When it comes to renting in Mumbai, contracts can be complicated, rents are at a premium, and deposits are unreasonably high. In spite of all this, renting is by far the most popular route expats choose to establish long-term accommodation.
Finding an Apartment
Most expats use a real estate agent to help them find a home. The process typically goes as follows:
- Enlist a real estate agent and tell him your requirements.
- The real estate agent compiles a list of apartments for you and contacts you for a viewing date.
- The agent picks you up in his car and takes you to see the apartments on the list.
- When you want to make an offer, the agent relays your offer to the landlord and helps with negotiations.
- Once an agreement is settled on, the agent works with the landlord to draw up a lease contract. Make sure your input is included. This step can take about a week.
- Read the submitted lease contract, and, if agreeable, provide all required documents and sign lease contract.
Leases
Leases in Mumbai are similar to leases elsewhere and are called “Leave and License” agreements. Leases are usually for one or two years (the maximum is 5 years) with the option to renew. The lease can either be signed by you or by your company. Exit clauses should be a part of the lease from both ends and should be agreed upon by both the landlord and the tenant. A special exit clause to allow the tenant to vacate due to “acts of God” is recommended.
Documents
- Passport
- Signed “Leave and Lease agreement”
- Work contract – to prove employment
- Several passport sized photos
- Foreigner’s Registration booklet
- References might be requested
Price
Rent for Mumbai expats ranks as the sixth most expensive in the world.* In general, accommodation in town, or in southern Mumbai, is pricier than accommodation in the suburbs, the area stretching from Bandra up to Malad.
Below are monthly rent estimates for semi-furnished, expat quality apartments. Don’t forget to bargain, though!
South Mumbai
- 1 Bedroom apartment: Rs. 50,000 to Rs. 100,000
- 2 Bedrooms apartment: Rs. 125,000 to Rs. 300,000
- 3 Bedrooms apartment: Rs. 200,000 to Rs. 450,000
- 4 Bedrooms apartment: Rs. 250,000 to Rs. 650,000
- 5 Bedrooms apartment (or Bungalow) Rs. 350,000 to Rs. 12,00,000
Northern Mumbai
- 1 Bedroom apartment: Rs. 50,000 to Rs. 100,000
- 2 Bedrooms apartment: Rs. 75,000 to Rs. 225,000
- 3 Bedrooms apartment: Rs. 100,000 to Rs. 450,000
- 4 Bedrooms apartment: Rs. 200,000 to Rs. 600,000
- 5 Bedrooms apartment (or Bungalow) Rs. 300,000 to Rs. 8,00,000
The website “Real Estate Mumbai” has a comprehensive list of price breakdowns by neighborhood: http://www.realestatemumbai.com/
Up Front Costs
If the price for monthly rent shocked you, prepare yourself for jaw-dropping up front costs. Mumbai landlords often request steep security deposits, anywhere from 20-40% of the capital value of the property. You will get your security deposit back, of course, but note that the landlord will retain all interest gained.
Some landlords ask that the entire rental amount – yes, that is one or two years of rent – be paid when you sign on the dotted line. In this case, the security deposit should be considerably lower.
If you or your company can’t fork over so many rupees at the outset, your landlord might lower the deposit or advance payment in exchange for upping the monthly rent. There are no fixed rules about deposits, which means you can negotiate different terms.
It is possible to negotiate the up front costs, with some landlords accepting a three months deposit. It depends on how well you bargain and how eager the landlord is to rent out the apartment.
Utilities
In most rental agreements, the tenant covers all costs for utilities and TV, internet, and telephone services. However, it is possible to include certain bills – TV bills, for example – in the rent itself. You can work out a deal with your landlord if that appeals to you.
Repairs and Maintenance
By and large, the tenant is responsible for covering all minor repairs and maintenance, but it is negotiable. Considering how often things break down in Mumbai, it is wise to ask about the landlord covering at least some of the minor repair costs, so bring it up when you are arranging contract terms. Major repairs should definitely be covered by your landlord – be sure that is stated clearly in the contract.
* According to a 2010 ranking by Eurocost.
