Housing Rentals or Renting Commercial Space In India

Leave & License rules over the past few years have become simpler and the laws have become a bit tighter favouring the property owners. One has to mandatory register the leave & license agreement and pay appropriate stamp duty. One can enter into an agreement from 12 to 60 Months now without having the worry to terminate or renew the lease every year or so as earlier. A little upward correction in the lease rental market has happened in locations like Bandra, Worli, Hiranandani Gardens, Powai and Prabhadevi where the real estate market has touched a new high and the demand has outstripped the supply in certain premium segments. In this scenario a lot of apartment owners have asked their present tenants to vacate as they are getting better offers for their apartment.

There is no set thumb rule in Mumbai for calculation of the Security Deposit and License Fees (rent) any more. Each Company or an Individual owner structures the transaction to his convenience. A few companies like the FMCG companies, Banks etc. can pay Higher Deposits and Lower Rents. A lot of new companies prefer to pay lower deposit and higher rent which is even good for the owners at times as they get a clean monthly cheque after the TDS deduction. Moreover, after the introduction of FBT (Fringe Benefit Tax) more and more executives from Companies prefer to take apartments on Individual Lease basis.

This is pretty safe now and a lot of apartment owners still are worried on getting their apartments back in a good shape. The idea is to deal with a salaried employed person or with some one with a family and a little check on his back ground may be helpful.

In this boom increasing number of NRI’s, HNI’s and other Investors have bought real estate to capitalize on 2 accounts, one being the capital value appreciation and another being the rental returns. Even if one has taken a home loan of about 70%+ of the property value it can be repaid back most of the time in good properties by way of rent receivables. For example the lease rental returns are around 6% and you have taken a home loan at 7.5 to 8%. Most of the suburban areas are potential lease markets, but the once which dominate are Andheri West, Andheri East, Powai, Juhu – Bandra belt, Malad both east and west, Goregaon east etc. Most of these areas have good connectivity to CBD’s (Central Business Districts) like Andheri East, Santacruz East, and Bandra Kurla Complex etc. The east west commute definitely becomes a pain at times for daily commuting but one has to live with the basic rule of relocation which is Kids First, Wife Second and Husband Third. Keeping that in mind the areas where there is basic infrastructure is developed with easy school admissions, clean surroundings, infrastructure etc.

(Source: india-news.in)