rejoinder in charging rent for shops
KETAN J SHAH
(Querist) 24 February 2013
This query is : Resolved
Dear Sir,
As per the thread posted by Mr Vaibhav Vida the query was on shops i.e commercial establishments.
In one case a Bank has been given a 4700 sq.ft space on rent with a lease agreement of 75 years .This lease agreement is renewable every 25 years.Initially bank was paying 0.75 ps per sq.ft.After the first renewal the Rent was increased to RS 15/- per sq.ft with 20% increase every 5 years . Today the prevailing rent paid by this bank is Rs 31/- per sq.ft which is way below the market rate and over and above the maintenance chgs , common electric chgs, lift maintenance chgs ,are paid by the landlord from the rent causing him to loose a maximum part of his earning from the rent.
Q 1 CAN THE LANDLORD ASK THE BANK TO INCREASE THE RENT TO PREVAILING MARKET RATE ( the next renewal is due in APRIL 2014 AND THE SECOND PHASE OF 25 YEARS LEASE AGREEMENT ENDS IN 2018 )
PLEASE GIVE YOUR VALUABLE OPINION
THANKS
prabhakar singh
(Expert) 24 February 2013
1.Yes!The land lord can ask if the terms already agreed permits him to do so.Some time persuasion also prevails.
Devajyoti Barman
(Expert) 24 February 2013
If here is provision for increase if rent in the lease deed itself, then the landlord can ask for increased of rent.
Else he will have to file case for fixation of fair rent.
