Company Lease or Individual Tenant: Which Is Better for Your Mumbai Flat?

Company leases can bring reliable rent and longer stays, but they come with tighter terms, TDS and more paperwork. How they compare with renting to an individual.

Office buildings at Nariman Point overlooking the sea

In Mumbai, many larger flats in business districts are rented to companies for their employees. A company lease means the company, not the employee, is the licensee and pays the rent.

How they compare

Factor	Company lease	Individual tenant
Who pays	The company	The person
Payment reliability	Usually steady, through accounts payable	Depends on the person
Paperwork	More: company documents, authorised signatory, sometimes vendor registration	Simpler
TDS	Companies usually deduct TDS on rent	Depends on rent level and landlord's status
Terms	Companies may ask for their own clauses, early exit options and furnishing	Standard agreement
Occupant	An employee, who may change	The tenant and family

A company lease trades a little flexibility for a lot of payment certainty. Read the exit clause carefully.

What to check in a company lease

Who signs: an authorised signatory with a board resolution or authority letter.
Who lives there: the employee's details for society records and police intimation.
Exit and lock-in: companies often want an early exit clause. Balance it with a lock-in and notice period.
TDS: make sure the company deducts and deposits TDS correctly and issues certificates. For NRI landlords, the rate and process differ. See TDS on rent to an NRI landlord.
GST: residential renting is generally exempt, but rules for renting to registered businesses have changed in recent years. Ask your CA. See GST and TDS for landlords.
Furnishing and maintenance: who pays for what.

When an individual tenant is better

Smaller flats in residential neighbourhoods.
Owners who want a simple agreement and a known occupant.
Families planning to stay several years.

Frequently asked questions

Do companies deduct TDS on rent?

Usually yes, under the TDS rules for rent. The rate depends on the landlord's residency and the rent amount. Check your Form 168 (formerly 26AS) to confirm it's credited.

Is a company lease safer?

Payment is often more predictable, but read the exit clause, lock-in and occupant details carefully.

Related reading

Want help placing a company tenant? Book a video call.

General information, not legal or tax advice.

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