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Sub-letting : Can a Tenant sub-let a Rented Property / Make a Leave and Licence Agreement?

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Sub-letting : Can a Tenant sub-let a Rented Property / Make a Leave and Licence Agreement?

Last updated: May 9 2017
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  • Sub-letting : Can a Tenant sub-let a Rented Property / Make a Leave and Licence Agreement?

    Can a tenant sub-let the rented property by making a leave and licence agreement, without written consent of the landlord? If yes, what are the preventive measures for future disputes? Can anyone guide me?
    Last edited May 9 2017, 11:46 AM.
  • #2

    #2

    Re : Sub-letting : Can a Tenant sub-let a Rented Property / Make a Leave and Licence Agreement?

    Originally posted by gopal554 View Post
    Can a tenant sub-let the rented property by making a leave and licence agreement, without written consent of the landlord? If yes, what are the preventive measures for future disputes? Can anyone guide me?
    NO - A tenant cannot make the leave and licence agreement. Tenant is NOT the owner of the Flat.
    Last edited May 9 2017, 11:47 AM.

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    • #3

      #3

      Re : Sub-letting : Can a Tenant sub-let a Rented Property / Make a Leave and Licence Agreement?

      This is interesting. Originally, the question was asked in 2008 and you got a like as well by answering in 2017. I like your helping attitude man !

      BTW, just for information, in case someone doesn't know that "Sub-Letting" a property is illegal in India. You may face criminal proceedings if land-lord files a FIR. Tenant cannot sub-let, irrespective of, with or without consent of land-lord. Only the owner or a person holding the power of attorney can let out the property.

      But as you know in India every law has grey areas and ambiguity. People lease and then sub-lease !

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      • #4

        #4

        Re : Sub-letting : Can a Tenant sub-let a Rented Property / Make a Leave and Licence Agreement?

        Just to add for other members who would like to know on the topic:

        The judiciary system of India has debated hugely to decide whether property subletting is legal or not. The Supreme Court of India passed the judgement that a tenant can be evicted from the property if s/he sublets the same property that s/he has taken on rent without the consent of the landlord. For commercial purposes the tenant can bring in new partners to his/her business but cannot sublet the property without the permission of the owner.


        Subletting can become a source of money laundering and illegal transactions if the dealing is not done through proper financial institutions. The taxation, electricity bills and other related issues can become really complicated if the renting process is not done properly. For a tenant, it is important that s/he understands the legal implications of subletting and tread that line cautiously.
        Talk TRUE; Talk IREF

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        • #5

          #5

          Re : Sub-letting : Can a Tenant sub-let a Rented Property / Make a Leave and Licence Agreement?

          Most Property owners ( especially residential ) don't allow subletting . In some Commercial cases, it is being allowed by the owner, if he is getting an additional fair share of the sub leased rental .

          Generally speaking, sub leasing is a no-no .
          Please read IREF rules | FAQ's

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          • #6

            #6

            Re : Sub-letting : Can a Tenant sub-let a Rented Property / Make a Leave and Licence Agreement?

            Originally posted by MANOJa View Post
            Most Property owners ( especially residential ) don't allow subletting . In some Commercial cases, it is being allowed by the owner, if he is getting an additional fair share of the sub leased rental .

            Generally speaking, sub leasing is a no-no .
            Well, one of the active trend which I have seen in Mumbai, Pune, Bangalore, Hyderabad and Chennai is that the NRIs lease their apartments to "Service Apt. Companies" for long term (say 3 to 5 years etc...). This gives the flat owner a peace of mind and a known fixed lumpsum rental income. They save themselves from lot of hassle to find new tenants, deposit taking/giving, whitewashing, fitting & fixture repairing etc...

            The "Service Apt. Companies" usually have a good tie up with corporate companies (basically HR and Admin dept.). Through these channel they further sub-lease those properties to corporates. This works out well where HR saves lot of bucks for the company when an expat is coming down for few months to work from India. The startup are using this channel as well for providing accommodation to new joinees. This is a cost saving channel for them.

            Airbnb is another trend I have seen where "Service Apt. Companies" are using this channel to post ads and sub-lease the properties.

            Irrespective of whether it is legal or illegal, this trend is very much active in present time. Till the time all parties involved are happy all is well.

            Disclaimer : I am not suggesting or promoting to follow the illegal trend. I have written from what I have observed.

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            • #7

              #7

              Re : Sub-letting : Can a Tenant sub-let a Rented Property / Make a Leave and Licence Agreement?

              Originally posted by montysaini View Post

              Well, one of the active trend which I have seen in Mumbai, Pune, Bangalore, Hyderabad and Chennai is that the NRIs lease their apartments to "Service Apt. Companies" for long term (say 3 to 5 years etc...). This gives the flat owner a peace of mind and a known fixed lumpsum rental income. They save themselves from lot of hassle to find new tenants, deposit taking/giving, whitewashing, fitting & fixture repairing etc...

              The "Service Apt. Companies" usually have a good tie up with corporate companies (basically HR and Admin dept.). Through these channel they further sub-lease those properties to corporates. This works out well where HR saves lot of bucks for the company when an expat is coming down for few months to work from India. The startup are using this channel as well for providing accommodation to new joinees. This is a cost saving channel for them.

              Airbnb is another trend I have seen where "Service Apt. Companies" are using this channel to post ads and sub-lease the properties.

              Irrespective of whether it is legal or illegal, this trend is very much active in present time. Till the time all parties involved are happy all is well.

              Disclaimer : I am not suggesting or promoting to follow the illegal trend. I have written from what I have observed.
              Yes, what u say is true in some cases, i was talking more from an Individual's point of view . Individual owners leasing to Individuals & agreeing to subletting is normally a no-no .

              I have no sub letting clause in all my Properties - Delhi, Navi Mumbai, Gurgaon, Pune, Shimla etc..
              Please read IREF rules | FAQ's

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              • #8

                #8

                Re : Sub-letting : Can a Tenant sub-let a Rented Property / Make a Leave and Licence Agreement?

                Originally posted by MANOJa View Post

                Yes, what u say is true in some cases, i was talking more from an Individual's point of view . Individual owners leasing to Individuals & agreeing to subletting is normally a no-no .

                I have no sub letting clause in all my Properties - Delhi, Navi Mumbai, Gurgaon, Pune, Shimla etc..
                Perfectly make sense. Thanks !

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                • #9

                  #9

                  Re : Sub-letting : Can a Tenant sub-let a Rented Property / Make a Leave and Licence Agreement?

                  Can you sub lease if a company has taken a land for 99 years? A company in Lonavala has leases a land for 99 plus 99 and is selling ( sub leasing ) studio home for 99 plus 99 years and offer to take back on lease for 5 years to run it as a resort and pay rent plus free stay.


                  Thanks in advance

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                  • #10

                    #10

                    Re : Sub-letting : Can a Tenant sub-let a Rented Property / Make a Leave and Licence Agreement?

                    Originally posted by Frustated View Post
                    Can you sub lease if a company has taken a land for 99 years? A company in Lonavala has leases a land for 99 plus 99 and is selling ( sub leasing ) studio home for 99 plus 99 years and offer to take back on lease for 5 years to run it as a resort and pay rent plus free stay.


                    Thanks in advance
                    The sub-leasing clauses r pretty complex and vary from state to state and also whether the land in question is agricultural land or otherwise .

                    So, consult an expert, there could be legal/taxation issues involved .
                    Please read IREF rules | FAQ's

                    Comment

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