00:00Hello everyone, this is Advocate Nidhi Singh, founder of NRI Legal Services, wishing you a sparkling, bright, fresh and revitalizing
00:12start of the year 2022.
00:16These days, the global situation being what it is, we are again in the midst of a third wave of
00:23the pandemic and there is hardly any area across the globe which is not touched.
00:30And likewise, people are not able to travel, people are not able to come back to India and we as
00:36an organization representing the Indian diaspora overseas are getting a spate of inquiries where people are really, really helpless.
00:45Their properties are here, they are languishing, they are not able to come and look after them, they are not
00:50able to come and renew the tenant leases or if there is an encroachment, they are not able to pursue
00:57their litigations.
00:57So, it is very, very chaotic and I thought I should try and address some of these issues that I
01:04can, which I will be taking up in a series.
01:07But today, we are going to be talking about those people who are writing to us about their tenanted property,
01:16their lease deeds, their rent agreements, which need to be renewed or, you know, they need to actually rent out
01:23their properties or take control of those properties.
01:25So, I would want to give some very quick tips in the midst of this pandemic and without really traveling,
01:32the good news is that you can actually proactively manage all of these properties from where you are.
01:39And here is how you need to do it.
01:42If you are planning to lease out your property, the landlords, that is, if you are a landlord wanting to
01:48lease out your property, here are the few things that you must keep in mind.
01:54Number one, you should identify your tenant through a trustworthy source.
02:00Common sense tips are, is he a well-employed, is he a family man, or is his history or his
02:11persona or the way he is, is pretty amiable and he seems like a decent person.
02:19That's a very big tick.
02:21Try and find out more about your tenant.
02:23And once you identify your tenant, either it's through your power of attorney, a close friend, or you yourself can
02:29online have a video chat or a meet with him.
02:31The world operates online now.
02:32I don't think that should be a problem at all.
02:34And once you do it, you should have an oral chat about the rent.
02:38How is he going to deposit?
02:40What is the security deposit?
02:42Very clearly, you should have a very clear understanding verbally.
02:45And then the same should be enshrined in a watertight rent lease or a watertight lease deed or a rent
02:54agreement drawn up by a proper lawyer.
02:57There are enough of these boilerplate agreements.
03:00Then these agents, they keep with themselves.
03:05I would ideally do not want you to use them.
03:07Always try and involve a lawyer of some sorts who would draw them up custom made to your requirements.
03:14So have all the understanding in a rent agreement in which everything is completely, clearly outlined.
03:26So why the rent deed is very important.
03:28The most important things that you must know in a rent deed are the mode of payment, how much is
03:36the rent, how much is the security deposit, the term of that lease deed,
03:40what are the do's and the don'ts, and what is the exit clause once the lease comes to an end.
03:47All of this should be clearly, clearly mentioned in the lease deed, which is the governing document between you and
03:54your tenant here in India.
03:55So be very careful when you do that.
03:59Once all of that is done, two things I would highly recommend all people who are looking to lease their
04:06properties in India.
04:07The first is try and keep the utilities bills, the water bill, the electricity bill in your name.
04:15A lot of times when the tenancy has been for a longer duration, somehow the electricity bills and the other
04:24water bills and all,
04:26they somehow come on the tenant's name sometimes.
04:28That is not at all advised and it should be avoided.
04:33Always the utility.
04:35This shows clear possession and ownership in your name.
04:38So utilities, number one, should be in your name.
04:41And number two, which is very important also, and I always advise clients who have to rent out their residential
04:49properties,
04:50you should have some portion of the property with you.
04:55It could be just a garage, it could be a servant quarter, where you have access.
05:00So when you are giving out a whole house, try a portion of one room, a small little portion of
05:06that house that you lock up is in your possession.
05:09That is for you to get access to the property.
05:12In the case, the tenant goes rogue.
05:16You should, and that will always help you.
05:19In India, we do get a lot of cases like that.
05:23Unlike the West, where things are pretty streamlined,
05:25we do still have problems and a lot of disputes between the landlords and tenants keep arising
05:34once, you know, the lease date is formalized and the tenant has actually taken possession.
05:41The other thing I would like to advise landlords are that do watch your tenant.
05:47If he is giving everything on time, his attitude towards the property,
05:52is he paying the rent on time?
05:54Do not ignore the early signs.
05:57The early signs is the behavior of the tenant.
06:00And if you feel that the tenant is not behaving properly,
06:03you should take remedial actions immediately.
06:05And not wait for it, not wait for the situation to go out of hand,
06:09which it often does, and then you have no other resort but to go to the court.
06:14These are all tips to avoid going with a dispute to the court.
06:18But in any case, in case there is a situation where you have to go to the court,
06:23please do not be scared of it.
06:25It is absolutely formal.
06:27The rent laws are very well defined in India.
06:30And you can actually fight the case and get your property completely,
06:37you know, evicted by the tenants also, in case there is.
06:42But do take these basic common sense tips and keep them in mind
06:45when you are leasing out the property.
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