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.
Calculating capital gains on sale of property in India
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NRI - OCI - PIO Guide & Information
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
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.
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.
