We had given on rent to a tenant in year 2011, in Jan 2020 the tenancy expires (9 years), we had given notice in oct 2019, asking if he is willing to continue or not, he had some financial issue/business issue and also did not pay rent from nov19. tenant had requested in writing on his company letter head that to extend for 6 months with same rentals as he said he was waiting for some financial arrangement, for which we agreed (orally). Now some new tenant has come forward to takeover his assets lying and also our property on rent with fresh agreement. (new tenant is doing same business) Now the issue is the old tenant is asking to waive off rent from Jan20 to May 20 and also he is asking brokerage for getting new tenant which we feel is very unfair. We need to pay big amount after adjusting advance according to his working. Please let us know how to proceed. The new tenant is ready to do the agreement and start business, but old tenant is demanding money.
For time being you convey a message that you don't want to give your property on rent. And ask previous tenant to vacate the property along with the last six months rentals and loss you have suffered from him.
The adjustment you have done in past for tenant so today he is asking from you benefits and brokerage.
just denied and tell him you don't want to give your property on rent.
No waiver. He is liable to pay full due rent. Secondly, if new tenant is buying his assets and continue the business, that's not your look out. Neither you are bother to pay him anything. On the contrary, new tenant will allow only after he pays full rent otherwise take custody of assets to recover rent.
Refuse him straight and take possesion of his assets. Let the new tenant settle with him.
You don't require to do the same. You can ask him to pay your outstanding rent and vacate the premises if he is not willing to pay increased rent and follow terms
The new tenant has made some memorandum with old tenant to takeover the assets lying in our premises the details of which we are not aware. May be once we sign the new tenant agreement the new tenant will pay to old tenant to take over his assets. We dont want to lose the NEW tenant. The rental/lease agreement is already expired, what if we make a agreement with new tenant and ignore old tenant. (I am not sure if old tenant has already given the keys to new tenant) what will happen if the old tenant does not vacate and hold the property locked?
You can do the same. Only issue is if he doesn't vacate
But he cannot transfer tenancy. And dont let him take them. Tell him to first clear due rent.
Send notice of eviction and recover possesion by breaking lock. Video graphed it.
If you wish not to lose new tenant then you have to come to compromise with old tenant that either pay last six months rentals with increased market price and then you can pay brokerage to him little bit. how you can feel comfortable.
So all of you will be on one table conference.
You have to cross check always or every time on daily basis till such transaction gets completed.
You alone do not cross check with old and new tenant ask your any of family members to speak with them.
and can cross question regarding all your doubts about transaction and how you will complete this without paying to old tenant etc.
You can pay him brokrage as he brought client to you. Wiave off is illegal to demand.
How can he hold the property, if both new and old tenant donot come to settle than you can atleast get your premises vacated
1. It is not clear whether your tenant was the company or the individual. if it was company.
2. If it is company then it is liable for rent for the period it is holding your premises under it s possession .
3. The question of brokerage does not arise if you did not entrust your tenant to bring the new tenant.
4. The change in management of the tenant has no connection with the tenancy and you are not bound to accept the acquiring company is your new tenant.
5. My advice is to ignore this new company and bring a new tenant .
1) The old tenant is a Pvt Ltd Company (taken franchise of Branded co), this branded company cancelled franchise/dealership as he has done fraud, hence new franchise/dealer is taking over. 2) He also not remitted TDS to Govt from One year (but he says it is a compliance, they will remit & file return) more over he did not discuss in oral or in writing that he is bringing the new tenant and we need to pay brokerage. The fact is his business is doomed, the new tenant know about this and he liked our place, not only our place some other show room (not relating to us) also he is taking over on fresh rent.
1. Then make a new agreement with new terms and conditions.
2. In the new rent agreement you can take care these defaults including arrears rent.
He can sell his business but no authority to transfer tenancy neither he is authorise to find new tenant so no brokerage payable.
Refuse him straight.
Why are you into this TDS franchise and all...
Get a new agreement prepared from new person taki g over and continue.
File a complaint against the old tenant
Then you can totally ignore to old tenant and take the key in your hand or ask new tenant to take handover from him then you can make the agreement with him. otherwise follow you above my tricks intially.
1) no
need to agree for waiver of rentals
2) refuse to pay any brokerage
3) ask old tenant to pay rent arrears and vacate premises
Ask old tenant to vacate premises and give in writing that he has vacated premises
if he fails to pay rentals sue him to recover rent arrears
It is for you to take a call whether you want to waive rentals and pay brokerage
it is not in your interest to waive rentals for 6 months
Dear Sir,
First check antecedents of new tenant. It seems both them colluded with each other. The conduct of old tenant is suspicious. Please get the physical possession of building and display a sign board that the building is for “T0-let”. Definitely the old tenant objects for it. You must get present valuation of your building then go for a decision. Otherwise the old tenant may create problem for you. Your issue needs discussion.
If you can do the aforesaid directly with new tenant and possession is not disputed then you can go ahead
the tenancy expired in January 2020
thereafter there was a written request by the tenant for 6 months extension which was orally agreed by you - this also constitutes an AGREEMENT!!
if the tenant has used your premises for the extended period, he has no business to ask you for a waiver
that will be taken as a default and you can file an eviction suit against him claiming the arrears of rent with damages
however nothing fruitful would serve if you litigation. Moreso when there is a new tenant willing to take your premises on rent
the new tenant can definitely take over the old tenant's assets lying in your premises. You should not be bothered about it.
i suggest you first strike a deal with the new tenant by entering into a MOU or a term sheet
in meanwhile issue a legal notice to the old tenant to clear the arrears with interest
do not entertain any demand for payment of brokerage to the old tenant.
by signing the term sheet, the new tenant will agree that he approached you independent of the old tenant and thus there is question of paying any brokerage
if the old tenant does not comply with your legal notice for paying rental arrears with interest and vacating your premises as stated in your legal notice, then you can at the highest offer him one month's waive against the brokerage which he is demanding from you [since generally brokerage for renting is 1 month rent] and ask him to pay you the balance and also waive the interest
it is very certain that the old tenant is holding you to ransom and somehow wants to lower his liability which he owes to you
if he does not budge then you can file an eviction suit against him [you cannot now file an insolvency petition against him for recovery of rental arrears since new petitions under IBC are suspended by government]. In the eviction suit you can claim your rental arrears with interest and damages and also the legal costs which you have to incur for the same
i am sure he will come on the table to settle the matter then
1. IF old Tenancy Agreement has expired AND IF old Tenant is in arrears of the lease rent, THEN old Tenant has no rights left in anyway whatsoever and he becomes liable for prosecution for offences like Trespassing, Intimidation, Mischief, Nuisance, Breach of Trust, etc....
2. A SC judgement has held that Tenant has no right, whatsoever, to demand waiver of lease rent, BUT a bonafide Tenant (with agreement in force) may be provided deferment /delay in payment of rent for lockdown period.
3. You are advised to execute proper registered lease deed with new tenant, more so since the new tenant has already taken over assets of old firm (which is typically taken over with Assets & Liabilities)
From the facts explained by you, it is quite clear and evident that the present tenant is broke. He cannot pay the outstanding rents from January upto May 2020, correct, you had permitted him to continue in the premises knowing fully well that the agreement had expired in Jan 2020 itself. Orally you permitted him to continue, even though you had given notice of eviction way back in October 2019 itself.
Despite this, the present tenant claims he is willing to induct a new tenant in his place who is ready and willing to take over his business along with the inventories of the present tenant, details of which is not known to you. Under the present circumstances in my opinion you must pay the present tenant some brokerage after adjusting 50% of the outstanding rent (as compromise) and get rid of him and enter into a fresh agreement with the new tenant immediately.
There is no point in dragging the present tenant to court as he is already broke financially. No point wasting your time and money over him now.
- As per law, A person to whom a landlord grants temporary and exclusive use of land or a part of a building in exchange for rent.
- It means that if a tenant not paying the rent , then his tenancy status would be cancelled , and his status will be treated as trespasser.
- Further, in a recent order , Delhi High Court has held, that the tenants are liable to pay the rent for the period of lockdown , and suspension of rent owed for that period is not permissible.
- Hence,the old tenant is bound to pay the arrears of rent to you , even the agreement has been expired , otherwise he is bound to surrender the possession to you after paying the same.
- Further, the said old tenant has no right legally to sublet the tenanted portion due to any reasons , as his status in the tenanted premises is as tenant and not a broker.
- However, if you can settle the matter amicably , with the condition of payment of arrears of rent, and no need to pay the brokerage charges legally.
- No, the old tenant cannot hold the premises illegally, otherwise you can approach court for getting evicted him and to recovery of arrears of rent.
- If , you are going to accept the new tenant , then you should enter into a new contract , whereby must mention that the new tenant has already receive the assets etc from old tenant , and you are having no interference into the said business run by both of them , except the rent .
You need not agree for the requested waiver of rent for the five months period.
There is no legal obligation to accept his request, you can inform him that you will drag him to court for recovery if he is not paying the arrears of rent.
As far as brokerage commission for fetching the new tenant is your discretion.
You may agree to it or refuse to pay any brokerage based on your needs and the prevailing circumstances, if the new tenant is influenced by the old tenant to not to occupy because of your refusal to pay the brokerage, then you may decide about fixing any other client, with the given scenario of relaxation of the lock down conditions, you will certainly get another good tenant also.
You may decide.
The exchange of items between the old tenant and the new one is their problem, you do not have to interfere in it nor you should have any interest in it.
You should be concerned with your problem alone.
If the current tenant is not vacating the premises and not paying the rent then yo can issue an eviction notice and file an eviction suit also.
He is liable to pay the rent till such time he delivers the vacant possession of your rented premise.
1. That is not your problem, you should be worried about your problem alone, i.e., the regular rental payment and a good tenant who do not indulge in any illegal; activity in the rented premise.
Let them hand over or take over each other's assets, you should concentrate on your rental agreement alone.
2. If he is not paying the GST to the government then you may lodge a complaint against him based on the documentary evidences in your possession, he may have to answer the government on this.
Do not take any action in haste and repent over it at a later stage on this.
1. The tenant cannot claim any right to have the rent waived off, but due to lockdown he can delay the payment of rent till after lockdown is withdrawn completely and normalcy in every sphere of life is restored.
2. Delhi HC has in a recent case allowed tenant to delay the payment of rent, but refused to countenance his plea of waiver of rent.
3. Do not pay anything to tenant. He is seeking unjust enrichment. After withdrawal of lockdown file a petition for his eviction/
1. You are free to make a fresh rent agreement with the new tenant.
2. As I said earlier, file a petition for eviction of tenant after withdrawal of lockdown.
A father can not transfer the tenancy right in your favour without the consent of the landlord.
waiving of rent depend on mutual understanding between landlord and tenant.
Dear Sir/Madam,
You are suggested to be firm and a bit tactful. Say the first tenant that since the tenancy expired in Jan 2020, he should vacate the premises peacefully by paying the rent and should not ask any brokerage. The dealing of assets of first tenant and the taking over of the same by the new tenant is not concerned with you and you are suggested to ask the clarification from both of them. Also, do all the dealings in the written form so that you are never in any problem for the acts done by them.
1. Demand of current tenant is completely illegal he cannot demand waiving off the rent and also brokerage for transferring his own tenancy.
2. You cn take action against old tenant for not vacating your premises.
3. You can make separate agreement with New tenant without any interference from old tenant.
