Important Information On Renting Property

There are two types of tenancy agreements in India. One is the Lease agreement which is governed by the Rent control laws and the Leave and License Agreement which is not. India has tenant-friendly laws and the Lease Agreement is quite restrictive in that sense. Landlords cannot charge more than a certain percentage of the historical cost of construction and the market price of the land (not current) and during the period of the lease, the rights of ownership are transferred. Hence Landlords prefer to go with the Leave and License Agreement, which are drawn up for periods up to eleven months. This is to avoid coming under the rule of Rent Control Act, which kicks in from a twelve month lease period.

The terms of the Leave and License Agreement are entirely drafted and agreed upon by the landlord and the tenant. There is also a security deposit of three months rent, refundable at the end of the contract, subject to any deductions towards liabilities if any.

With these basics in place in the rental property market basically everywhere in India, the market is burgeoning for rentals as people move between the major and tier 2 cities in India. Expatriates are also an important section of house hunters. An expatriate is a person temporarily or in some cases permanently residing as an immigrant on account of work reasons, in a country other than that of their native origin. They are found usually in the metros or sometimes in tier 2 cities. Nowadays, it is left to the expat to find the accommodation himself/herself. Corporates though, still work with estate agents to find accommodation for their expat visitors.

An international school is one of the major concerns for an expat coming to stay with his family. Knowledge of the lifestyle, the best area of the city to live, healthcare, safety, commuting are all important factors that the expat has to familiarize himself with.

Furnished or unfurnished accommodation is available. Provided furnished apartments or villas (though they are in short supply with high demand) is not a problem with landlords in India, it doesn’t cost all that much, and you can specify your taste too.

Every city has certain expatriate districts that cater to the residential and life quality of the expatriates. The earlier established ones are close to the business district, but as the expatriate population increases, more districts are established further into the suburbs. But these too are considered upmarket compared to the rest of the suburbs.

An important tip for expatriates

It is best to use the services of expat expert, who can greatly simplify the process for a tenant and conduct the due diligence that is required from locating the proper residence and checking its legal status, to drafting the terms of the agreement with the landlord, getting it registered, checking on the availability of schools, colleges etc. nearby, helping in the shipping of goods, unloading etc. Not merely estate agents, they have knowledge and competency in all these related areas, which makes the transition for the expat smooth and tension free.