Renting Out Property in India as an NRI: The Agreement Checklist
Managing a tenancy from abroad adds real risk. A licence agreement, a local power of attorney and a few extra clauses cover most of it.
- Act
- Model Tenancy Act, 2021 (2021)
- Act number
- Not a numbered central Act — a model law approved by the Union Cabinet on 2 June 2021 for voluntary adoption by states and UTs
- Enacting authority
- Ministry of Housing and Urban Affairs (MoHUA), Government of India
This article is for general information only and does not constitute legal advice. Always verify current provisions against the official source before relying on them.
Prefer a licence agreement over a lease
For an NRI landlord, a leave and license agreement is usually the safer structure — it doesn't grant the tenant a transferable interest in the property and it automatically lapses if the property is sold, which matters if you might liquidate the asset without warning.
Appoint a Power of Attorney holder
Managing signing, inspections and rent collection from abroad is impractical. A registered Power of Attorney to a trusted relative or a property management firm lets that person execute the agreement, collect rent and represent you in any Rent Authority proceeding.
Get the tax and repatriation basics right
Rental income earned by an NRI is taxable in India and tenants are required to deduct TDS at the applicable rate before remitting rent — build this into the payment clause so there's no dispute over the net amount received each month.
Don't skip local verification just because you're remote
Police tenant verification and document checks matter more, not less, when you can't personally inspect the property regularly — route this through your PoA holder or a local property manager as a standing responsibility in their mandate.