Report Wire - How covid helped Mumbai couple to hire dream dwelling
December 3, 2022

Report Wire

News at Another Perspective

How covid helped Mumbai couple to hire dream dwelling

7 min read
Nitin Singh Bundela and Nitya Singh.

The condominium’s largest draw was that it was newly-built and had a swanky kitchen. “It has a modular and really spacious kitchen. It’s arduous to seek out such an condominium in Mumbai,” she said. “Since the apartment was newly built, it looked pretty and clean. Setting up things in a new house is exciting and easier, compared to a house that has been used before,” she mentioned.

And to have gotten all this on the hire they’re presently paying was a bonus, Nitya added. “I used to be paying the identical hire for a 100 sq ft smaller flat in Andheri West. It had a stupendous view from the thirteenth flooring, was nearer to the metro and the locality was higher, however I don’t thoughts buying and selling all that for a brand new, cleaner and greater condominium at such an affordable hire.”

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Nitya Singh, 31, has been living in rented houses in Mumbai for seven years now. Her current 2-bhk, an 860 sq.ft apartment in Andheri East, is the biggest one she has occupied so far. Nitya moved into this apartment in April with her husband Nitin Singh Bundela soon after their wedding. “We  landed a rather sweet deal and rented it for ₹40,000. This happened because of the pandemic as rents were lower as people working remotely had still not returned to the city. Post-pandemic, rents have surged and this very apartment now commands a monthly rent of  ₹50,000-55,000,” she mentioned.

The condominium’s largest draw was that it was newly-built and had a swanky kitchen. “It has a modular and really spacious kitchen. It’s arduous to seek out such an condominium in Mumbai,” she said. “Since the apartment was newly built, it looked pretty and clean. Setting up things in a new house is exciting and easier, compared to a house that has been used before,” she mentioned. 

And to have gotten all this on the hire they’re presently paying was a bonus, Nitya added. “I used to be paying the identical hire for a 100 sq ft smaller flat in Andheri West. It had a stupendous view from the thirteenth flooring, was nearer to the metro and the locality was higher, however I don’t thoughts buying and selling all that for a brand new, cleaner and greater condominium at such an affordable hire.” 

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In the previous, Nitya has rented 600 sq ft and 750 sq ft flats for month-to-month rents of ₹40,000 and ₹45,000, respectively, in localities comparable to Andheri West and Versova. To put the costly rental market of Mumbai in perspective, a 800-900 sq ft condominium in Delhi situated in the same neighbourhood would simply price ₹20,000-25,000.

Nitya has modified 4 flats up to now. “I desire renting homes in areas near my workplace and the metro. Commuting in Mumbai could be very time-taking and taxing,” said Nitya, a tech professional working in a finance company. In fact, both Nitya and Nitin give preference to the convenience of short-distance commutes and proximity to friends and family even if it means shelling out extra on rent. “I spend nearly 40% of my income on rent,” mentioned Nitin.

Prior to his marriage, Nitin too had rented homes in Bandra West and Khar, each upscale residential localities in Mumbai, to be nearer to his office. “Both the flats had been fairly costly however I saved on my day by day work commute and since all cafes, eating places and celebration golf equipment are in these areas I didn’t need to journey anyplace else within the metropolis.”

Renting decisions in Mumbai boils down to picking between renting in suburbs, such as Borivali, Chembur, Malad, Mira Road, Vikhroli, and Kandivali, for lower rents or saving on commute by living in the city and paying higher rentals. 

On being asked whether they plan to buy a house in Mumbai, Nitya said remote work opportunities opened up by the pandemic has changed her perspective. “Nitin works remotely and I, being in the tech sector, can also get that option in the future. So, seeing how expensive real estate is in Mumbai, we’d rather invest that money in buying a house in a tier-2 city,” she mentioned.

Cost of renting

Security deposit in Mumbai is equal to 4-5 months’ of hire, which simply runs into six-digit as the typical hire in Mumbai is kind of excessive. The couple paid a safety deposit of ₹1.5 lakh. 

Landlords deduct as much as 5% of the safety deposit in the direction of repairs (wall fixtures, fittings) whereas the remaining cash is returned on vacating the home, if there are not any main damages. Though that is the final follow, it’s suggested that one checks their rental settlement for extra clauses.  Nitin needed to forgo almost ₹15,000 from his safety deposit in 2013 in the direction of dwelling portray although he had occupied the condominium for lower than a yr. “It was included within the settlement however I didn’t verify it earlier than shifting in.”

As for maintenance, regular repairs towards general wear and tear is borne by the tenant, whereas structural repairs are borne by the landlord. “My current apartment is new, so the landlord has agreed to pay for all repairs and fixtures for one year as you can’t anticipate how fixtures would turn out in a new apartment,” mentioned Nitya. 

Society upkeep expenses in Mumbai are usually borne by the owner. “I discovered this stunning as a result of my sister in Bengaluru has to pay for it herself,” said Nitya. However, this may not be the case with every landlord and should be discussed beforehand.

Nitya found this house through NoBroker. After having gone through brokers and online platforms in her search for the dream house, Nitya prefers the latter. “I find the process with brokers lengthy. You need to repeatedly explain your requirements in great detail and then visit each property they suggest. Online is just easier with all property details and pictures in one place,” she mentioned. Also, one will get to save lots of on brokerage, which is the same as one month hire, going by way of these platforms. 

In Mumbai, tenants need to pay brokerage yearly. So, avoiding a dealer can prevent on this extra annual price. 

Nitin mentioned your hire finances goes up if you’re not paying the annual brokerage . “If you save ₹40,000-45,000 on dealer’s price yearly, you’ll be able to add that further ₹3,000-4,000 to your month-to-month hire. This occurred to me after I’d rented a home in Khar by way of Housing.com. I may afford to hire a costlier condominium due to the extra financial savings on brokerage.”

Leave and licence

Renting in Mumbai is bound by a leave and licence agreement. It follows the same format as that of a rent agreement–tenancy is fixed for 11 months that is to be renewed every year; it has details of rent and security deposit and terms and conditions on lock-in, if any, rent revision, notice period before vacating the property and maintenance costs are specified. But the key difference between a leave and licence agreement and a rent agreement is that the former has to be mandatorily registered. 

“In Maharashtra, it is mandatory for a leave and licence agreement to be registered, which may differ from that in states like Delhi where an 11-month agreement need not be registered. Leave and Licence Agreement is governed by Indian Easement Act, 1882,” mentioned Anshul Gupta, managing associate, ANG Partners Advocates & Solicitors.

In different states, the final follow is to get an 11-month notarized settlement on a stamp paper of minimal worth of ₹50 or ₹100. This technique prices about ₹1,500-2,500, whereas registering an settlement prices extra. Since a Leave and License Agreement must be registered, it’s a further price that tenants in Mumbai need to bear. 

Gupta mentioned the price of using a Leave and Licence Agreement could be divided into two components–lawyer’s charges and the stamp responsibility. 

“A lawyer’s price ranges between ₹3,000 and ₹7,000, which can or could not embrace the registration charges.” The registration fee in Maharashtra is ₹1,000 for property located under municipal corporation and ₹500 for properties under rural area.

Stamp duty, governed by the Bombay Stamp Act 1958, is arrived at depending on the rent, duration, advance rent and security deposit. 

Gupta said: “The stamp duty is 0.25% of the total amount arrived through the following formulae: (monthly rent) * (no. of months) = x; advance rent paid, if any = y; and (10% of the refundable security deposit) * (no. of months for which the agreement is made) = z. Total sum (S) = x+y+z. Stamp duty is 0.25% of S.” The registration could be finished both by bodily visiting the sub-registrar’s workplace or on-line on the web site of the Department of Registration & Stamps. 

Nitya and Nitin registered their present settlement on-line by way of a hire settlement registration service platform known as ezeeagreements, which expenses a service price of about ₹1,000.

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