Apni Law Staff asked 6 months ago
A tenant in my shop has only given 2 weeks’ notice before leaving, instead of the agreed 1 month. They also haven’t paid their last month’s rent/electricity bill. They’ve handed over the keys, but I’m left with unpaid bills. I’ve asked them to sign a letter acknowledging this, but they refuse and demand their full deposit back, even after deducting only 2 weeks’ worth of costs. Should I hold onto their deposit until they sign, or pay them what I think is fair and risk being sued? How easy is it for them to win a legal case in this situation?
Best Answer
Apni Law Staff answered 6 months ago
Indian law allows you to deduct unpaid rent and utilities from the deposit. However, you should only deduct for the period the tenant stayed beyond the agreed notice period (2 weeks in this case). You can hold onto the deposit until they sign an acknowledgment, but it’s advisable to seek legal advice to avoid potential lawsuits. A tenant’s success in a legal case depends on the specific terms of the lease agreement and evidence presented.
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