Renting Property in India - Benefits of Leave & License agreements

Tips when giving property on Leave and License

1. Don't let out your property to anyone unless you check the person who is renting the property. While it is not possible in India to get background check done easily, you could take some precautions, such as checking the person's employment record, previous address etc. 2. Don't hand over your property in trust and good faith to anyone regardless of how well they impress you, without checking proper documentation and finding out who exactly is going to occupy your property. When renting to a foreigner, local police should be informed. This is now required by law in many cities. 3. Use a professional to draft the agreement. A lawyer is preferable than a real estate brokers who have a pre written template for an agreement and just fill in the blanks. 4. Pay the required stamp duty for your agreement and register it legally. Unless the agreement is registered, you have no protection. 5. If property is located in a society, then take a No Objection Certificate (NOC) from the society so as to avoid problems in future. 6. It may be advisable to enter into an agreement of only eleven months, and renew if you find things are working out well for you. 7. In cases where a rental agent, such as a broker brings the client, you may consider adding in the agreement that no further brokerage will be paid, if and when the license agreement is renewed. Brokers in India normally charge one month rent as their fee.

Difference between Agreement and Leave and License

Repatriation of Rental Income

Non resident Indians and PIO’s who rent their properties in India can easily repatriate the rental income to their countries of residence once due taxes on rental income are paid. Rental prices in major cities have increased quite a bit. Many reputable companies also rent flats and houses to keep as guest residences as hotel prices in India have risen considerably.
Leave & License Lease / Rental Agreement Possession is said to remain with the landlord, the licensee only gets permission to use the premises. Possession in such cases passes to tenant. Subletting is not possible under leave and license agreement. Subletting may be possible under either the lease agreement or by rental legislation laws. Rent control does not apply. Rent controls may apply as per rent laws if any. In a case where, the person who is the licensor of the property dies. The license is automatically terminated. Lease agreement would not terminate in case of death of the landlord. Advance rent can be charged. Would be subject to provisions of the applicable Rent Control Legislation. Easier eviction possible after expiry of license. Regulated by Rent Control laws and may take more time if tenant contests. more info more info
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Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail. © Copyright 2006 Nriinformation.com
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Renting Property in India - Benefits

of Leave & License agreements

Tips when giving property on Leave and License

1. Don't let out your property to anyone unless you check the person who is renting the property. While it is not possible in India to get background check done easily, you could take some precautions, such as checking the person's employment record, previous address etc. 2. Don't hand over your property in trust and good faith to anyone regardless of how well they impress you, without checking proper documentation and finding out who exactly is going to occupy your property. When renting to a foreigner, local police should be informed. This is now required by law in many cities. 3. Use a professional to draft the agreement. A lawyer is preferable than a real estate brokers who have a pre written template for an agreement and just fill in the blanks. 4. Pay the required stamp duty for your agreement and register it legally. Unless the agreement is registered, you have no protection. 5. If property is located in a society, then take a No Objection Certificate (NOC) from the society so as to avoid problems in future. 6. It may be advisable to enter into an agreement of only eleven months, and renew if you find things are working out well for you. 7. In cases where a rental agent, such as a broker brings the client, you may consider adding in the agreement that no further brokerage will be paid, if and when the license agreement is renewed. Brokers in India normally charge one month rent as their fee.

Difference between Agreement and

Leave and License

Repatriation of Rental Income

Non resident Indians and PIO’s who rent their properties in India can easily repatriate the rental income to their countries of residence once due taxes on rental income are paid. Rental prices in major cities have increased quite a bit. Many reputable companies also rent flats and houses to keep as guest residences as hotel prices in India have risen considerably.
next
previous
next
Disclaimer: Information provided is for general knowledge only and should not be deemed to be professional advice. For professional advice kindly consult a professional accountant, immigration advisor or the Indian consulate. Rules and regulations do change from time to time. Please note that in case of any variation between what has been stated on this website and the relevant Act, Rules, Regulations, Policy Statements etc. the latter shall prevail. © Copyright 2006 Nriinformation.com
Leave & License Rental Agreement Possession is said to remain with the landlord, the licensee only gets permission to use the premises. Subletting is not possible under leave and license agreement. Rent control does not apply. In a case where, the person who is the licensor of the property dies. The license is automatically terminated. Advance rent can be charged. Easier eviction possible after expiry of license. Possession in such cases passes to tenant. Subletting may be possible under either the lease agreement or by rental legislation laws. Rent controls may apply as per rent laws if any. Lease agreement would not terminate in case of death of the landlord. Would be subject to provisions of the applicable Rent Control Legislation. Regulated by Rent Control laws and may take more time if tenant contests.