Short-Term Rentals in Mumbai: A Growing Trend in the Financial Capital
Discover the possibilities of renting a property in Mumbai for two to six months, and what you need to know about the premium charges that come with it.
Mumbai Real EstateShort Term RentalsProperty LeasingIndia Real Estate MarketReal Estate PuneJul 10, 2024
In Mumbai, property owners sign a leave and license agreement with tenants, which requires the payment of stamp duty at the time of registration. On average, around 30,000 leave and license agreements are signed and registered with the Maharashtra government's registry office every month.
A shorter rental agreement attracts premium charges because the supply of properties available for short-term leases is limited. As a result, property owners who rent their apartments for a shorter period generally charge higher rentals. 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 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. The commercial space, located in Maker Maxity 4, has been leased to IMC India Securities Pvt Ltd for ₹40.81 lakh per month, which works out to be ₹700 per sq ft. Real estate brokers note that considering the rental period is only six months, the per sq ft rent charged is higher than the usual ₹500 to 550 per sq ft charged for properties in BKC.
Information
Propstack is a leading real estate data analytics firm that provides insights into the Indian real estate market.
IMC India Securities Pvt Ltd is a financial services company that provides investment and wealth management solutions.
Frequently Asked Questions
Is it possible to rent a property in Mumbai for two to six months?
Yes, it is possible to rent a property in Mumbai for two to six months, but the landlord may charge a premium considering the shorter lease period.
What is the typical rental period in Mumbai?
The preferred rental period in Mumbai is typically a minimum of one year.
Is there a legal provision that prohibits property owners from renting out their properties for a shorter period?
No, there is no legal provision that prohibits property owners from renting out their properties for a shorter period.
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 available for short-term leases is limited, and they want to maximize their returns.
What is the usual rent charged for properties in BKC, Mumbai?
The usual rent charged for properties in BKC, Mumbai is around ₹500 to 550 per sq ft.
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