Rental Properties in Mumbai: The Ins and Outs of Short-Term Leasing
All about property leasing in Mumbai, shorter rental agreements attract premium charges, and a look at properties taken on short-term lease in Mumbai
Mumbai Real EstateProperty LeasingShort Term LeaseCommercial PropertiesResidential PropertiesReal Estate MumbaiJul 10, 2024
However, the rent charged for a shorter duration is generally 20% higher than the market rate. This is because the supply of properties that can be leased for a shorter duration is less than properties available in the market for a longer duration.
Property owners in Mumbai sign a leave and license agreement with the tenants. A stamp duty is to be paid at the time of registering the leave and license agreement. The stamp duty amount depends on the monthly rental and deposit charged by the property owner. On an average, as many as 30,000 leave and license agreements are signed and registered with the registry office of Maharashtra government every month.
A shorter rental agreement attracts premium charges. According to brokers, property owners who rent their apartment for a shorter period generally charge higher rentals as options in this segment are few and far between. For instance, a property that can fetch a monthly rent of ₹500 per sq ft if leased for five years can get ₹600 or ₹700 per month if it is leased for six months.
Recently, Agni Commex LLP had given a commercial space of almost 5830 sq ft on rent to IMC India Securities Pvt Ltd for ₹700 per sq ft per month in BKC in Mumbai. The commercial space located in Maker Maxity 4, an office space in BKC, has been leased to IMC India Securities Pvt Ltd for ₹40.81 lakh per month that works out to be ₹700 per sq ft.
However, real estate brokers said that considering the rental period is only six months, the per sq ft rent charged is ₹700 per sq ft which is higher than the usual ₹500 to 550 per sq ft charged for properties in BKC.
Information
Mumbai, the financial capital of India, is home to a thriving real estate market. The city is a hub for various industries, including finance, IT, and entertainment. The demand for rental properties in Mumbai is high, driven by the city's growing population and limited housing supply.
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Frequently Asked Questions
Is it possible to rent a property in Mumbai for a short duration?
Yes, it is possible to rent a property in Mumbai for a short duration of two to six months.
Why do property owners charge a premium for short-term leases?
Property owners charge a premium for short-term leases because the supply of properties that can be leased for a shorter duration is less than properties available in the market for a longer duration.
What is the average stamp duty amount paid for a leave and license agreement in Mumbai?
The stamp duty amount depends on the monthly rental and deposit charged by the property owner, and varies on a case-by-case basis.
Can I negotiate the rent for a short-term lease?
Yes, you can negotiate the rent for a short-term lease, but the property owner may be less willing to negotiate due to the shorter duration of the lease.
What are the documents required for a leave and license agreement in Mumbai?
The documents required for a leave and license agreement in Mumbai include the agreement itself, identity proof, and address proof of the tenant and property owner.
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