How to rent a house in Mumbai ?

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rental homes

Are you looking to rent a house or apartment in Mumbai? If yes, here are some tips provided  for renting a house and key points to be noted when going to search houses for the rent in Mumbai. You need more thoughtful approach to rent a house in Mumbai. You should have a proper research and planning before renting a house in Mumbai.

Mumbai has a cost-of-living-index of 29.28, which is the highest cost-of-living-index in India. Always consider the cost-of-living-index when you rent a house in Mumbai. That’s why you can do savings and track your expenses every month.

This article discusses on houses for rent in Mumbai. Here are some suggestions about documents, rental cost, upfront cost etc.,

How to find a house in Mumbai

Most people rely on real estate agents to find houses for rent in Mumbai.  Real estate agents make finding a house process more simpler. Follow the steps below:

  • Find a real estate agent and inform about your necessary requirements.Real estate agent prepares a list of rental homes based on your budget and location.The agent picks you up on a car and spends most of the time with you until you will fix the rental house.Agent becomes the mediator between you and the landlord. The agent also helps you with the landlord for negotiation.
  • Once your agreement is finalised, the agent works together with landlord to finalise your lease contract. Your information what you provide is the most important. This process takes upto a week.Read your lease agreement before finalising it. If you agreed, you should provide all the necessary documents and sign your lease contract.

Leases and contracts in Mumbai

Leases in Mumbai are also known as “leave and license agreement”. Leases and agreements made for one or two years(maximum for 5 years). Lease and agreement may be signed by you or sometimes by your company also. Exit clauses should agreed upon by both sides (landlord and tenant). A special exit clause can be used when a tenant has to vacate immediately, “acts of God” is advocated.

Important documents to be submitted

  • Address proof(Aadhar card, PAN card,Voter ID and passport)
  • Passport Size photos
  • Signed lease contract
  • Work contract (employees)

Rental price in Mumbai

Before fixing your budgeted rental price, you should consider the following factors:

Rental rates for North and South Mumbai:

  • 1BHK home- Rs50,000 to Rs 1,00,000
  • 2BHK home- Rs 75,000 to Rs300000
  • 3BHK home- Rs 1,00,000 to 4,50,000
  • 4BHK home-Rs 2,00,000 to 6,50,000
  • 5BHK home-  Rs 3,00,000 to 12,00,000

Rental rates for Navi Mumbai:

  • 1BHK- Rs 20,000 to Rs 25,000
  • 2BHK- Rs 30,000 to Rs 40,000
  • 3BHK- Rs 40,000 to Rs 60,000

Locality

The best location you have chosen gives the ease of accessing essential facilities like water, electricity,  gym, supermarket(food and grocery), hospitals, schools and transportation.

If you are an employee, you should choose your location near to your office. This saves a lot of time and energy. A better location shows the rent should have moderate to high houses for rent in Mumbai. 

Upfront costs

Upfront costs for houses for rent in Mumbai includes:

  1. Security deposit
  2. Brokerage or commission
  3. Transportation cost
  4. Fees for rental agreement

Security deposit

You must pay a security deposit as house advance before moving into the rental house.

Sometimes you don’t have an idea how much security deposit should be charged?

According to new model tenancy act, you should charge one or two month of rental income as a security deposit.

These security deposits can deduct from the following ways when

  • Help to terminate your lease easily
  • Can’t pay rents on time
  • Can’t pay electricity and water bills
  • Property damage

When security deposit is not used, the landlord should return back to the tenant at the time of leaving the house.

Brokerage fees

When you are choosing a broker, you should confirm brokerage or commission fees before fixing your rental house. Because, brokers find your rental houses. You need to pay some extra amount.

Transportation cost

You must not overlook the transportation cost when shifting to your new rental house. It includes transportation, hiring the people and other costs included in the entire relocation process.

CONCLUSION

Mumbai ranks the sixth-highest rental expenses in the world. It shows that Mumbai has the highest rental expense in India compared to other cities. Before going to search houses for rent in Mumbai, you should be clear with size and rental expense what you can afford.