Short-Term Rentals in Mumbai: Can You Lease a Property for 2-6 Months?
While the preferred period to rent a property in Mumbai is a minimum one year, there are instances when properties are leased for a shorter duration for two to six months.
Mumbai Real EstateShort Term RentalsProperty LeasingLeave And License AgreementStamp DutyReal Estate NewsJul 10, 2024
Property owners in Mumbai sign a leave and license agreement with tenants, which requires a stamp duty payment. On average, 30,000 leave and license agreements are signed and registered with the Maharashtra government every month.
A shorter rental agreement attracts premium charges, as 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. 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. The commercial space was leased for ₹40.81 lakh per month, which works out to be ₹700 per sq ft. However, 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.
While short-term rentals are possible, they come with a premium. Property owners and brokers need to consider the risks and benefits of such agreements, including the higher rent and the potential for shorter lease periods.
Frequently Asked Questions
Is it possible to rent a property in Mumbai for 2-6 months?
Yes, it is possible to rent a property in Mumbai for 2-6 months, but landlords may charge a premium.
Is there a legal provision that prohibits property owners from renting out private property for a shorter period?
No, there is no legal provision that prohibits property owners from renting out private property for a shorter period.
Why do property owners charge a premium for short-term rentals?
Property owners charge a premium for short-term rentals 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 rent premium charged for short-term rentals in Mumbai?
The typical rent premium charged for short-term rentals in Mumbai is around 20% higher than the market rate.
What is the average number of leave and license agreements signed and registered in Mumbai every month?
On average, 30,000 leave and license agreements are signed and registered with the Maharashtra government every month.
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