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Old 9th May 2012, 14:22   #16
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Question Leasing out Parking Space - Do's and Dont's

Our Society recently alloted the open car parkings to the resident members and would be charging Rs 100/- on monthly basis. Since I wont be needing the car parking space for another year or so was thinking of leasing it to an old gentleman in my building who has two cars but parking space for one. I would be needing to submit a letter to the society about the NOC for the car parking by the gentlemen & in return the gentleman would pay me a paltry amount as rent every month. What precautions should I be taking before I issue the NOC? Should I be entering into some agreement to be on the safer side and if so what legalities to be followed. Does someone have any std car parking lease agreement format which I can use.

What are the Do's and dont's I need to follow before the gentleman can start parking his car. Will I be liable to any damage that can happen to the parked car since the parking is alloted in my name. BHPians kindly advise.

Mods - Searched for similar threads but could not find any. if exists kindly move to the appropriate discussion.
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Old 9th May 2012, 14:25   #17
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Cool Re: Car Parking on lease - Do's and Dont's

Hi ghodlur,

Here is a thread on this topic:

http://www.team-bhp.com/forum/shifti...-car-park.html


Cheers!
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Old 9th May 2012, 14:36   #18
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Red face Re: Car Parking on lease - Do's and Dont's

Thanks Irish,

But the thread does not talk about anything else other than the rental rates. Surely there must be more than that.

What precautions do I need to bring to the notice of the leasee? Has any BHPian leased thie car parking space? What was the experience. Kindly share.
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Old 9th May 2012, 14:47   #19
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Default Re: Car Parking on lease - Do's and Dont's

Ask your CA to draw up a 11month lease agreement. I don't know about the legality of leasing out something that doesn't belong to you but to the society. Only your CA / lawyer will be able to advice you regarding that.

EDIT: moment you giving in writing that you do not need a space, the society can take the space away and allot it to someone else and there's nothing you can do about it.

My suggestion, buy a scrap car and park it. DO NOT let go of the space even for a paltry rent or as an act of good faith to the old gentleman.

I recently purchased a garage in my building for as much as a flat would have cost in the bombay suburbs. So you know, parking space is a premium!

Last edited by Tejas@perioimpl : 9th May 2012 at 14:52. Reason: see edit
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Old 9th May 2012, 14:50   #20
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Default Re: Renting out a car park

Quote:
Originally Posted by swageo View Post
I am planing to rent a covered car parking in an apartment near sarjapur road, Bangalore. What could a reasonable rate ?.
Quote:
Originally Posted by mayankjha1806 View Post
Have you rented the apartment?, or you are holding the apartment and renting the car park only? In this area the going rate is anywhere between 800-1500 per month, this depends on the apartment complex as well.
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Originally Posted by swageo View Post
Yes, got the apt but need additional parking. I found on guy with empty slot, but he is asking 2k.. which is on higher side.. This is in Kasavanahally main road. SJR Verity or HM Symphony. I too was expecting around 800 - 1000 range.
My apartment charges Rs.1,500 per month for extra parking or Rs.75 per day. We have few spare lots which are given for rent by association. This is on Haralur road just off Sarjapur road.
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Old 9th May 2012, 14:56   #21
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Default Re: Car Parking on lease - Do's and Dont's

I don't know what was the outcome but I remember there was a judgement by Mumbai High Court quite a few years ago about leasing out car parking lots - parking space isn't as such counted as property so you can't lease it out (or something on the lines).

I remember a lot of builders in Pune changed policies w.r.t parking space after that.

There were few members of our building who had a parking space but no cars; they simply let those who needed parking space park cars in theirs on goodwill.

Of course, goodwill especially when it comes to land in Mumbai might just be stupidity!
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Old 9th May 2012, 15:04   #22
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Default Re: Car Parking on lease - Do's and Dont's

Whatever you do, make sure that when you buy your own car or when you have guests having car, they would have parking space in your building. At times you may have guests staying over for a few days and hence parking for a few days would be required.

I'd recommend keeping the parking on your name (without any agreement) and inform the gentleman that he should vacate the parking whenever you require it. I'd also recommend not taking any money from him officially i.e. with receipts etc. You can keep paying the 1200 per annum required for keeping the parking space in your name. It's a very small amount to pay for peace of mind of having a parking space when you require it.
.
And yes, parking in Mumbai is definitely a premium. Even in the eastern suburbs, parking lots are being sold for around 4-5L each (one of our residents even park a Nano there!). Just imagine - a 2L car in a 3L parking space
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Old 9th May 2012, 15:09   #23
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Default Re: Car Parking on lease - Do's and Dont's

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Originally Posted by ghodlur View Post
Thanks Irish,

But the thread does not talk about anything else other than the rental rates. Surely there must be more than that.

What precautions do I need to bring to the notice of the leasee? Has any BHPian leased thie car parking space? What was the experience. Kindly share.
Please note some points that need to be incorporated in the "written" agreement.
  • The leasee (person who is using the space) will have no rights on the space other than tenancy rights.
  • The lease may be cancelled with a month's mutual notice.
  • Either of the cars (mention both his car's numbers) ONLY may be parked. (this will prevent sub-leasing).
  • The Slot should not be handed over in turn to any other member other than the leasor (owner) under any circumstance. The slot must be vacated and handed over to owner only.
  • Any repair charges incurred due to Damage to the parking slot or under the corresponding area would have to be bourne by the leasee (Subject to estimate from Soceity).
Get the above statement writen and signed in presence of the apartment Sciety manager and trustee / appropriate person. This will buy you peace of mind
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Old 9th May 2012, 15:18   #24
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Default Re: Car Parking on lease - Do's and Dont's

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Originally Posted by kalpeshc View Post

And yes, parking in Mumbai is definitely a premium. Even in the eastern suburbs, parking lots are being sold for around 4-5L each (one of our residents even park a Nano there!). Just imagine - a 2L car in a 3L parking space
Only 4-5L? i could have got ten!

Buy it, buy it as an investment. Appreciates fastest. Within six months of buying my garage i've got offers of 25% more. So imagine.
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Old 9th May 2012, 15:20   #25
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Default Re: Car Parking on lease - Do's and Dont's

^ I completely agree, but at least in my building the sale of parking space is quite regulated and now there's none for sale. There are some smart guys who had got multiple when the sale had opened.
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Old 9th May 2012, 16:02   #26
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Default Re: Renting out a car park

In our apartment in @Hyderabad, the normal rate is 300 per month. No agreement as such. Rent can be directly transferred to the owner (society guys sometimes collect the if owner is not available). Have not seen paying extra for open air parking.
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Old 9th May 2012, 16:40   #27
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Default Re: Renting out a car park

i pay 500 per month for a covered car parking in the building i stay in Thane.
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Old 9th May 2012, 19:44   #28
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Default Re: Car Parking on lease - Do's and Dont's

It's costing you 100 bucks a month, and the gentleman in turn will pay you a paltry amount. Is the paperwork worth the hassle? Time is money, Ghodlur. I suggest you keep that parking space for yourself only. Or, until you use it, let the old gentleman use for free out of goodwill.
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Old 9th May 2012, 22:14   #29
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Default Re: Car Parking on lease - Do's and Dont's

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Originally Posted by GTO View Post
It's costing you 100 bucks a month, and the gentleman in turn will pay you a paltry amount. Is the paperwork worth the hassle? Time is money, Ghodlur. I suggest you keep that parking space for yourself only. Or, until you use it, let the old gentleman use for free out of goodwill.
I Agree to GTO - 1200/- per annum is not worth the time-money hassle.

If at all you decide to lease the space please DO NOT lease it without paperwork. Do NOT have a "mutual" / "verbal"/ "adjustment" / understanding etc. If the person changes color at a later date, trust me no one will support you. People would only say "why did you lease without a written agreement?"

I am ashamed and sorry to say this but "verbal" commitments hold no value in india in 99% of the cases.
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Old 10th May 2012, 04:12   #30
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Default Re: Leasing out Parking Space - Do's and Dont's

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Originally Posted by ghodlur View Post
...What are the Do's and dont's I need to follow before the gentleman can start parking his car. Will I be liable to any damage that can happen to the parked car since the parking is alloted in my name. BHPians kindly advise...
From your post, I could understand that the only reason you want to lease the space out is as a good-will gesture. But as many pointed out there are pros & cons. Paper work is NOT worth the hassle, so is the trouble if the gentleman decides NOT to hand you back the space when you need it.

So my suggestion is that you get the lease agreement if you want to rent out the space [yeah, for the same paltry sum]; but the catch is - the entire thing has to be done by the other guy. Which means he has to incorporate all the points you give and make the agreement based on it & also will have to bear the expenses of your verification too [by your advocate]. I know some efforts have to be done from your side but minimise the financial impact as you are NOT gaining anything substantial from the lease as well.

Some points to consider:

1. The lease period has to be 11 months and WILL need to be renewed on an yearly basis, with an increase in rent [some % of the rent amount]

2. You can terminate the lease agreement anytime with a notice period of 1 month max

3. You will NOT be liable for any damage [or stealing] caused when the vehicle is parked in the mentioned slot.

4. The slot HAS to be used only for the vehicle owned by the tenant.

5. At the time of cancellation, you will NOT be required to pay ANY amount to the tenant.

6. The contract will NOT be valid for anyone other than the gentleman; the contract will be void if the unstoppable happens [you know what I mean].

As mentioned by someone, I would NOT take anyone for granted and lease out a space without any document. I added point # 6 because the guy who you are dealing with could really be a gentleman, but we never know about his relatives [I am NOT even sure we should think in those lines, but why take a risk!].

Edit:: Also add the point that you will be making the payment to the society directly & NOT the tenant. I suggest the receipts be in your name.

Last edited by swiftnfurious : 10th May 2012 at 04:18.
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