Rickshaw and Tenant

Topics: Rickshaw, Auto rickshaw, Cycle rickshaw Pages: 7 (2611 words) Published: August 26, 2013
CASE STUDY no.1
Relationship between an owner of the asset and his tenant.

Introduction:
This case study revolves around a man who is working as an auto rickshaw driver in the city of Lahore, Pakistan. He belongs to a poor family. So he has chosen to drive auto rickshaw in the suburbs of the city. He is actually working as a tenant for his owner. His owner has given him his asset and requires a fixed amount of money in return on daily basis. The name of the auto rickshaw driver is Mohammad Aslam. He is 38 years old. He is basically a driver by profession. He has been driving an auto rickshaw from the last two years. Before coming into this field, he was working as a chauffeur for a family. He was quite happy working there but unfortunately he had to dismiss that job as that family had moved abroad. Since he had no other work related to his field, so he decided to drive auto rickshaw in the main city. He lives in a rented house in the area of Model town, Lahore. He is married and has three children. He has to feed four persons in his family.

Problems/Challenges of the tenant:

According to M. Aslam, he is surviving from hand to mouth. Whatever he earns, he spends it too quickly. He doesn’t have any savings with him. He has four dependents that he has to look after. He said that his family is happy with him but he is not satisfied with his job. He earns quite less as far as his expectations are concerned. He wants to start his own business. He believes that he can stay happy and earn more only if he does his own business. By working under this profession, he earns less. Sometimes he can’t pay off his children’s school fees. So this also creates a lot of problems for the tenant. He also complained that he has to bear all the expenses of the vehicle. All the repairing and maintenance charges are borne by the tenant. In case of any loss or accident, the tenant has to pay for those expenses. The petrol and C.N.G costs are also borne by the tenant. If expenses exceed Rs. 500 then the owner has to pay for that. There is also no written agreement or contact between the tenant and his owner. The owner trusted this guy and handed over his vehicle to him. There is only a verbal agreement between the two parties.

Opinion of the owner:
The owner of the asset is quite satisfied with the tenant because he gets Rs. 300 on daily basis. He earns Rs. 9000 from his auto rickshaw on monthly basis. He doesn’t have to worry much because he has to get his fixed amount from his tenant whether he has earned or not. Business outcomes:

The tenant is not happy with this contract as he earns less. The owner is happy because he gets paid whether there is any earning or not. There is also no written contract between the two parties. There is no evidence available of this contract. Learning outcomes:

There can be many learning outcomes derived out of this case study. In order to make this owner-tenant relationship better and strong, there should be a proper written agreement or a contract between the two parties. Both the parties should have evidence in writing. In case of any mishap or loss, they could show the written evidence to the respective authorities. Also, the owner should understand the nature of work of the tenant. He should show some leniency towards his tenant. The fixed amount of money should be less and it should be agreed upon the two parties. The tenant should be happy with the agreed amount as well the owner. Both the parties should be happy with this contract. The relationship between the two parties can be improved more if the owner takes the security of the tenant. He should minimize the rental amount. He should understand the problems faced by the tenant. He should support his tenant in every possible way. Finance facilities should be provided to the tenant so that he faces less problems in his life. Banks and specialized institutions should provide micro financing facilities to such tenants so that they can enjoy...
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