Yes.
There is no restraint to let a residential property on rent for commercial purposes.
In this case your flat was already getting utilise for commercial gain.
Now if you induct a tenant to run a office there is no restraint at all
Go ahead.
I own a flat in a residential building in kolkata with a society and is registered initially as a residential flat. I have operated my office from this place for 15+ years. The trade license for my business is registered from here. We have being paying taxes at commercial rates for this property since the last 10 yrs.Can I rent it out for commercial purposes for a back office or dental clinic ? If no, what papers do I need to to rent it out commercially ?
Yes.
There is no restraint to let a residential property on rent for commercial purposes.
In this case your flat was already getting utilise for commercial gain.
Now if you induct a tenant to run a office there is no restraint at all
Go ahead.
Yes you can do so. There is no need to seek permission for the same. In residential property you can operate commercially to some extent is permissible
Residential building can use only residential purpose .Letting out residential flat for commercial purposes, one has to have permission from the local civic body as the tax structure and other charges will vary from residential to that of the commercial place.
As far as business licence, the tenant will obtain based on the rental agreement. When your tenant will apply for trade license showing your flat as the place of business, the local authority officials will not provide Trade License if the area or building is not to be used for commercial purpose.
it is necessary to get an approval from the housing society before conversion of residential property to commercial property. it may also be necessary to obtain permission from the local municipal authority for the conversion of a flat into a commercial establishment. Once a property is marked as commercial property, it would be treated as a commercial property for all purposes, which includes paying more as property tax.
If you had been using your flat for commercial purposes only from a portion of it and balance was still being used as residence then there is no change of user
However you have been paying taxes at commercial rates. I dont know how that is being done in absence of change of user of the premises from residential to commercial by the Municipal Corporation
If the renting out for clinic purpose is only in respect of a portion of the premises then it's fine. If entire premises are being rented then permission from Corporation may be needed for change of user
Also the society has to give its noc for such change of user and renting out because renting for a clinic means that the premises will be visited by patients and outsiders which other society residents may object to
If you're paying taxes for commercial purposes than you can rent property commercial back office or dental clinic.
Dear Client,
You may give on rent just by simply doing a registered rent agreement. But residential flat can not be given on rent. Concerned authority may fine on you. If no one is objecting, you may give on rent the said property.
1. As per a recent SC judgment, "commercial activties" are barred in a residential only building.
2. However Professionals (Doctors, Advocates, Architects .... ) are allowed for "SELF USAGE" of their residential premises for their own office activities and such office activities are NOT classified as "commercial activties"
Keep Smiling .... Hemant Agarwal
VISIT: www.chshelpforum.com
- As per rules of housing society, No commercial use of property in housing society,
- Other side, A fixed area can be legally used for commercial purpose limited to official use only , i.e. can be used for services by resident advocates, chartered accountants, doctors ,tutorials, dance and yoga classes.
- Further, one can use the bungalow/ flat for commercial purpose provided, no production or manufacturing activity is conducted and the commercial use shall be completely professional in nature, and it should not cause nuisance to other dwellers of the society, but, approvals from the housing society are required.
- Hence, you can give the said flat for dental clinic.
If the zoning rules and the housing society management rules allow it, you can use or rent your residential property for commercial activity. However, states have different sets of rules on conversion of residential property to commercial property. Some states allow up to 30 per cent area of a house to be put to commercial use by professionals such as doctors, lawyers and chartered accountants, but others do not.
In case your state allows this, it is necessary to get an approval from the housing society before conversion of residential property to commercial property. Depending on the nature of the business, it may also be necessary to obtain permission from the local municipal authority for the conversion of a flat into a commercial establishment. Once a property is marked as commercial property, it would be treated as a commercial property for all purposes, which includes paying more as property tax.
Yes you can rent out the property for back office or doctor's clinic because you are already using the property for commercial purpose and pay taxes accordingly.