How to rent your Mhada flat?

The Maharashtra Housing and Area Development Authority (Mhada) is the nodal agency that is responsible for property reconstruction, slum redevelopment and providing affordable housing in the state. Through its various boards present in Mumbai, Konkan, Pune, Nashik, Nagpur and Chhatrapati Sambhaji Nagar, Mhada sells affordable housing by hosting a transparent computerised lucky draw. In this article, we discuss how Mhada property owners can rent out their property. Read on.

Table of Contents

Can a Mhada flat owner rent his property?

Once the Mhada applicant is a successful lottery owner and has accepted the housing unit, he has to pay the balance money to the Mhada Board to take possession of his property. While a Mhada lottery flat owner cannot sell his flat for five years from the date of purchase, he can rent it out. So, an owner can either use the Mhada property for staying or can rent it out to someone else.

Mhada flat rent: Eligibility

The Mhada flat can be rented only by the owner or the original allottee and not the co-owner or any other blood relative of the allottee. Additionally, the property owner should be a domicile resident of Maharashtra.
No condition laid by Mhada should have been violated by the allottee who is going to rent the property. In case of violation, Mhada may take the unit back leaving the tenant in a lurch. This may also lead the tenant to file a criminal case against the property owner.

Points to remember while renting your Mhada property

The following mentioned steps should be followed to rent your Mhada Property.

Firstly, Mhada flat owners should get an NOC from Mhada before renting their property. For this, a fee ranging between Rs 2,000 and Rs 5,000, depending on which category the owner belongs to has to be paid to the Mhada Board.
The property owner cannot transfer ownership of his Mhada property to the tenant.
The rent that the property owner charges should be depending on the type of the property, the location, amenities available etc. Also, if the Mhada Board has laid some guidelines regarding setting rent, the property owner should comply with this.
The Mhada housing unit can be given on rent only for residential purposes. No commercial activity can be executed from the unit. In case the tenant runs a commercial establishment, the property owner or Mhada can ask him to vacate the property.

Documents required to register Mhada flat rental agreement

Address of proof of property owner
Address of proof of tenant
Income proof of tenant
Identity proof of tenant
Identity proof of property owner
Passport size photos of tenant and property owner
Two witnesses from each side

Steps to rent Mhada flats

The property owner and the tenant should sign a rental agreement (notary is not allowed) that is legally acknowledged. The rental agreement should include all the clauses that the tenant and landlord want so that in case of any dispute, this may help. This will include rent to be paid, security deposit, responsibility of the property owner and the tenant, rental property tenure.
The tenant should pay the rent on time. Failure to pay rent on time may lead to eviction.
The Mhada flat owner should inspect his property periodically.

Format of leave and license agreement

You can check the following to access the leave and license agreement.

https://efilingigr.maharashtra.gov.in/ereg/downloadstuff/LAndL.pdf

LEAVE AND LICENSE AGREEMENT Particulars Amount Paid GRN No. Date Deface No. Stamp Duty Rs. (Amount) /- (GRN) (Date) Registration Fee Rs. (Amount) /- (GRN) (Date) LEAVE AND LICENSE AGREEMENT This agreement is made and executed on (Date) at (City) Between, (Name) , Age:About Years,Occupation: , PAN: , UID: .

Residing at: HEREINAFTER called ‘the Licensor (which expression shall mean and include the Licensor above named as also his respective heirs, successors, assigns, executors and administrators) AND (Name) , Age: About Years, Occupation: ___ , PAN:_________, UID:________ . Residing at ________________________________________________________________

HEREINAFTER called ‘the Licensee’ (which expression shall mean and include only Licensee above named). WHEREAS the Licensor is absolutely seized and possessed of and or otherwise well and sufficiently entitled to all that constructed portion being unit described in Schedule hereunder written and are hereafter for the sake of brevity called or referred to as Licensed Premises and is/are desirous of giving the said premises on Leave and License basis under Section 24 of the Maharashtra Rent Control Act, 1999.

AND WHEREAS the Licensee herein is in need of temporary premises for his use has/have approached the Licensor with a request to allow the Licensee herein to use and occupy the said premises on Leave and License basis for a period of Months commencing from and ending on , on terms and subject to conditions hereafter appearing.

AND WHEREAS the Licensor have agreed to allow the Licensee herein to use and occupy the said Licensed premises for his aforesaid purposes only, on Leave and License basis for above mentioned period, on terms and subject to conditions hereafter appearing;

NOW THEREFORE IT IS HEREBY AGREED TO, DECLARED AND RECORDED BY AND BETWEEN THE PARTIES HERETO AS FOLLOWS:-

1) Period: That the Licensor hereby grants to the Licensee herein a revocable leave and license, to occupy the Licensed Premises, described in Schedule hereunder written without creating any tenancy rights or any other rights, title and interest in favour of the Licensee for a period of Months commencing from and ending on

2) Rent & Deposit: Note:The clause 2 will depend on your selection ∙ That the Licensee shall pay to the Licensor Rs. Per month towards the compensation and Rs. Interest free refundable deposit, for the use of the said licensed premises. The amount of monthly compensation shall be payable within first five days of the concerned month of Leave and License. OR ∙ That the Licensees shall pay to the Licensor the following amount per month towards the compensation for the use of the said licensed premises. a) Rs —————-per month for the first ——–months, b) Rs—————–per month for the next ——–months, c) Rs—————–per month for the next ——–months The amount of monthly compensation shall be payable within first five days of the concerned month of Leave and License. OR ∙ That the Licensees shall pay to the Licensor Rs————–per month towards the compensation and Rs————–interest free refundable deposit, for the use of the said licensed premises. The amount of monthly compensation shall be payable within first five days of the concerned month of Leave and License. OR ∙ That the Licensees shall pay to the Licensor Rs————–per month towards the compensation and Rs————–interest free nonrefundable deposit, for the use of the said licensed premises. The amount of monthly compensation shall be payable within first five days of the concerned month of Leave and License. OR ∙ That the Licensees shall pay to the Licensor the following amount per month towards the compensation for the use of the said licensed premises . a) Rs —————-per month for the first ——–months, b) Rs—————–per month for the next ——–months, c) Rs—————–per month for the next ——–months. The amount of monthly compensation shall be payable within first five days of the concerned month of Leave and License. Licensees shall also pay to the Licensor Rs————–interest free refundable deposit, for the use of the said licensed premises. OR ∙ That the Licensees shall pay to the Licensor the following amount per month towards the compensation for the use of the said licensed premises . a) Rs —————-per month for the first ——–months, b) Rs—————–per month for the next ——–months, c) Rs—————–per month for the next ——–months. The amount of monthly compensation shall be payable within first five days of the concerned month of Leave and License. Licensees shall also pay to the Licensor Rs————–interest free nonrefundable deposit, for the use of the said licensed premises.

3) Payment of Deposit: Note: The clause 3 will depend on your selection ∙ That the Licensee have paid / shall pay the above mentioned deposit/premium as mentioned above by Cash. Amount Rs.________ OR ∙ That the ———————- has/have paid / shall pay the above mentioned deposit/premium as mentioned above by Demand Draft No.———-, dated ——–, drawn from —————- Bank, ————- Branch. Amount Rs.————- OR ∙ That the ———————- has/have paid / shall pay the above mentioned deposit/premium as mentioned above by Cheque No. ———–, dated——–, drawn on the Licensee’s Banking Account with —————- Bank, ————- Branch. Amount Rs.————- OR ∙ That the ———————- has/have paid / shall pay the above mentioned deposit/premium as mentioned above by Transaction Reference No. ————-, dated———-, drawn on the Licensee’s Banking Account with ————— Bank, ———– Branch. Amount Rs.———–

4) Maintenance Charges: Note:The clause 4 will depend on your selection ∙ That the all outgoings including all rates, taxes, levies, assessment, maintenance charges, non occupancy charges, etc. in respect of the said premises shall be paid by the Licensor. OR ∙ That the Licensee/s herein shall bear and pay all the maintenance charges in respect of the said Licensed Premises, and other outgoings including all rates, taxes, levies, assessment, non occupancy charges, etc. in respect of the said premises shall be paid by the Licensor/s

5) Use: That the Licensed premises shall only be used by the Licensee for purpose. The Licensee shall maintain the said premises in its existing condition and damage, if any, caused to the said premises, the same shall be repaired by the Licensee at its own cost subject to normal wear and tear. The Licensee shall not do anything in the said premises which is or is likely to cause a nuisance to the other occupants of the said building or to the prejudice in any manner to The rights of Licensor in respect of said premises or shall not do any unlawful activities prohibited By State or Central Government.

6) Alteration: That the Licensee shall not make or permit to do any alteration or addition to the construction or arrangements (internal or external) to the Licensed premises without previous consent in writing from the Licensor.

7) No Tenancy: That the Licensee shall not claim any tenancy right and shall not have any right to transfer, assign, and sublet or grant any license or sub-license in respect of the Licensed Premises or any part thereof and also shall not mortgage or raise any loan against the said premises.

8) Inspection: That, the Licensor shall on reasonable notice given by the Licensor to the Licensee shall have a right of access either by himself or through authorized representative to enter, view and inspect the Licensed premises at reasonable intervals.

9) Cancellation: That, if the Licensee commits default in regular and punctual payments of monthly compensation as herein before mentioned or commit/s breach of any of the terms, covenants and conditions of this agreement or if any legislation prohibiting the Leave and License is imposed, the Licensor shall be entitled to revoke and / or cancel the License hereby granted, by giving notice in writing of one month and the Licensee too will have the right to vacate the said premises by giving a notice in writing of one month to the Licensor as mentioned earlier.

10) Possession: That the immediately at on the expiration or termination or cancellation of this agreement the Licensee shall vacate the said premises without delay with all his goods and belongings. In the event of the Licensee failing and / or neglecting to remove himself and / or his articles from the said premises on expiry or sooner determination of this Agreement, the Licensor shall be entitled to recover damages at the rate of double the daily amount of compensation per day and or alternatively the Licensor shall be entitled to remove the Licensee and his belongings from the Licensed premises, without recourse to the Court of Law. LEAVE AND LICENSE AGREEMENT

11) Registration: This Agreement is to be registered and the expenditure of Stamp duty and registration fees and incidental charges, if any, shall be borne by the Licensee. Schedule: (Being the correct description of Flat which is the subject matter of these presents) All that constructed portion being residential unit bearing___( Apartment/Flat No.) ____, Built-up (Area): ___________, situated on the Floor of a Building known as ______________ standing on the plot of land bearing ___________________________________________________ , of Village: , situated within the revenue limits of Tehsil and Dist and situated within the limits of Municipal Corporation. IN WITNESS WHEREOF the parties hereto have set and subscribed their respective signatures by way of putting thumb impression electronic signature hereto in the presence of witness, who are identifying the executants, on the day, month and year first above written.

Leave and License Agreement

Housing.com POV

Renting a Mhada flat is similar to renting other properties in Maharashtra. However, one needs an NOC from the MHADA Board before allowing a tenant to stay in the house. It’s recommended to contact Mhada helpline or a lawyer before renting your Mhada flat to know more about the rules and regulations.

Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com

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