Renting out

Ashok (Querist) 10 September 2016 This query is : Resolved
Hi Team,

I have a small vacant property with in the boundaries of Chennai. The vacant land has a 12X12 infrastructure (watchman shed). A family of 3children with wife and husband approached us to stay there for no rent and take care of gardening in the property. They are from a remote village who wants to give better education to their children and as part of giving back to society I agreed and let them stay there. I got an electric connection for them to stay comfortable and also to water the plants that they maintain. I agreed to share Rs. 300 to 500 for the consumption charges based on the climatic conditions to reduce their burden.

So far there is no issues. But I am going to be away from the country for some time and wanted to document the scenario. Moreover the occupant have daughters who have attained their puberty, I wanted to provide them more standard sanitation facilities with in the premises instead they using the public facility provided by corporation.

I need your support to prepare a right legal contract with them in order to avoid future complications if any raise because human behavior would change any day and my good intentions may lead me to complications.

So, Please advice if I have to make my contributions towards electricity bill as maintenance compensation and make the occupants as employee (Watchman).

Or should I have to collect a small formality rent and make them formal tenets.

Please advice to draft a contract note and what value of stamp paper is required to register the contract.

Regards
Ashok

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Raj Kumar Makkad (Expert) 10 September 2016
It shall be better to execute a formal rent-deed so as to avoid any future complications. You may contain very negligible amount in rent which is not required to be registered if its term is upto 11 months but shall be required to be registered if it exceeds over that period.