What is a Heavy deposit?
Heavy deposits, also called zero-rental flats, are becoming popular in the real estate market. The heavy deposit is an agreement between the owner and tenants where the owner provides the expected property to the tenant in exchange for a hefty security deposit for a period of time.
These days, a growing trend in Mumbai that is spreading to Vasi-Virar, Mira Road, and other city areas is heavy deposits or zero rental flats or apartments.
How Heavy Deposit Varies from General Renting?
Those who rent properties typically pay both the flat security deposit and their rent monthly. Residents of the heavy-deposit apartments do not make monthly rents or security deposits. Instead, they pay a large sum to the owner as a security deposit for the property based on the property’s location during the tenancy period.
Furthermore, the owner will return the tenant’s security deposit when the tenancy finishes.
If the rental agreement allows it, the landlord may withhold payment in the event of property damage or unpaid utility bills.
Heavy Deposit System In Mumbai
The zero-rent option is becoming more and more appealing to Mumbai renters, particularly millennials with transferable employment. To be clear, a rental flat plan permits tenants to reside in an apartment during their rental period without having to pay rent.
According to information provided by Mr. Tauqeer Hashmi, the owner of Maharastra Properties In Mumbai, almost a third of people who seek rental homes are prepared to put down a sizable deposit in order to reduce their monthly rent costs. It usually costs 100 times what the rent is per month. for a flat being offered at Rs.10,000 per month, for instance, a sizable deposit of Rs. 10 Lakhs would be required.
Advantages of Heavy Deposit Flat in Mumbai
The zero-rental flat system is beneficial for both the landlords and the tenants. They provide great opportunities for renters to lower their monthly rent costs, particularly in areas with excessively high rents like Mumbai. If the flat is maintained the tenant gets their whole security deposit back.
On the other hand, the Owner gets a huge amount of money at one time which can be invested in other ways. In the normal renting process, paying electricity bills, and water bills can be a bit problematic, especially in the last month of the tenancy. Also, if every tenant vacates the property, the landlord must spend a lot of money on repairs since new renters demand that the property get little maintenance. A deposit of Rs 30,000 or 40,000 won’t be helpful for the maintenance. At these times the owner can use the security deposits given by the tenants.
For quite a good time the trend of heavy deposits or zero-rental is there in Mumbai as it is a win-win system for both the rentals as well the owner. Additionally, the owner already has a hefty amount on his/her hand, they can use it somewhere else, and can invest it in the real estate sector only by investing the amount to buy a new property. In Mumbai, this system is well known and with the passing of time, it is already spreading the other regions of Mumbai, like Mulund, Chandivali, Bandra, Goregaon, Malad, and Andheri East.
Tips to Rent Heavy Deposit Flat In Mumbai
In a city like Mumbai, it’s simple to find heavy-deposit apartments or zero apartments, but choosing one can be challenging. To help you all find your ideal home, here are some tips.
- The first step is research, which is simple and clear but important. Researching every neighborhood in the area will help you to understand and identify the best place to live with all the amenities you require.
- The next step is to determine which amenities, such as an air conditioner, a fully equipped kitchen, and a house that includes water and electricity as part of the rent, you need in your flat.
- Before signing a lease, make sure to inspect the property to determine its quality. Checking to see if the amenities are operating properly will be a smart idea. Before making a choice, look through the security features like locks and cameras.
- Make as many contacts with agents as possible, and keep a list of those who can give you a rough notion of how to achieve your goals.
- While checking on the heavy deposit flat agents in Mumbai, ask about the past clients of the property you are interested in, and ask about the society and the locality, Depending on the time you can also meet the agent to get a rough idea of the area you are interested in.
- Ask the heavy deposit flat agents in Mumbai about the previous tenants of the home you are interested in, as well as about the neighborhood and society. You may also meet the agent to get a general sense of the neighborhood you are interested in.
It can take some time to find the ideal heavy deposit flat in Mumbai, but with little preparation and research, it is possible! You will find your dream home quickly if you use the advice in this article.
Documents Required to Rent A Heavy Deposit Flat
Don’t forget to have this paperwork available for the next step once your extensive study has led you to find your perfect heavy deposit flat in Mumbai.
- Tenant Identification: First thing you need is your identification cards which can be any of these Voter ID cards. Aadhar card, PAN card, or your driver’s license.
- Rental Agreement: It’s essential to specify in the rental agreement what costs will be paid and by when. To avoid paying taxes or stamp duty, a would normally be for 11 months.
- No Objection Certificate (NOC): This is a letter of consent from the landlord confirming that they do not object to you renting their property for a heavy deposit flat in Mumbai. Confirming that both parties concur on every aspect of the rental agreement, serves to safeguard both parties from being taken advantage of.
- Security Deposit Receipt: These are essential documents that might assist avoid disagreements later on about security deposits. The Receipts should clearly state how much money is being deposited and when it can, if necessary, be retrieved by either party.
Hence, before signing up for a heavy deposit flat in Mumbai, make sure you have all the necessary documents ready! Afterward, you’ll appreciate yourself.
A Final Piece Of Advice
A final piece of advice. Make sure you familiarize yourself with everything the city has to offer before accepting a heavy deposit flat in Mumbai. Several structures in the city have different features that increase their appeal and worth, such as particular artwork, specialized furniture, or exclusive services.
Conduct thorough research on the area you are moving to, including information on maintenance services and amenities like gardens, swimming pools, gyms, and any specialized security measures.