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Old 10th May 2012, 04:52   #31
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Default Re: Leasing out Parking Space - Do's and Dont's

Ghodlur - a few points from my side:

1. If I am correct - that parking space is not your 'property' per se. It belongs to the housing society which is allowing you to use it for a monthly fee of Rs 100. Please corect me if I am wrong.

2. Did you have any paperwork to come in agreement with the society for use of that lot ? is it just an entry in a logbook or a proper lease agreement?

3. If its a lease agreement, does any clause explicitly prohibit subleasing?

4. If its a 'journal entry' or there is no express clause restricting subleasing - I guess you can sublease that area.

5. If you decide to allow your neighbor use of that area to park one of his cars, you MUST have a lease agreement to be on the safe side for continued access to that area.

6. Make all points clear in the lease - what shall be the notice period, who can provide the notice,can his guests park their car on that area, can you or your guests park if his car is not there?

7. Get the lease formally done - and even if the rent is Rs 1 per month, collect it with receipt every month.

At the end of it - I really suggest not to lease out the space - not worth the hassle.
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Old 10th May 2012, 07:23   #32
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Default Re: Car Parking on lease - Do's and Dont's

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Originally Posted by scopriobharath View Post
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.
Good point. At the same time, if there is no legal/formal agreement involved, 'correcting' the situation in case of trouble is also straightforward. Since your name would be mentioned in the society registers, you can always say that somebody is illegally parking in your space and in the worst case get the offending vehicle towed.

But again, its not worth all this hassle. Peace of mind is higher priority (at least for me). So I would suggest - let the space be vacant and just keep the society informed informally that the space would be vacant for a few days.
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Old 10th May 2012, 07:35   #33
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@GTO,Swiftnfurious,blackasta

Thanks a ton guys for the insights. The car parking has been alloted by the society in my name through an allotment letter. Although the letter does not say the allotment is for a specific period of time, I assume that it will be for lifetime.

As everybody said its not the worth the paperwork and the space can be leased to the gentleman out of goodwill. However the gentleman insisted on paying the rent so that my parking space does not become a public parking in future in the absence of any directive to the society in favour of the gentleman.

I was scouring for a readymade format for the agreement, but could not come across any. Hence will be preparing my own lease agreement with the inclusion of all the inputs by BHPians.
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Old 10th May 2012, 08:01   #34
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Default Re: Leasing out Parking Space - Do's and Dont's

Ghodlur,

Rs 1200 per annum is nothing. Ask that gentleman to use the parking free of cost, till the time you have to use it.

It will never become public parking as you have the allotment letter from your society.

Once you have an agreement, your tenant will become as powerful as you, there will be no room for good will should the need arise.

Imagine, a day may come and you had to say any thing to this gentleman, he may or may not be there, and should you get in to verbal argument, and other person may say. "Sau Rupai ke liye kitna naatak karta hai".
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Old 10th May 2012, 10:29   #35
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Default Re: Leasing out Parking Space - Do's and Dont's

Two choices:
1. Let the gentleman use the slot on goodwill basis. Payment need not be always money - it can be in kind. Since you have the society allocation letter, chances are it will not become public parking.
Also even if the slot is left vacant, and used as visitor parking in your absence, what is the society's take on ensuring availability once you are back?

2. Should you choose to keep it vacant, put a chain around the entrance to the slot to prevent people from parking there.

IMO, this does not warrant any paperwork and needlessly complicate things.

In my society, we are ok with tacit arrangement between a non-residing owner and another resident on utilizing such slots. Nobody else parks in those slots. The only thing we enforce is that the person using the slot should not park elsewhere and deny someone else parking.
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Old 3rd July 2012, 19:23   #36
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I pay Rs 3000 pm for a covered car park. I live on Sarjapur road in Bangalore - This ain't even town!!

My other option is to use the open visitor car park. Only slight issue is that the society charges Rs 200/- per night for using the visitor car park!!

Square feet to square feel - my house rent feels very reasonable compared to my second car park
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Old 3rd July 2012, 19:38   #37
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Default Re: Leasing out Parking Space - Do's and Dont's

I rent a parking slot for my wife's car in my Bangalore apartment. The lessor has no agreement or paperwork with me, just an understanding. He bought the parking for 3 L and he gets 3k a month. Works out to tax free dividend of 12% for him. Not bad.
He's pleased, I'm guessing, and never asked for paperwork or to increase the rent by 5% a year or whatever (been around 30 months now).


Quote:
Originally Posted by ghodlur View Post
@GTO,Swiftnfurious,blackasta
Thanks a ton guys for the insights. The car parking has been alloted by the society in my name through an allotment letter. Although the letter does not say the allotment is for a specific period of time, I assume that it will be for lifetime.
As everybody said its not the worth the paperwork and the space can be leased to the gentleman out of goodwill. However the gentleman insisted on paying the rent so that my parking space does not become a public parking in future in the absence of any directive to the society in favour of the gentleman.
I was scouring for a readymade format for the agreement, but could not come across any. Hence will be preparing my own lease agreement with the inclusion of all the inputs by BHPians.
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Old 4th July 2012, 08:31   #38
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Default Re: Leasing out Parking Space - Do's and Dont's

Some apartment complexes/societies have very clear rules around using the premises for commercial purposes. Typically concerns are around security and access for unknown people to the society.

Not having paperwork might be a boon in such cases. Of course, the workaround to such rules is a percentage of the earning paid to the society.
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Old 4th July 2012, 11:03   #39
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Default Re: Leasing out Parking Space - Do's and Dont's

Quote:
Originally Posted by Tejas@perioimpl View Post
... I don't know about the legality of leasing out something that doesn't belong to you but to the society.
...
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.
Quote:
Originally Posted by kalpeshc View Post
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.
Quote:
Originally Posted by GTO View Post
... Is the paperwork worth the hassle?
Quote:
Originally Posted by ghodlur View Post
Thanks a ton guys for the insights. The car parking has been alloted by the society in my name through an allotment letter. Although the letter does not say the allotment is for a specific period of time, I assume that it will be for lifetime.

As everybody said its not the worth the paperwork and the space can be leased to the gentleman out of goodwill. However the gentleman insisted on paying the rent so that my parking space does not become a public parking in future in the absence of any directive to the society in favour of the gentleman.

I was scouring for a readymade format for the agreement, but could not come across any. Hence will be preparing my own lease agreement with the inclusion of all the inputs by BHPians.
Ghodlur, please rethink your plan of drawing up some formal arrangement and taking money for it. As the posters above have rightly pointed out, the parking space has been allotted by the society to you, so I doubt if you have the legal rights to let it out to someone else. The right course of action, if you didn't need the parking space, would be for the society to allot it to another member. Please check with a good cooperative societies lawyer about this. Later on if someone else complains you may be in trouble.

Retaining the spot in your name isn't costly and you can always ensure nobody else parks it there, since it would be at your discretion. On the other hand if you charged the gentleman for use of this facility, others too could offer you (or your watchman) money and use the spot for themselves. By taking money you will be foregoing any rights and interest in the parking spot and that may be a separate mess altogether.

My suggestion is let the gentleman use the space as long as you don't need it. This way there will be no legal hassles and if there is at all any dispute regarding the same, the space remains allotted to you so you can always stop its use by the gentleman.
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Old 4th July 2012, 11:15   #40
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Default Re: Leasing out Parking Space - Do's and Dont's

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Originally Posted by honeybee View Post
please rethink your plan of drawing up some formal arrangement and taking money for it.
Even I was of the opinion that taking money isnot appropriate but the gentleman was hell bent on offering the rent if he was to use the parking.
As the posters above have rightly pointed out, the parking space has been allotted by the society to you, so I doubt if you have the legal rights to let it out to someone else.
The Society does not have any objection to leasing your parking space provided it is on paper.
The right course of action, if you didn't need the parking space, would be for the society to allot it to another member.
In these times when parking space is more precious than the yellow metal, i wouldn't want to let go of the space.
My suggestion is let the gentleman use the space as long as you don't need it. This way there will be no legal hassles and if there is at all any dispute regarding the same, the space remains allotted to you so you can always stop its use by the gentleman
Right now that the arrangement in place
Please see my response in Bold.
I finally managed to convince the gentleman to use the parking space without any exchange of money and got a choclate hamper in return.
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Old 4th July 2012, 11:19   #41
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Default Re: Leasing out Parking Space - Do's and Dont's

Quote:
Originally Posted by ghodlur View Post
Please see my response in Bold.
I finally managed to convince the gentleman to use the parking space without any exchange of money and got a choclate hamper in return.
A word of caution: Replying to a quoted post as you have done is not considered good practice!

I bet that chocolate hamper will give you better returns than money. There's something about the non-monetary favours: people don't forget them easily.
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