123 abcdef (Service) 22 August 2013

Lease renewal rules or limitation

I would like to know about lease agreement rules or any limitation for lease renewal. I have done 11 months lease agreement with my tenant and we have done 2 renewals for next 2 years(11 months each agreement) and after that taken 1 month gap and proceeded with another new agreement for next 11 months. This year we would like to continue lease and I have suggested to put another relative names of tenants in the new lease agreement.

Please let us know if any relative name will work for new agreement.

Also I have query if there are any laws for maximum renewals to same tenant and if there is any legal risk to landloard in terms from tenant in future.

Regards

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4 Replies

Advocate Vishnu (Advocate) 22 August 2013

There is no legal bar on the number of times you can renew your rental agreement. As long as the period is 11 months, you need not register it. You may add any new person / persons to a new rental agreement.

Manish Kumar Gupta (Deputy Legal Manager) 24 August 2013

Dear Sir,

Yes, it may help you to change the name of the tenant to avoid proving tenancy for a continous period (12 or 20 Yrs).

However, One thing you must know that the tenant never become owner of the property. Tenant is always a tenant. There are two methods in evicting the tenant. under the Rent control law and other is under the transfer of proeperty act. Basing on the quantum of rent jurisdiction of the case will be seen. If the rental amount is not comes under the jurisdiction of rent control act, then you must issue notice under sec.106 of transfer of property act to the tenant by demanding him to vacate your property with in one month. If the tenant did not vacate with in the statutory period you are entitled to file a suit for eviction against the tenant. If the lease is a oral lease and then it will become month to month tenancy and the act not provided any defence to the tenant and you will get eviction orders with out any hurdle. You can also claim damages for use and occupation by the tenant after the cause of action arosued for filing of the suit

Under the rent control act also you can file a eviction petition under the provisions of the act.

2BHelpfull (Other) 24 August 2013

leasee doesnot become ur tenant if the lease agreement is property executed n registered .

he is just lessee n contract end after the lease period is over.

no landlord n tenant relation is there .

only leasor n lessee relation is there n its comes to an end when the lease agreement comes to an end.

lease agreement must be registered.

no bar on the number of times u can renew your lease agreement.

S Jadhav 98336 98330 (Jadhav & Associates) 25 August 2013

First decide, whether you have given the property on lease or on a leave and licence basis.

If you are concerned about the tenant/occupier taking control or ownership of your property then, first, please register and pay the stamp duty on the lease deed or L & L agreement to ensure that the document will be a valid evidence in the Court in case the matter goes to Court.

Another option is to do Leave and Licence which provide limited rights to the occupier as compared to a lease agreement.

There is no limit on the number of times you may renew the agreement.

S Jadhav