WHAT TO KEEP IN MIND WHEN RENT­ING OUT YOUR FLAT

The in­ter­est com­po­nent un­der home loans can be claimed as sep­a­rate de­duc­tion un­der sec­tion 24

HT Estates - - NEWS - Rent and other pay­ments: Lease ten­ure and ter­mi­na­tion: Us­ages: Re­spon­si­bil­i­ties: Pri­vacy rights: Re­mem­ber:

If you are rent­ing out a res­i­den­tial prop­erty, you should pay at­ten­tion to the lease doc­u­ment. In order to avoid pitfalls and dis­agree­ments from crop­ping up dur­ing the ten­ancy, one needs to en­sure that the rental agree­ment is rea­son­able and not uni­lat­er­ally skewed to­wards ei­ther the land­lord or the ten­ant. There are a num­ber of es­sen­tial com­po­nents that ev­ery res­i­den­tial lease should have which en­sure that your in­ter­ests are not com­pro­mised later.

Some of the key com­po­nents of the lease agree­ment in­clude the amount of monthly rent, the pay­ment mode and pay­ment due date, and the pe­ri­od­ic­ity. Also, the lease agree­ment clearly de­mar­cates the re­spon­si­bil­ity of the ten­ant to pay the util­ity bills and the pe­ri­odic maintenance charges.

An­other crit­i­cal part of the rental agree­ment is the ten­ure of oc­cu­pancy and when the lease will ex­pire. The agree­ment should ide­ally have ter­mi­na­tion clauses as well and how many months’ rent would be re­tained, in case of any whether the doc­u­ment is a set­tle­ment which would re­quire reg­is­tra­tion or is only a record of a past set­tle­ment would de­pend on the na­ture of clauses con­tained. ter­mi­na­tion. It should also have clauses re­lated to pre­ma­ture ter­mi­na­tion of the lease and the no­tice re­quired for ex­er­cis­ing such ac­tions.

It may clearly spell out that the premises should not be used for com­mer­cial uses in­clud­ing of­fices etc. Also, it can put re­stric­tions on the num­ber of guests the ten­ant can have, for long pe­ri­ods. It may also pre­vent any sub-leas­ing of the prop­erty by the ten­ant.

The agree­ment may spell out clearly the re­spon­si­bil­i­ties of the ten­ant in terms of main­tain­ing the deco­rum of the hous­ing so­ci­ety and to abide by its rules. It can also spell out the re­spon­si­bil­ity of the ten­ant to main­tain the prop­erty in good con­di­tion and that she/he will be held re­spon­si­ble for any dam­ages be­yond nor­mal wear and tear. Nor­mally, the land­lord is re­spon­si­ble for the maintenance of su­per struc­ture and the ten­ant for the day to day. It spells out the prop­erty tax. It is the owner’s re­spon­si­bil­ity to make com­plete pay­ment of his prop­erty tax on time. How­ever, in case the lease deed ex­e­cuted be­tween you and the lessor con­tains a term that the prop­erty tax is to be paid by you for the du­ra­tion of the lease, then it will be your re­spon­si­bil­ity to make timely pay­ment of prop­erty tax. in­spec­tion rights of the land­lord. It also states whether the land­lord is re­quired to give ei­ther a ver­bal or a writ­ten no­tice be­fore en­ter­ing the house or whether they are free to drop in at any time, unan­nounced. If they are re­quired to no­tify the ten­ant ahead of time, how ad­vance should the no­tice be? Ap­par­ently, many leases re­serve the right of the land­lord to en­ter the house at will.

It is im­por­tant to get the rental agree­ment reg­is­tered since it is ad­mis­si­ble in court. This helps in case any sit­u­a­tion arises in fu­ture which leads to lit­i­ga­tion. Also, to re­duce the chances of fu­ture dis­agree­ment with the ten- trar’s of­fice. Due to other dis­putes among us, I wish to va­cate the prop­erty soon. Can I va­cate the prop­erty?

— Amit Garg A lease of one year or longer du­ra­tion, such as in your case, is re­quired to be com­pul­so­rily reg­is­tered. If not duly stamped and reg­is­tered, such a lease will amount to month-to-month ten­ancy. Cur­rently, yours is a case of month-to-month ten­ancy, where both par­ties have the right to ter­mi­nate such an ar­range­ment any time. How­ever, reg­is­tra­tion of the lease deed would have ant and to hold the ten­ant re­spon­si­ble for any dam­ages they may have caused, it is ideal to record the dam­ages to the prop­erty in de­tail and also keep photo or video ev­i­dence for fu­ture ref­er­ence pro­tected the rights of both par­ties.

I am plan­ning to pur­chase an un­der-con­struc­tion flat in a res­i­den­tial project from the orig­i­nal al­lot­tee of the flat. What is the stamp duty payable?

- R Sid­dharth

No stamp duty is payable on a mere trans­fer of an al­lot­ment of the flat by the present al­lot­tee of the flat in your favour.

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