
6646 Answers
16 Consultations

4.5 on 5.0

Dear Sir,

The recent law in Tamil Nadu is as follows

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Tamil Nadu Regulation of Right and Responsibilities of Landlords and Tenants Act, 2017

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http://www.stationeryprinting.tn.gov.in/extraordinary/2017/229_Ex_IV_1_E.pdf

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Lists down responsibility of parties, rent courts to be constituted

The Tamil Nadu Regulation of Right and Responsibilities of Landlords and Tenants Act, 2017, which was tabled in the Assembly on Friday, seeks to rewrite the law on various aspects of tenancy including the agreement between the landlord and the tenant, obligations of both the parties, terms for evicting a tenant and division of maintenance responsibilities.

The Act, introduced by Housing Minister Udumalai K. Radhakrishnan, seeks to repeal the Tamil Nadu Buildings (Lease and Rent Control) Act, 1960. It states that the landlord shall intimate the tenant two months prior to the expiry of the 12 months about the revision in rent.

“Where the landlord doesn’t accept any rent and other charges payable or refuses to give a receipt, the rent and other charges shall be sent to the landlord by postal money order or any other method as may be prescribed consecutively for two months, and if the landlord doesn’t accept the rent and other charges within the said period, then, the tenant shall deposit the same with the Rent Authority,” states a provision in the ‘Obligations of Landlord and Tenant.’

Both the landlord and the tenant shall be bound to keep the premises in good condition, and in case of refusal by either of the parties, the other party shall deduct the amount from security deposit (in case of landlord) or from monthly rent (in case of tenant).

The legislation also states that no landlord or tenant shall cut off or withhold any essential supply or service on the premises occupied by either.

In case of such incidents, the Rent Authority will pass an interim direction and conduct an inquiry and levy a penalty on the persons responsible.

‘Misuse of premises’

The Act also defines the term ‘misuse of premises’ as “encroachment of additional space by the tenant or use of premises which causes public nuisance or causes damage to the property or is detrimental to the interest of the landlord or for an immoral or illegal purpose.”

Kishan Dutt Kalaskar
Advocate, Bangalore
6050 Answers
381 Consultations

4.8 on 5.0

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