Short-Term Leasing in Mumbai: Is it Possible to Rent a Property for 2-6 Months?
While Mumbai's real estate market typically favors long-term leases, property owners can rent out their properties for shorter durations, albeit at a premium rate.
Mumbai Real EstateShort Term LeasingLeave And License AgreementProperty RentalMaharashtra GovernmentReal Estate MaharashtraJul 10, 2024
In Mumbai, property owners sign a leave and license agreement with tenants, which requires a stamp duty to be paid at the time of registration. The stamp duty amount depends on the monthly rental and deposit charged by the property owner. On average, around 30,000 leave and license agreements are signed and registered with the registry office of the Maharashtra government every month.
Brokers note that property owners who rent their apartments for a shorter period generally charge higher rentals as options in this segment are limited. 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. 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.
Recently, Agni Commex LLP gave 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, Mumbai. While the rental period is only six months, the per sq ft rent charged is ₹700, which is higher than the usual ₹500 to 550 per sq ft charged for properties in BKC.
Information
Propstack is a real estate data and analytics firm that provides insights into the Indian property market.
IMC India Securities Pvt Ltd is a financial services company that offers a range of services, including securities trading and investment advisory.
Maharashtra government is the state government of Maharashtra, responsible for governing and regulating various aspects of the state, including real estate.
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, typically ranging from two to six months, but the landlord may charge a premium rate.
What is a leave and license agreement?
A leave and license agreement is a contract between a property owner and a tenant, where the owner allows the tenant to use the property for a specific period in exchange for a monthly rental and deposit.
What is the average number of leave and license agreements signed in Mumbai every month?
According to real estate brokers, around 30,000 leave and license agreements are signed and registered with the registry office of the Maharashtra government every month.
Why do property owners charge a premium rate for short-term leases?
Property owners charge a premium rate 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 typical rental period in Mumbai?
The typical rental period in Mumbai is a minimum of one year, but properties can be leased for shorter durations, ranging from two to six months.
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