A new problem has arisen in Bengaluru, with some owners refusing to refund deposits collected from their tenants.
Jiya (name changed) had informed her owner a month ago that she would be moving out. “I first tried explaining my situation and sought a reduction in rent. When the owner said no, I gave him a month’s notice and said I would vacate. He agreed but now he’s not returning my calls,” she says.
What you can do
Lawyer Kenneth Marian Anand Peres says it is important to understand that the pandemic has been hard on landlords too.
“It’s not that they run away with the tenants’ money. They have bills to pay and might have put in the money in schemes that don’t give them access immediately,” he explains. In some cases, Kenneth says, homes have remained empty, and the tenants have not paid maintenance and power bills.
“However, in a case where all of this is fine and yet the landlord isn’t cooperating, the tenant can leave the premises and file a case for cheating and criminal breach of trust. The court is likely to rule in the tenant’s favour and even grant 12 per cent interest on arrears,” he says. The police don’t immediately come into the picture.
The other side
A landlord, who owns two apartments, says both his tenants have left. “We have not found new tenants since September, but are paying our loan instalments,” he says.
Nayaz Ahmed, proprietor of Indian Realtors and Co, says agents have taken a hit too. “Tenants don’t want to pay as much as they used to. Landlords are at loss. Agents are giving discounts and taking only 15 days brokerage amount from both tenants and landlords; some landlords and agents have an understanding so we don’t get paid that amount either,” he says.
Pradeep Joe, owner of First Estate and chairman for Confederation of Real Estate Associates - India, feels this will only last for a couple of months. “All those people who have left town will be back in a few months and the market will be booming again. Till then it’s just a small hiccup.”