Construction of rental property
I purchased a property with 6 shops in it at a prime location, however the rent receiving from the shops are too low in comparison to neighborhood.
Since I am the new owner of the property, I intent to remove the rentals and reconstruct the building so that I can go more floors.
I have the agreement papers of the rented shop. The have been in possession of the shop for last 25 years. How to proceed legally in this matter.
Regards and thanks
Asked 6 months ago in Property Law from Saudi Arabia
1. In which state you have purchased the said properties?
2. Did you purchase the property along with the tenants or you had purchased the property first and inducted those tenants?
3. The subject of evicting the tenants are governed by the Tenancy Act of your State,
4. You can file eviction suits against those 6 tenants siting reason that you require those shops for your own use,
5. Alternatively, you can negotiate with those tenants and execute a tripartite agreement assuring them that they will be re-inducted as tenants allotting larger area for their shops and start redeveloping your property,
6. Considering the long time taken for disposal of eviction suits, it will be prudent to take the alternative negotiation route to solve the problem.
You have to initiate evivtion proceedings against the tenants / occupants the premises before the court of law. If the premises sitiuated within GHMC , and current rent of perticular shop is less than Rs.3500/- you have approach rent controller court. You can seek eviction on personal occupation, demolish and construct.
1) if they have been a tenant for last 25 years they would be protected tenants .
2) you cannot remove the tenants if they have not carried on any unauthorised constructions nor sublet the premises and have been paying rent on time .
3)you would need consent of tenants to demolish existing structure and construct new building
You have to first issue legal notice to the tenants to vacate the shops since you are planning to demolish the same.
You can give a deadline for them to vacate the premises.
The adamant tenants may not vacate and may even give a reply stating that they are protected by tenancy rights etc.
You can either arrive at a compromise settlement against the agitators or file an eviction suit before the rent control/civil court
The cases in court will take its own time for disposal, it may be more than three years also hence decide judiciously based on your needs and priority..
The location is Hyderabad.
The property purchased included the land with constructed building and the owner provided the rent agreements of each individual prepared by him in 1993.
Since the owner was a senior citizen, he never tried to increase any rent and was satisfied with the rent from the rentals. However, he is moving to US forever, I purchased the property. I am also a far relative to him.
As a landlord, I need an advice for the following options:
1- Destroy the existing structure and build a new one with more floors which require the eviction of the current tenants.
2-Allow the existing tenants with new agreement and new rent charges in case I delay for construction.
3- Replace the existing tenants with new in case they don't agree for new rents as it will be too high to the current value.
4- Is there any condition where a tenant can claim the ownership of the shop if the agreement not properly drafted even though he signed a rental contract.
As per the contract, the tenants are liable to pay electricity and property tax regularly and promptly during the tenancy period. After the purchase, I discovered the tenants didn't pay the property tax for last two years.
The registration of the property happened three months back and no tenant send any rents to me or even the last owner till now.
At final, I need a simple solution to make them out to my choice of tenants and new terms of agreement.
Asked 6 months ago
1)the landlord has to inform the tenants thathe has sold the building and request tenants to pay rentals to you
2) you should also send letters to tenants to pay you rentals
3) also call upon them to pay the property taxes, electricity bill as provided in the tenancy agreement
4) you have to call meeting of tenants and inform them that as building is old and in dilapidated condition it needs to be demolished and construction carried out
5) terms of redevelopment has to be approved by tenants
6) generally in such cases tenants are given ownership rights of the equivalent area oif flat occupied by them
7) tenants will not agree for redevelopment merely if you are offering them tenancy rights only
Firstly, your vendor has to notify the tenants he had sold the property to you and since the rental agreement is about to expire, the tenants are to pay the monthly rental amount to the new owner till the expiration of the agreement and afterwards they have to vacate the premises or to enter into new rental agreement with the new owner of the building.
After that you have to notify the tenants that since you have purchased the property on so and so date, the tenants are instructed to pay the monthly rental amount to you either in person or credit the same to your bank account directly very month undr confirmation to you till the expiration of the present rental agreement which expires on so and so date.
The tenants may be instructed in the same notice that they are liable to vacate the premises on expiration of the present rental agreement on so and so date and if someone would like to continue the tenancy they may enter into a fresh rental agreement with you on the T&C mentioned therein or to vacate.
After that you may follow due process of law in this regard on further steps.
1. The landlord can evict the tenants only on the ground of his personal bona fide need. So you can file a petition for their eviction on this ground. The court can reassess the rent in accordance with fair market value during the proceedings.
2. If the tenants are willing to execute an agreement for reconstruction of building then this can be done but they will demand rehabilitation and also their pound of flesh.
3. If the tenants did not pay the property tax then this by itself is a ground for their eviction,
1. You shall have to first understand that you can not destroy the property or evict the tenants as per your wish since they have their tenancy right which you can not deprive them of if you so wish,
2. The tenants are there and will be there and it is not in your hand to allow or disallow there occupancy in your property as tenants. They may not agree to sign the new agreement or development of the property proposed by you,
3. You can not replace them legally as per your wish. Legal process to evict them will take years,
4. The tenants may claim ownership for agreeing for the development of the property and will insist for executing and registering an Tripartite Agreement with themselves, you and the developer for ensuring that they get their ownership of the shops. So, it will be prudent on your part to negotiate with them for mutual interest.
1. Yes for demolition of existing structure you have to evict the tenants from the shops 2. If existing tenants agrees for new agreement and new rent that will be good and well but generally they won't agree for that. 3. For replacing new tenants you have to evict the existing tenants which will take lot of times as per the existing court procedure and applicable laws. In fact the provisions of the AP Rent Control Act will be applicable to tenants since they are old tenants and generally it will take some time to evict them. We have to file eviction proceeding and as well as fixation of fair for increasing rent, however better to try with them with mutually. If not possible we have to move to court of law. 5. No there is no condition or any possibility that a tenant can claim the ownership of the shop under any circumstances . if any tenant claims ownership he is liable to evict on sole ground of denying ownership. You have to send letter to all the existing tenants informing change of owner and demanding to pay rents to you if stills they wont pay rent to you the will became will defaulter in payment of rent and are liable to evict. the best way is to initiate eviction proceeding against the tenants.