• Rental agreement with property management firm

I own an apartment in Chennai. A property management firm approached me and they would like to enter into a rental agreement with them for 11 months where they would pay me the rent as well as the advance. Now the property management firm is entering into a lease agreement with tenant for my apartment. This lease agreement is for 11 months and then extended based on mutual consent. Now as an owner what should I look for in my agreement with the firm to protect my rights
Asked 5 years ago in Property Law
Religion: Christian

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15 Answers

Your rental agreement should be duly stamped and registered

2) there should be clause that in event rent not paid on time you can terminate agreement by giving one month notice

3) clause for payment of penal rent if they fail to vacate on expiry of agreement

4) firm would maintain your apartment and would be responsible for any damage caused to your apartment

Ajay Sethi
Advocate, Mumbai
94523 Answers
7485 Consultations

5.0 on 5.0

Hello

How can the firm enter into an agreement with the tenant without letting you know officially??subletting by the tenant cannot be done unless there is a specific agreement with you in the lease agreement. You should immediately warn the tenant of the consequences as subletting is a ground for eviction.

Regards

Rahul Mishra
Advocate, Lucknow
14083 Answers
65 Consultations

5.0 on 5.0

Sir firstly it should be specific in the rental agreement of yours that the company cannot enter into agreement extending your rental agreement meaning thereby there agreement should be in period between these 11 months only.

Secondly an indemnity clause that if company sub lease the property and any issue or damages or any civil suit arise the company shall indemnify you against the third party.

Further take cheques of complete rent period from them.

Further maintenance cost of society who will bear should be clear in agreement,

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

Get this agreement vetted through a lawyer. See if you've been given the option to get the tenants evicted after giving them an advance notice. This is important.

Also, the termination clause must be carefully drafted.

Vibhanshu Srivastava
Advocate, Lucknow
9588 Answers
303 Consultations

5.0 on 5.0

1. There should be a clause for annual increase in rental.

2. Notice period should not be longer than a month.

3. Liquidated damages should be included in the agreement.

4. Get the rental agreement drafted by a lawyer.

Ashish Davessar
Advocate, Jaipur
30763 Answers
972 Consultations

5.0 on 5.0

Clearly mentioned about the following things and right the term of the Tenancy

1. Amount of rent, security deposit, and other payments: The amount of rent decided by the parties and mode of payment; cash, cheque or demand draft is usually used and also mentioned about due date.

2. Duration of agreement and renewal criteria- clarify about the lock-in period, during which neither the tenant nor the landlord can terminate the agreement, and ensure it’s mentioned in the agreement as well

3. Repairs and Maintenance Charges

4. List of fittings, fixtures and amenities- keep the building in a neat and good condition and shall take care of all the electric fittings, points, lights, sanitary and fans in and about the building all of which belong to the Lessor- not sublet and / or transfer possession of the building

5. Grounds for Eviction - Notice Period

6. Shall not carry any addition, alteration or improvements in or about the Building concerned without written consent of the Lessor. Shall not store or cause to be stored any combustible or inflammable materials or items anywhere in the building or its premises

7. Purpose of rental – Residential or commercial

8. Clarity of costs associated, such as; Electricity charges and water charges, society fees, and other charges

It should be register.

Ajay N S
Advocate, Ernakulam
4072 Answers
110 Consultations

5.0 on 5.0

Hello,

Make sure that in the agreement there is a specific mention that there is no transfer of title and that the firm has approached you for management of the property.

Also make a clause of taking an exit from the firm as and when required.

Make sure that the terms of deed are favoring you.

Regards

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

1. stipulated date for payment of rent

2. interest/penalty for late payment

3. checking credentials of the firm's tenant to ascertain he will not use your premises for any illegal purpose

4. firm to be responsible if there is any damage of a structural nature caused to your premises

5. all icenses for rental business to be obtained by firm. On expiry of license the firm to cancel all such licenses and obtain valid discharge

6. GST implications?

7. cost for evicting the tenant of the firm in case he overstays in your house

8. tenant not to cause any nuisance or annoyance to others in vicinity thereby making you liable for any criminal offense

9. there are many things to be looked at to protect your legal rights

advisable to have the rental agreement with the firm registered

Yusuf Rampurawala
Advocate, Mumbai
7485 Answers
79 Consultations

5.0 on 5.0

The draft agreement needs to be studied in order to advise you properly. However, generally speaking, you have to peruse these clauses and ensure they protect your interests adequately: period of lease; date of commencement; date of termination; amount of rental deposit; rate of rent; date of payment of monthly rent; any penalty for delayed rental payment; condition for sub-letting, if any; prohibition of any illegal activity in the demised property; condition not to alter the structure of the demised building without your express, prior consent during the tenancy term; notice period for early termination of lease, if any; vacating and delivering up vacant possession of the demised property without demur upon termination of lease in good, tenatable condition.

Swaminathan Neelakantan
Advocate, Coimbatore
2773 Answers
20 Consultations

4.9 on 5.0

If the property management team had entered into a rental agreement with you then the lease agreement they entered with the prospective tenant would be termed as sub letting, if there's no particular clause approving this arrangement then this can be termed as breach of contract.

It may not be enforceable in law.

Hence you may be little careful while entering into this rental agreement.

T Kalaiselvan
Advocate, Vellore
84722 Answers
2172 Consultations

5.0 on 5.0

1) you would be entitled to rentals irrespective whether third party pays rentals or not 

 

2) it is necessary to peruse your agreement toadvice further 

Ajay Sethi
Advocate, Mumbai
94523 Answers
7485 Consultations

5.0 on 5.0

Sir this clause shall protect your rights in meaning firstly the company can further sublet in terms of your contract only.

Secondly it shall pay you rent no matter it sublet or not.

 

Shubham Jhajharia
Advocate, Ahmedabad
25514 Answers
179 Consultations

5.0 on 5.0

A lease of immovable property is a transfer of right to enjoy such property made for a certain time expressed or implied or in perpetuity, in consideration of a price paid or promised, or of money, share of crops, service or any other thing of value, to be rendered periodically on or specified occasions to the transferor by the transferee, who accepts the transfer on such terms.

Under Rent Control Acts of almost all the States sub-letting is prohibited unless it is with the consent of the landlord.

Under Transfer of Property Act there cannot be splitting of tenancy. Sub-letting is a mixed question of law and fact. Sub-letting three things are required; agreement, delivery of possession and rent.

Here your permission is given so you could not take as subletting is a cause for eviction  of  tenant in future

Ajay N S
Advocate, Ernakulam
4072 Answers
110 Consultations

5.0 on 5.0

Yes this does protect your right.

Before signing the agreement, ask some advocate to read the entire agreement 

Anilesh Tewari
Advocate, New Delhi
18077 Answers
377 Consultations

5.0 on 5.0

The draft agreement needs to be studied in its entirety in order to render you proper advice.

Swaminathan Neelakantan
Advocate, Coimbatore
2773 Answers
20 Consultations

4.9 on 5.0

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