Our family has a commercial property in Bangalore, located in a bustling business hub. My grandfather built it back in 1970, and since then, the shops in our building have been leased out. However, the current tenants are paying significantly less than the market rate for the area. When we try to raise the rent, they threaten to take us to court, citing their long tenancy as grounds for keeping the rent low. They claim this will be a lengthy process, taking years to resolve. The problem is compounded by the fact that many of these tenants don’t have any formal lease agreements, or their agreements are long expired. How can we navigate this situation and achieve a fair rental income for our property?
Best Answer
Under Indian law, while long tenancy can be a factor in rent determination, it doesn’t automatically entitle tenants to low rents indefinitely. You can pursue legal options to renegotiate the rent based on current market rates, even without formal lease agreements. Seeking legal advice from a property lawyer in Bangalore will help you navigate the specific legal complexities of your situation and determine the best course of action.
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