Many say Mumbai is a sell rather than a buy, when it comes to property. With the right technique of property investment, you can soon buy a house of your dreams in this financial capital of the country. Buying a property in Mumbai is a tedious job, and involves lot of research, time and patience. But be assured that it is a good investment. Your buying decision also depends a lot on the area you look for.
To buy a home in Malad, Goregaon or Kandivali would be expensive than Thane, Ghatkopar or Mulund. Moreover, there are major property rate differences within the specific regions itself. So when you buy a home in Malad, it will cost you a little more in Goregaon and Kandivali would be two times lesser in cost. So choose wisely. On the other hand, some find a midway by renting a flat in Mumbai, to meet other expenses of their day to day life. This article will shed some light on important renting agreements and paper work involved in home renting in Mumbai. Here’s a quick checklist:
- Rent tenure
- Rent amount
- Security amount
- Rent payment date
- Any panel payment if rent is late
- Facilities for tenant
- Rent escalation clause
- Renewal terms after the contract expires
- Rent escalation clause
As a tenant, you should confirm that the rent will not be increased after a certain period, which is called the rent escalation clause. A rental/lease agreement is a legal document which mentions rental rules and the deal by the owner that is to be followed by the tenant. Usually this is prepared by an estate agent hired by you or the landlord. To validate this lease agreement, all you need is two non-beneficiaries in presence of whom both the parties will sign the agreement. In major cases, your estate agent or broker itself will be your witness.
A lease or rent agreement typically includes all the terms and conditions, rent duration, deposit amount and other details of this deal. Obtain a copy of this contract before signing it. Read everything carefully. Once you meet your landlord again for signing the document, go through it once again to check that it’s the same document which you got a copy of. Another important point is to make sure that the person you’re dealing with is the actual owner of the site. When in doubt, ask them to show their property papers , which is well within your rights. Obtain the latest copy of electricity, gas and phone bill to make sure you don’t have to pay any pending amount.
Generally the rent agreement is of 11 months, because if it exceeds a year, then the owner has to register the rent agreement by paying a stamp duty. So if you are going to stay somewhere more than 11 months, then ensure that your rent agreement is registered by your landlord to avoid future problems. Make sure that you particularly check the deposit amount correctly mentioned in the agreement and all the dates of paying rent, and late fees.
Check for other clauses such as who will take care of all the repairs during the lease period and if the owner decides to sell the house then what would be the minimum notice period given. Check other details like parking charges, maintenance charges, and other charges that the society needs to be paid for. If either party fails to follow the terms and conditions of the lease agreement, it will become invalid and the other party can claim penal charges on the failing party. Hence, your agreement should also include cancellation charges, notice period and penalty charges for any such cancellation of the agreement without the completion of the entire specified period.
It is always advisable to hire a trusted broker or estate agent who will take you through all the legal process and save you from the trouble.
Kristine Smith has been a property consultant since a decade in Mumbai and has advised people the best properties of Mumbai. She has been a property analyst as well and writes for leading dailies time and again, sharing her suggestions to buy home in Malad, Borivali and developing areas of Kandivali.