Hyderabad: Informal renting of residential properties across Hyderabad is raising concerns over tax evasion, illegal sub-leasing and security breaches amid the city’s rapidly growing housing sector.A sub-registrar, speaking on condition of anonymity, told TOI that in one ward with a population of around 59,000 as of 2019, only about 2% of residents had formally registered their rental agreements. “Many want to avoid stamp duty charges and legal procedures, so they avoid agreements altogether,” the official said.Brokers in areas such as Begumpet, Rasoolpura, Cyberabad and Ameerpet said residential spaces are often rented out through verbal arrangements without police verification. According to the brokers, some property owners seek to avoid higher tax liabilities, while several deals are allegedly settled in cash.Resident welfare associations (RWAs) said frequent tenant turnover has also emerged as a security concern. “Bachelors usually move in and out within months, which is one of the reasons why agreements are avoided, and this could lead to security breaches,” said Sai Ravi Shankar, president of the Federation of Gated Communities, Cyberabad. He added that RWAs in many gated communities are now making rental agreements and police verification mandatory and are urging the Cyberabad police commissionerate to issue stricter guidelines.Shivam Dubey, a tenant in Panjagutta, was recently locked out of his flat after the owner abruptly took possession of the property without giving him any notice or a timeframe to vacate. “Even my security deposit was not returned, despite multiple calls that went unanswered,” he said. A registered rental agreement specifying a lease period, he added, could have offered better protection.Similar complaints have been raised by other tenants, who alleged that landlords either withheld their security deposits or suddenly asked them to vacate because of changes in their personal circumstances.The United Federation of Resident Welfare Associations (U-FERWAS) said it has been conducting awareness campaigns to encourage house owners to execute registered rental agreements before handing over possession of their properties.“A registered rental agreement is not merely a legal formality. It is an essential safeguard for your property, your rights and your peace of mind,” said B T Srinivasan, general secretary of U-FERWAS.
