renting property in India

To have roof over the head, one does not have to own a property in India; or rather one does not have to buy it outright. There is a midway that a major share of people, today, are adopting. Renting is the easier and cheaper way of living with dignity and security. When renting a property one will not be given the rights of ownership and cannot actively participate is society decisions, unless the landlord legally hands over such rights.

The tenant occupies the property legally for a given period of time.
Renting a property is a two way benefit. The one who owns the premises gets a payment for someone residing in his property, while the one who pays the rent gets a place to occupy and live in. Some landlords, actually allow the tenant certain additional ownership rights such as placing the name board on the main door and removing the actual owner’s name.

Earlier renting of property was based on mutual understanding. There were no legal formalities or paperwork involved. But with the increase in this trend, and a lot of owners being cheated off their own investment, there have been some laws and rules established by the Government.

There is a legal agreement made between the owner of the property and the person to whom it is being leased. All the terms and conditions like the amount to be paid by the leaser, the handling of the property, maintenance of the property, liabilities, security deposit etc are pre decided and mentioned in the agreement. Both the parties need to sign it in front of witnesses and a copy of it has to be given to the local police station.

In cities where societies are formed, the tenant is approved of by the society management and the secretary of the society. A copy of the agreement may also reside with the secretary or president of the society. The person who would occupy the property has to abide by the rules and regulations of the society and maintain healthy living conditions around.

For commercial renting of property like land for some industry or shop or showroom, the procedure is the same. All the terms and conditions are mentioned on a stamp paper signed by both the parties in presence of two or more witnesses. The terms of payment of the rent is also decided and is not variable unless mentioned in the contract.