Legal Procedure for Renting a House in India

Many of my Indian friends have their own property in India. It has become very difficult to rent your house there due to the Indian laws that favor the tenant, rather than the homeowner. There have been examples where the house tenants have refused to vacate the house and have claimed the right to ownership. This is a very common problem in India. I myself own one house in India and have managed to rent it without any problemsin the last ten years by following the legal procedure of live and license. I am going to cover this legal procedure so you can rent your house without any problems in India.

The first step is to make sure that the property you would like to give on rent is clearly on your name and the legal documents to that effect are in your possession. The next step is to start looking for the tenant for your property through the advertisement in the news papers or through property agents who can find tenants for you. Once the tenant approaches you, show him the complete property and specify the exact rent you would like to have. There are many options for giving the property on rent but the most appropriate option is to give your property on rent under live and license for the period of eleven months. This procedure has been approved by Indian laws and the owners would have minimum problems in giving their property on rent. The legal agreement is to be made for such live and license procedure on non judicial stamp paper valuing to Rs.100. Such stamp papers can be purchased from any stamp vendors available outside the court building. You will need to give your full name and the detailed address while purchasing such stamp paper. The stamp paper must be bought in the name of the property owner and not in the name of the tenant. After this, the standard legal draft is to get typed on this stamp paper. Such standard draft can be easily available from any practicing lawyer or from any licensed notaries.

The agreement specifies the exact amount of rent along with the list of the items available in the house like ceiling fans, refrigerator, gas stove, etc. It also indicates the detailed terms and conditions as to who will bear all the utility bills, house tax, and other government taxes. This agreement clearly states that it is made for the period of eleven months and can be renewed after the said period. Once such agreement is typed on the stamp paper, both the parties as to the owner and the tenant would have to sign at the bottom of the deed of the agreement in presence of the district magistrate or the Notary. Once this is done, the deed becomes legally valid and effective. The agreement also specifies that both owner and the tenant can terminate this agreement with one month notice on either side. At the end of eleven months, the owner/tenant may renew or terminate the legal deed as per their wish. Such eleven months agreement offers equal flexibility to both the parties to end the agreement at the end of the period of eleven months. As equal powers are given to both tenant and the owner in such deed, it is treated as valid and acceptable in all courts of law in India. The house owner must show this income of rent in his annual income tax return every year in order to avoid tax problems at a later date.

It is really very easy and convenient to give your property on rent under this procedure and is also valid legally in all the courts of India. I have given my house on rent under such agreement since last more than ten years without any problems. I would strongly suggest adopting this eleven months live and license procedure while giving the house on rent in India. If any of my readers have any doubts on this, they are free to contact me.