• Rent out flat for commercial office or doctors clinic

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 ?
Asked 4 years ago in Property Law
Religion: Hindu

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15 Answers

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. 

Devajyoti Barman
Advocate, Kolkata
23351 Answers
523 Consultations

30% Residential property can be use for professional purpose. No document require.

Yogendra Singh Rajawat
Advocate, Jaipur
23012 Answers
31 Consultations

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

Prashant Nayak
Advocate, Mumbai
32934 Answers
209 Consultations

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.

 

Ajay N S
Advocate, Ernakulam
4097 Answers
113 Consultations

You need society permission to rent out your premises for back office or dental clinic 

Ajay Sethi
Advocate, Mumbai
97605 Answers
7901 Consultations

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

 

Yusuf Rampurawala
Advocate, Mumbai
7765 Answers
79 Consultations

You can rent it out commercially. The tenant has to pay taxes as per the rates along with the rent.

Rahul Mishra
Advocate, Lucknow
14107 Answers
65 Consultations

If you're paying taxes for commercial purposes than you can rent property commercial back office or dental clinic.

Ganesh Kadam
Advocate, Pune
12997 Answers
264 Consultations

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.

Jaswant Singh
Advocate, Gurugram
930 Answers
2 Consultations

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

Hemant Agarwal
Advocate, Mumbai
5612 Answers
25 Consultations

- 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. 

Mohammed Shahzad
Advocate, Delhi
14773 Answers
225 Consultations

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.

  • Get a shop and establishment licence from the municipal authority concerned. 

  • Before you apply, be clear on the area you would need and the kind of business you plan to carry out. 

  • The civic body would levy commercial charges on the property and water and power supply, depending upon the area, the property size and the nature of business activity.

 

T Kalaiselvan
Advocate, Vellore
87806 Answers
2365 Consultations

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.

Mohit Kapoor
Advocate, Rohtak
10687 Answers
7 Consultations

As per the details provided by you my suggestions would be that you need permission from society. 

Mohammed Mujeeb
Advocate, Hyderabad
19326 Answers
32 Consultations

You can rent it out for commercial purposes 

Rahul Jatain
Advocate, Rohtak
5365 Answers
4 Consultations

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