I would like to have expert opinion of the readers of this forum regarding pros and cons of renting out property to a government office - a federal ministry.
I have a residential 1 Kanal property in New Muslim Town available for rent. I have got an offer from a federal ministry office - regional office in Lahore. The rental amount that they have offered is acceptable to me. However, since this is a government organization, they have conveyed to me following terms:
1. No security deposit
2. They will take possession after formal approval and signing of rental agreement by the Ministry without any advance rental payment
3. The first rental payment will be made after about 3 months of posession. They will make the payment for six months rent and then this continues after every six months
4. Increase in rental amount shall be according to rental ordinance i.e 28% after 3 years or max. 10% every year
5. Since it is a government office, they say there is no requirement for the residential property to be commercial
I have few questions now:
A. Would you consider it safe to rent out property to a government office keeping in view above terms?
B. What could be the pros and cons?
C. If the government officers misuse the property and do any objectional activity - it is understood that they will be responsible themselves but is there any liability on the owner also?
Regards
Ahmed Tahir replied on Tuesday, August 31, 2010 06:57 AM
Not at all recommended as I have a personal experience of renting my building to a goveronment office and it took 9 years to get the pemises vacated |