What Happens When Something Goes Wrong — Our Legal Accountability

By Advocate Ketan Palshikar | Property Lawyer and Property Manager, Pune

Every property management service will tell you what they do when everything goes smoothly. Tenant pays on time, maintains the property, vacates when asked, and leaves the flat in good condition. In that scenario, any reasonably organised person can manage your property.

The question that actually matters is this: what happens when things go wrong?

This page answers that question specifically — not in reassuring generalities, but scenario by scenario, with the exact legal process, realistic timelines, and what you as an NRI can expect at each stage. No other property management service in Pune has a page like this. That is either because they have not thought about it, or because they do not want you thinking about it.

We want you thinking about it. Because understanding what happens when things go wrong is the clearest way to understand why legal accountability in property management is not optional.

On This Page

The Foundation: Why Legal Structure Determines Outcomes

When something goes wrong with a property, the outcome is determined almost entirely by what was put in place before the problem arose — not by what you do after it arises.

Three things determine how well a problem can be handled:

1. The tenancy agreement
A properly drafted and registered Leave and License Agreement defines the legal position of both parties clearly. When a tenant defaults, sublets, causes damage, or refuses to vacate, the agreement is the instrument through which legal remedies are accessed. A poorly drafted or unregistered agreement does not just weaken your position — it can make recovery significantly slower and more expensive.

2. The documentation record
Inspection photographs, rent receipts, society correspondence, maintenance records — every piece of documentation is potential evidence. Problems that are well-documented are problems that can be resolved legally. Problems that are undocumented become disputes about facts.

3. The accountability of the manager
When the person managing your property is the same person who can issue a legal notice, understand the legal remedies, and escalate through the correct legal process — without you needing to find a separate lawyer, brief them from scratch, and wait — the response to any problem is faster, more precise, and significantly less expensive.

Every scenario below assumes this foundation is in place — because that is what this management arrangement provides from day one.

Scenario 1 — Tenant Stops Paying Rent

This is the most common problem NRI landlords face. It begins quietly — one month’s rent is late, then another, then the excuses start.

What the legal position is

Under a registered Leave and License Agreement, the licensee has a contractual obligation to pay the licence fee on the agreed date. Failure to pay is a breach of the agreement. Unlike a lease, a Leave and License Agreement does not create a tenancy — it creates a licence. The licensee has no right to continue occupying the property once the agreement terms are breached.

What we do — step by step

Day 1-3 after due date: Rent not received. Written reminder sent to tenant by WhatsApp and email. You are informed in the same communication.

Day 7: If no payment and no satisfactory explanation, formal written notice issued to tenant citing the specific clause of the Leave and License Agreement that has been breached. Deadline given for payment.

Day 15: If payment not received and no resolution, Advocate’s legal notice issued under professional signature. This notice formally demands payment of all outstanding amounts within a defined period and puts the tenant on notice that legal proceedings will follow if the demand is not met. You are consulted before this notice is issued.

Day 30 onwards: If the tenant has not paid despite legal notice, the matter is escalated. The available legal remedies under the Maharashtra Rent Control Act, 1999 and the terms of the agreement are explained to you with realistic timelines and costs. A decision on whether to initiate recovery proceedings or negotiate a settlement is made jointly with you.

What you receive throughout

Updates at each stage. No surprises. Every notice, every communication, every response from the tenant is forwarded to you. You make the decisions on escalation — we provide the legal analysis and execute your instructions.

Security deposit application

The security deposit held at the start of the tenancy is available for application against unpaid rent in accordance with the agreement terms. A properly drafted agreement specifies exactly when and how the deposit can be applied — removing any ambiguity at the point of dispute.

Realistic timeline

Most defaulting tenants respond to a formal legal notice. In our experience, a significant proportion of rent default matters are resolved at the legal notice stage — before any court process is initiated. Where escalation to legal process is required, timelines depend on the nature of the proceedings and cannot be guaranteed — but the legal foundation in place from the start means there is no delay in accessing that process.

Scenario 2 — Tenant Refuses to Vacate at End of Agreement

A Leave and License Agreement has a defined end date. The tenant is asked to vacate. They do not leave.

Why the agreement type matters enormously here

This is where the distinction between a Leave and License Agreement and a lease becomes critical.

A lease creates a tenancy. A tenant under a lease has statutory protections under the Maharashtra Rent Control Act that can make eviction a prolonged legal process — sometimes years.

A licensee under a Leave and License Agreement has no such protection. The agreement creates a licence — a personal permission to use the property — not a tenancy. When the licence expires or is terminated, the licensee has no legal right to remain.

The Maharashtra Rent Control Act, 1999 specifically preserves the right of a licensor to recover possession from a licensee at the end of the Leave and License period. This is why every tenancy in this practice is structured as a Leave and License — never as a lease.

What we do — step by step

30 days before agreement end date: Formal notice to tenant reminding them of the vacation date and requesting confirmation of vacation.

On agreement end date: If tenant has not vacated, written demand for immediate vacation issued. Premises inspection conducted and documented.

Day 7 after end date: If tenant still occupying, Advocate’s legal notice issued demanding vacation. The notice cites the expired agreement, the licensee’s status, and the legal consequences of continued occupation.

Legal process if tenant remains: An application can be filed before the competent authority under the Maharashtra Rent Control Act for recovery of possession. Because the agreement is registered and the documentation is in order, this process has a clear legal foundation from the first day.

What this looks like without a registered agreement

An unregistered agreement significantly complicates this process. The tenant may dispute the terms, the duration, or even the existence of the agreement. The legal process becomes a dispute about facts rather than a straightforward application of a registered document.

Realistic timeline

Recovery proceedings under the Maharashtra Rent Control Act have specific procedural timelines. We cannot guarantee outcomes or final timelines — no honest lawyer can. What we can guarantee is that the legal foundation is in place, the process is initiated without delay, and you are informed at every stage without needing to manage a separate legal relationship.

Scenario 3 — Tenant Causes Damage to the Property

A tenant vacates and the property is found damaged beyond normal wear and tear.

What the agreement provides

A properly drafted Leave and License Agreement defines the condition in which the property must be returned, distinguishes between normal wear and tear and damage, and specifies the process for applying the security deposit against repair costs.

What the inspection record provides

Every property under this management has a documented inspection record — photographs taken at defined intervals throughout the tenancy, and a move-in condition report at the start. When a tenant vacates, the move-out condition is compared against this record. The photographic evidence determines the damage assessment objectively.

This is the protection that informal management almost never provides — because it requires systematic documentation throughout the tenancy, not just at the point of dispute.

What we do — step by step

On vacation notice received: Pre-vacation inspection date scheduled. Tenant is present for this inspection where possible.

Inspection: Photographic documentation of every room, fitting, and fixture. Comparison with move-in record and most recent periodic inspection.

Damage assessment: If damage beyond normal wear and tear is identified, contractor quotes are obtained for repair. The cost is assessed against the security deposit.

Security deposit settlement: If repair costs are within the security deposit, the deposit is applied and the balance (if any) is returned to the tenant. If costs exceed the deposit, the tenant is formally notified of the excess and payment is demanded.

If tenant disputes: The photographic record, the contractor quotes, and the agreement terms constitute the evidence. If the dispute cannot be resolved, the matter proceeds through appropriate legal process.

What you receive

The full inspection report with photographs, the damage assessment, the repair plan with costs, and the security deposit settlement — all before the deposit is released. No deposit is released without your knowledge and approval.

Scenario 4 — Society Dispute or Legal Notice

Housing societies generate disputes. Maintenance objections, noise complaints from neighbours, tenant behaviour complaints, renovation permission disputes, parking issues — these are routine in Pune’s housing societies. For an NRI owner, they are also invisible unless someone is watching.

How disputes typically arise without management

A society sends a notice to the flat owner’s registered address — which may be the flat itself, or an old address in Pune, or your parents’ address. You are in Toronto. The notice arrives. No one opens it, or it is opened and not understood, or it is forwarded to you weeks later when the response deadline has passed. The society escalates. What was a resolvable dispute becomes a formal complaint with an adverse record.

What we do

All society correspondence is addressed to this office as your authorised representative under the registered PoA. We attend society meetings on your behalf. We receive and respond to notices within the required period.

For routine disputes — tenant behaviour, maintenance objections, parking — the matter is handled through formal written communication with the society. Most routine disputes are resolved at this level.

For maintenance levy disputes — where the society is raising a special assessment or levy that you wish to dispute — the legal basis of the levy is reviewed and a formal response is drafted.

For serious disputes — where the society is threatening legal action or has filed a complaint with a competent authority — the matter is escalated within this practice. Because the same Advocate manages the property and handles the legal response, there is no gap between the management function and the legal response.

What you receive

Every society communication — notice, circular, AGM minutes, special levy — is summarised in your monthly report. Disputes are flagged immediately, not held for the monthly report.

Scenario 5 — Encroachment or Unauthorised Occupation

A vacant property is particularly vulnerable. Encroachment — someone occupying or asserting rights over your property without authority — is a real risk for NRI-owned properties that appear unmanaged.

How encroachment happens

It rarely happens suddenly. It begins with something small — a neighbour storing items in the corridor outside your flat, a person occupying the parking space assigned to your flat, a claim that a part of the property belongs to someone else. If unchallenged, these situations solidify. In more serious cases, a vacant flat is occupied entirely — sometimes with fabricated documentation.

What active management prevents

A registered PoA with an active Advocate on record creates a publicly visible management presence. Monthly physical inspections with photographic documentation create a continuous record of the property’s status. Any change in the property’s condition — a lock changed, access altered, items introduced — is detected early.

Early detection is the difference between a letter and a legal proceeding.

What we do when encroachment is identified

If the encroachment is minor and recent: Formal written notice to the encroaching party citing your title and the registered PoA authority. Most minor encroachments — parking space use, corridor storage — are resolved at this stage.

If the encroachment is more serious: Legal notice under Advocate’s signature demanding immediate vacation. Simultaneously, the property’s title documents and the encroachment evidence are documented in preparation for legal proceedings if required.

If legal proceedings are required: An action for recovery of possession is the appropriate remedy. This falls within legal services — the fees and process for which are separate from the management arrangement and are discussed with you specifically.

Scenario 6 — Tenant Sublets Without Permission

A tenant you vetted and approved has sublet the flat — or part of it — to someone else without your knowledge or permission.

Why this is a serious problem

Subletting without permission is a breach of the Leave and License Agreement. More importantly, the person actually occupying the property is someone you did not vet, did not agree to, and whose presence creates risks you did not assess.

In Maharashtra, subletting without permission is also grounds for termination of the licence — a clear legal basis for demanding vacation.

What we do

Detection: Periodic inspections reveal subletting in most cases. Neighbour complaints relayed through society communications are another detection mechanism.

Response: Written notice to the original licensee citing the breach. The sublet occupant is also put on notice that they have no legal right to occupy the property.

If not resolved: Formal legal notice and, if necessary, termination of the Leave and License Agreement on grounds of breach, followed by recovery proceedings.

Scenario 7 — Death of Tenant During Tenancy

This scenario is rarely discussed but does arise. A licensee passes away during the tenancy period.

The legal position

Under a Leave and License Agreement, the licence is a personal permission granted to the named licensee. It does not automatically pass to the licensee’s family members or legal heirs. The surviving family members have no independent legal right to continue occupying the property — though in practice, a humane and reasonable approach is appropriate.

What we do

On being informed of the tenant’s death, a formal communication is issued to the family members clarifying the legal position and establishing a reasonable timeline for vacation. The approach balances the legal position with appropriate sensitivity to the circumstances.

If the family members refuse to vacate or assert a claim to continue the tenancy, the legal position under the Leave and License Agreement is pursued.

Scenario 8 — Statutory Notice from PMC / PCMC

Pune Municipal Corporation issues notices for a range of reasons — unpaid property tax, illegal construction, building violations, fire NOC lapses, encroachment on public land. For an NRI owner, these notices are invisible unless someone is watching.

What we do

All PMC/PCMC correspondence is received by this office as your authorised representative. Notices are reviewed immediately on receipt.

Property tax notices: If property tax is current (which it is under this management arrangement), the response to any tax-related notice is straightforward. If there are any discrepancies in the tax records, these are identified and corrected.

Building or construction violation notices: These are reviewed on legal merits. If the notice relates to something the current owner did not cause (a pre-existing violation, a tenant’s unauthorised modification), that context is presented in the formal response.

Serious violations requiring rectification: You are informed immediately. A plan for compliance is prepared and presented for your approval. Compliance is managed under the PoA within authorised scope.

What Falls Outside Management Scope

There are situations that go beyond property management and become legal proceedings. These include:

  • Court proceedings for recovery of possession
  • Disputes involving title to the property
  • Claims against the society in a competent forum
  • Criminal complaints (which this practice does not handle — see practice scope)

When a matter crosses from management into legal proceedings, it transitions from the management arrangement to a separate legal services engagement. Fees for legal proceedings are separate from the management retainer and are discussed with you specifically when the situation arises.

This distinction is stated clearly because transparency about scope is part of the accountability this service is built on. You will never discover unexpectedly that a matter is outside the management scope — it will be identified and communicated to you before the threshold is crossed.

Frequently Asked Questions

1. What if the tenant is someone my family knows — a friend or relative of a relative? Does that change how you handle a default?

The legal position does not change based on the personal relationship. What changes is the approach — a situation involving a known person is handled with appropriate sensitivity before formal notices are issued. A conversation, a written reminder with a reasonable deadline, a clear explanation of the legal position — these steps are taken before escalating to formal notices. But if the matter is not resolved, the legal process follows regardless of the personal relationship. Your legal interest as the property owner is the primary consideration.

2. How long does it actually take to recover possession from a tenant who refuses to vacate?

This depends entirely on the legal foundation in place. With a registered Leave and License Agreement, the Maharashtra Rent Control Act provides a specific process for recovery of possession from a licensee. We cannot guarantee timelines because court processes involve variables outside any lawyer’s control. What we can say is that a registered Leave and License Agreement gives you the strongest available legal position in Maharashtra for recovery of possession — significantly stronger than a lease or an unregistered agreement.

3. You mentioned that legal proceedings are outside the management scope. Does that mean I need to find another lawyer?

No. Legal proceedings that arise from property management situations are handled within this practice — just under a separate legal services engagement with separate fees. You do not need to find a new lawyer, brief them from scratch, or manage a separate relationship. The same Advocate who manages the property and drafted the agreements handles the legal escalation. The distinction is in the fee structure — not in the relationship.

4. What if the problem is caused by the housing society — not the tenant?

Society disputes are within management scope. We handle society communications, attend meetings, and respond to notices as your authorised representative. If the society’s action raises a legal question — an unlawful levy, an incorrect demand, a decision that exceeds the society’s authority — the legal position is reviewed and a formal response drafted. If the matter requires formal legal proceedings against the society, that transitions to a legal services engagement as described above.

5. What is the security deposit amount typically held, and is it enough to cover problems?

Security deposit adequacy is assessed property by property. For a furnished property, the deposit should reflect the replacement value of key furnishings. For an unfurnished property, it should reflect at minimum two to three months’ rent — enough to cover a default period and basic repair costs. We advise on the appropriate deposit amount at the tenancy documentation stage. A deposit that is too low is a problem that cannot be fixed after the tenant is in — it must be addressed before the agreement is signed.

6. What happens if there is an emergency at the property — a flood, a fire, a break-in — and I am unreachable?

Emergencies are handled immediately under the management PoA authority. Containment action — calling emergency services, arranging emergency repairs to prevent further damage, securing the property — does not wait for your approval. You are contacted as soon as possible by all available channels. All emergency actions and expenditures are documented and reported to you in full. Post-emergency, a full assessment is prepared and the path forward is discussed with you before any significant expenditure is committed.

7. Has a situation ever been handled badly — and what did you learn from it?

This is a fair question and one I will answer directly. Property management involves human situations — tenants, societies, contractors, statutory authorities — and not every situation resolves cleanly or quickly. What the legal structure provides is not a guarantee of perfect outcomes but a framework for handling imperfect situations accountably. When something does not go as planned, you are told. The documentation record means there is always a clear account of what happened and why. That accountability — to you, as the property owner — is what this practice is built on.

8. What if I am unhappy with how a situation was handled?

The management arrangement is revocable. If you are dissatisfied with how a matter was handled, the first step is a direct conversation — understanding what happened, what could have been done differently, and whether the approach was within the scope and standard of the management arrangement. If you remain dissatisfied, you can revoke the PoA and transition management. The documentation record — which is yours — travels with you. We do not hold documents hostage to the management relationship.

9. Do you handle situations for properties that were previously managed informally — where there is no proper documentation?

Yes, and this is actually a common starting point. Many NRI owners come to us after an informal arrangement has run into trouble — an existing tenant with an unregistered agreement, missing rent receipts, a society dispute that was not addressed. The first step is a documentation audit — understanding what exists and what is missing. From that baseline, we establish what can be remedied and what legal exposure exists. It is almost always better to address these gaps than to continue with an undocumented situation.

10. What is the single most important thing an NRI property owner can do to protect themselves before any problem arises?

Ensure that every tenancy is governed by a properly drafted, registered Leave and License Agreement — executed before the tenant takes possession, not afterwards. Everything else in this page — the legal notices, the recovery process, the security deposit application — depends on the foundation of that agreement. An NRI owner with a registered agreement and a documented management structure is in a fundamentally different legal position from one without it. This is the one thing that cannot be fixed after a problem has already started.

Areas We Cover in Pune

This service covers the entire Pune PMC and PCMC area. Properties in gram panchayat areas or outside Pune district are not covered.

Localities we regularly serve: Kothrud, Aundh, Baner, Bavdhan, Pashan, Wakad, Hinjewadi, Viman Nagar, Kalyani Nagar, Koregaon Park, Hadapsar, Kondhwa, Undri, Karve Nagar, Shivajinagar, Deccan, Erandwane, Camp, Pimpri-Chinchwad, Talegaon Dabhade, Lonavala and surrounding areas within PMC/PCMC limits.

Contact

Advocate Ketan Palshikar
Property Lawyer and Property Manager, Pune

14, Eiffel Square, 1530, Sadashiv Peth, Off Tilak Road, Pune – 411030

Phone / WhatsApp: +91 9325624069
Email: palshikar.ketan@gmail.com
Website: palshikarlegal.in

If your property is currently in one of the situations described on this page — or if you want to ensure it never gets there — the first conversation is the right place to start.

Your property. Our legal responsibility.

Related Pages

Vacant Property Management in Pune for NRIs

NRI Property Management in Pune — Pillar Page

Why Lawyer-Led Property Management is Fundamentally Different

The Power of Attorney for NRI Property Management

Monthly Reporting and Transparency

Tenant Finding and Vetting for NRI Properties in Pune

Leave and License Agreement for NRI Landlords in Pune