Market trends indicate a decline in the demand for new possession, and its reeling effects can last even after the health crisis subsides. Hence, finances and the economy took a hit, and it is not viable to splurge on a lease renewal right now.
The pandemic changed the average person’s perception of space and property ownership.
We will observe how you can work out your rental agreement, lease duration, and break clauses within the Landlord and Tenant Act (1954).
Lease duration
If the two parties cannot reach a consensus about lease duration, the court can take over.
They determine it based on Section 33 of the Act. Generally, the tenure granted can be up to 15 years if they find reasonable circumstances.
The court observes the previous lease terms, including the holding period and the tenant’s business.
Then, they consider the sensitivity and protection of your livelihood and personal status while estimating the lease duration and balancing the landlord’s interest and rights.
Rent deferral and reduction
Landlords may consider deferring the rent on homes and apartments occupied by the tenant until the situation pacifiers.
You can negotiate the new lease agreement with your landlord and put off the payment for later or fulfill it partially.
Rent reduction is unfavorable for the landlord unless you agree to pay in full later when the situation improves. It is a viable option for tenants, but landlords may find the operational costs and limited cash flow unsustainable.
Deferral is a more balanced alternative to rent abatement.
However, the relief duration may differ if the lease involves commercial property as landlords consider the nature of business.
Break clauses
As we move ahead post-pandemic, it is best to include a break clause in your lease agreement.
It offers more flexibility in the contract, and the court reviews the new agreement terms and circumstances as directed by Section 35 of the 1954 Act.
In addition, you can consult a lawyer to include a break clause in the agreement as it helps with the uncertainty of the present situation.
Looking for third-party assistance
Third-party moneylenders offer interest-friendly schemes during and after the pandemic to support your financial condition.
You can consult lawyers and financial advisors to work out a plan that helps you secure the lease agreement against a lower price.
You may also find cash concessions and rebates that can help you with your case.
Call to Action The pandemic makes the entire lease processing different and challenging. However, you can help yourself with guidance from the experts. You can fill-up the form on our website to learn more about your options.
