• Renewal of leave and license

I am renewing my 2nd term of leave and license agreement with the pre agreed rent increment of 7%. 

The landlord now wants to remove the clause of rent increment so he can decide upon completion of the term whatever increment he wants. 

How is this fair? Is there a way to determine the market rate or agree on a fair increment ahead of time?
It feels like the licensee has no control at all in this regard.

Please advise
Asked 4 years ago in Property Law
Religion: Hindu

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10 Answers

hello,

the landlord is the owner of the property and hence can enhance the rent as and when he likes although it should be mentioned in the agreement. but if it is not or the landlord intentionally wants to remove this clause you have to accept the agreement. if the house comes under the rent control act then that is a different thing altogether. the tenant cannot decide the rent the landlords' charges is based on the demand and supply, the location etc.

regards

Rahul Mishra
Advocate, Lucknow
13760 Answers
65 Consultations

5.0 on 5.0

The rent increment should be specified in agreement

2) it is not fair that landlord demands any fancy rental amount for renewal of agreement

3) do not agree to such a clause

Ajay Sethi
Advocate, Mumbai
87947 Answers
6207 Consultations

5.0 on 5.0

Rent control laws have provisions for a court to fix standard rent and permitted increase in rental each year. Owners of residential or commercial properties not only have a right to charge rent at market rates from their tenants for taking the premises but also to raise the rent periodically. In India, the applicable rate of rent increase is around 10 per cent, every two or three years, for residential properties.

Rent control laws also have very strong provisions against the eviction of a tenant from a property. a tenant cannot be evicted, if the tenant pays or is ready and willing to pay standard rent and permitted increases

Ajay N S
Advocate, Ernakulam
3991 Answers
93 Consultations

5.0 on 5.0

1. Agreement us valid whether it is oral or written.

2. However once an agreement is put into writing then all the terms mutually agreed must be incorporated i the agreement.

3. So if any term is though agreed missing in the written agreement the same can not be considered as mutual understanding and either of the parties can refuse to comply it.

4. So i ca not advise you to agree on this proposal. Whatever is agreed between the two must be mentioned in the agreement.

Devajyoti Barman
Advocate, Kolkata
22515 Answers
402 Consultations

5.0 on 5.0

Sir,

The licensor cannot decide as per his whims and fancies as to what amount he has to charge from the licensee. He can charge as per the area and market norms.

Garima Anil Mehrotra
Advocate, Mumbai
514 Answers
1 Consultation

4.9 on 5.0

This is my response to you:

1. You can send him a formal letter stating that the increment is invalid;

2. The increase should be in proportionate manner;

3. As per section 10 of Maharashtra Rent Control Act, 1999, Rent in excess of standard rent is illegal;

4. You can file a complaint to the authority established under the act;

5. If that does not resolve then approach the Court and the court under section 8 will decide the rate of increase.

Gowaal Padavi
Advocate, Mumbai
1920 Answers
5 Consultations

5.0 on 5.0

1. rent increment is a subject of mutual agreement between the parties

2. if you are not happy with the quantum of increment then you are always at liberty to terminate the license and handover the property to the landlord

3. the market rate for rent does not apply in the event of contractual arrangement between the parties

Yusuf Rampurawala
Advocate, Mumbai
6882 Answers
79 Consultations

5.0 on 5.0

Dear Client,

Its his land and he will included such terms which will benefit him, Well there is provision of fixing standard rent and increase of rent in the rent control act, which u can invoked on next renewal.

Certainly licensees has no exclusiveness right on property as of in lease deed.

Yogendra Singh Rajawat
Advocate, Jaipur
21481 Answers
31 Consultations

4.4 on 5.0

Sir since it is contractual tenancy the parties can mutually decide for the amount and increment since in case it is not acceptable you. You can deny to sign same and can ask the land lord to modify terms or the premises can be vacated.

Shubham Jhajharia
Advocate, Ahmedabad
25516 Answers
179 Consultations

5.0 on 5.0

Instead of leave and license you may enter into rental agreement so that it will have more rights for tenant.

5% to 7% increase in the annual rent is normal.

T Kalaiselvan
Advocate, Vellore
78104 Answers
1543 Consultations

5.0 on 5.0

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