While renting a home in Mumbai, a more thoughtful approach is required.
Because good research and planning before renting a home in Mumbai ensure-
- Complete control over the budget and cost management.
- No relocations. Saving important resources – Time, Money, and Energy.
- A perfect location for ease of access to the workplace and essential facilities.
- And you are well prepared for everything – from legalities to the terms and conditions.
To achieve all the points mentioned above, you need to consider a few important things before renting a house in Mumbai.
So, here are the important things you should consider to rent a house in Mumbai.
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Locality Research:
The best locality is one which gives ease of access to essential facilities.
Convenient commute to the workplace, life-essential facilities, and ease of living are the key factors that decide the suitability of the location for renting an apartment in Mumbai.
Therefore, detailed research on locality is the first step that you should consider when looking for a house for rent in Mumbai.
This will help you to understand-
- The livability in the particular area.
- Connectivity to the workplace and other parts of the city.
- Accessibility to the various mediums of transportation from the location.
- Essential services such as water, electricity, and gas supply.
- Quality healthcare services and hospitals in the region.
- Schools, colleges, and educational institutions in the locality.
On the basis of these points, you can shortlist and select the most suitable location to rent an apartment in Mumbai.
A better locality is generally associated with moderate to high rent. So, therefore cost and locality are the two factors that should be considered side by side to rent a house in Mumbai.
Also Check out: Best localities to buy a home in Mumbai
Property Inspection:
The physical inspection of the property prior to moving into a rented house is necessary for two reasons-
You can demand the required changes which otherwise would be delayed or never happen once you move in.
Second, you can quickly compare the rent charged and the actual condition of the rented home. This gives you a clear understanding of whether it is a fair deal or not.
Moreover, The landlord is legally responsible for providing safe and livable conditions to the tenets. And tenants should ensure that “safe and livable conditions are provided”
So, here is the complete checklist for the physical inspection before moving into the rented house:
- The building structures such as ceilings, roofs, walls, stairs, etc are safe and robust.
- Electrical fittings, water connections, ventilation, and elevators work properly
- Check the electrical and fire safety arrangements.
- Ensure stringent security systems are in place such as CCTV surveillance and burglar alarms, etc.
- Cleanliness in the corridors, galleries, and hallways.
Cost:
By knowing the different costs involved in renting a house in Mumbai, you will be better prepared to outline your budget. Moreover, you can find alternative options to save money.
To rent a house in Mumbai, it is not recommended to make the final decision only on the basis of Monthly Rent. There are different costs involved in renting an apartment in Mumbai.
These costs can be categorized as Upfront costs, Recurring Costs, and Hidden Costs. Estimating all these costs before taking a house for rent in Mumbai, gives you better control over the budget.
So let’s understand these costs and effective tips to save them.
Upfront Costs:
Security Deposit:
You need to pay the security deposit to the landlord before moving into the rented house.
How much can you be charged as a security deposit?
According to the new Model Tenancy Act, House Owners are allowed to charge a maximum of two months’ rent as Security Deposits.
In some cases, the landlord can make deductions from the security deposits-
- Terminating Lease Early
- Unpaid Rents
- Non-payment of Electricity Bills, Gas Bills, Water Bills, etc
- Damage To the property
- Misuse of the premises or structural changes without the consent of the landlord.
Also, the landlord is liable to give you the deposits back within 30 days from the tenancy end.
Tips to save Security Deposit Deductions: Bring to notice “Model Tenancy Act” provisions if deposits are high, avoid damages, and ensure timely payment of Rent and Utility Bills.
Brokerage/Commission:
A real estate agent or broker finds a rental house for you and charges you some fees.
There is no fixed rate at which brokerage is charged.
If you are choosing a broker to find a house, It is always recommended to discuss the Brokerage first with the agents.
Tip To Save Brokerage: You can choose a real estate adviser who offers the services with a “No Brokerage Policy”
Moving Cost:
The moving cost should not be overlooked while renting a home in Mumbai. The moving cost includes transportation, hiring manpower, and other miscellaneous costs that occurred during the entire relocation process.
Rental Agreement Fees:
Rent agreement is important as it includes pre-discussed terms and conditions of the rental contract. There is always a processing fee associated with the Rental Agreement.
Remember, this cost is borne entirely by the tenant.
And usually, the Rental Agreement is needed to renew after 11 months.
Recurring Costs:
Monthly Rent:
To rent a flat In Mumbai do the basic research on the rent prices of similar households in the locality. Also, check the price trend over the past few years. This will help you to understand whether you are getting a good deal. And second, you will get a hint of possible Rent escalations in the next few years.
Also, make sure that you manage the budget in such a way that there are no delays in the rent payment. This will help you to keep a good track record and no deductions from the security deposit.
Society Maintenance Charges:
As a tenant, you are liable to pay the fixed maintenance charges set by the society. Make sure that you have considered the monthly maintenance charges in your rental budget.
The important thing here is that society can’t set different maintenance charges for tenants and homeowners.
Utilities:
Mostly the tenants have to pay the electricity, water, and gas bills even though they are by the name of the landlord. In some rare cases, the bills are included in the rent. For clarity on this, read the terms and conditions of the Rental Agreement properly.
Parking Charges:
Parking charges are usually not covered under the maintenance charges. You need to pay separately as per the parking facilities you take.
Amenities Charges:
Sometimes the lifestyle amenities such as Gym, Club House, Children’s Play Area have a fixed monthly cost. In such a case, you can select which amenities you want and calculate the cost accordingly.
Tips To Save Recurring Costs: Keep track of recurring charges, optimize the use of utilities.
Hidden Costs:
The hidden cost or unforeseen expenses have no fixed categories. These expenses could crop up from anywhere. But the most occurring hidden costs are tenant repairs and cleaning costs can be considered as a hidden cost.
Tenant Repairs:
According to the Model Tenancy Act, Tenants are responsible for repairing the kitchen fixtures, sockets, doors, and windows and maintenance of gardens, etc. Whereas the landlord is mainly responsible for the activities such as structural repairs, paintings, plumbings, electrical fittings, etc. By knowing who is responsible for what you can have a rough estimation of a repair cost.
Cleaning Costs:
As a tenant, you are also responsible for cleaning the drains, open areas, and the garden. Cleaning cost is comparatively lower than the other costs in renting a home.
Tips To Save Hidden Costs: Avoid Damages, focus on cost-effective cleaning.
Facilities:
The landlord is obliged to provide basic facilities such as safety & security, and parking, etc.
In safety, the most important arrangements are fire fighting systems such as fire extinguishers, smoke detectors, water sprinkling systems. On the other hand, the security system must include the trained guards, CCTV surveillance, intercom systems, etc.
Also, make sure that there is enough parking space to avoid problems later on. Discussing the parking charges first is necessary.
Amenities:
Should you choose a rental home with a lot of amenities?
The lifestyle amenities are commonly provided with the rented house are Gym, Club House, Children’s Play Area, Swimming pool, Banquet Hall, etc.
The key here is to decide which amenities are necessary and which are not.
If you have a complete family along with the children then opting for Club House, Children’s play area, etc is a good decision.
Usually, the amenities are included in the monthly rent you pay. But there could be cases where separate fees are charged for lifestyle-oriented amenities. So having clear terms and conditions on the amenities in the Rental Agreement is better for you to manage the rental budget.
Rental Agreement:
Why rental agreement is so important to rent a flat in Mumbai?
It has all the terms and conditions mutually agreed upon by both tenant and landlord.
According to the Model Tenancy Act, there should be a written agreement between the tenant and the landlord. This agreement includes:
- Monthly Rent Payment- Amount & Payment Conditions
- Tenancy Time Period
- Security Deposits-with terms and conditions.
- Responsibilities for maintaining the property.
- Lock-In Period
- Agreement Renewal Clause
- Notice Period
- Termination Grounds
- Society Maintenance and Repairs
- Terms and Conditions
In nutshell, Rental Agreement shapes every single factor when it comes to renting a home. Therefore careful consideration of all the terms and conditions mentioned in the agreement is important.
Mainly, Monthly Rent, Tenancy Period, and Security Deposit are the most important among all the factors included in the Rental Agreement.
Summing Up:
