Suppose you are a non-resident of India (NRI) working in the Gulf for the last few years. And you decide to buy a house or residential building in your domestic country and wish to rent it out. In such a case, you may be worried about losing your property because of the old rent control laws.
Well, if the property comes under the tenancy law, it would take years to get back vacant possession of the property, looking at the long-drawn litigation that would be associated.
Read More: White House Nominates Indian-American Civil Rights Attorney As Federal Judge
Hence, you should not rent out property based on tenancy, but it should be given on an 11-month leave and license basis, while you can renew the license at the expiry of each 11-month if you wish. The agreement will have to be registered each time renewed, but it is worth going through this hassle to preserve the ownership right in your property.
With the introduction of the new tenancy law, rental-related agreements would have to submit to the rent authority. The landlord cannot evict the tenant during the contract period, but after that, the tenant would be required to vacate; if the tenant doesn’t go by so, the landlord would be entitled to take legal actions based on a formula the government. However, you must opt for a leave and license agreement with the licensee.