Everything a tenant in Mumbai needs to know
Renting a flat in Mumbai involves a formal Leave and Licence agreement, a security deposit, and a set of rights and responsibilities for both landlord and tenant. This guide explains everything clearly — whether you are renting for the first time or moving to a new property.
The rental agreement (Leave and Licence)
In Mumbai, residential rentals are governed by a Leave and Licence Agreement (not a Tenancy Agreement). This is important because a Leave and Licence does not give you occupancy rights — it gives you a licence to use the property, which the licensor (owner) can revoke after the agreed period.
Duration
Typically 11 months (to avoid stamp duty on agreements over 12 months). Renewed annually.
Stamp Duty
Paid by the tenant. Calculated on the average monthly rent × months + refundable deposit × 10% × years.
Registration
Mandatory for agreements over 12 months. TND strongly recommends registering all agreements regardless of duration.
Notarisation
Not a substitute for registration. A notarised-only agreement has limited legal standing in court.
Security deposit in Mumbai
- Typically 2–3 months’ rent for most residential properties
- Premium and luxury properties: up to 6 months’ rent
- The deposit is refundable at end of tenancy, less any deductions for damages beyond normal wear and tear
- TND’s two-stage inspection documents the property condition photographically, protecting both tenant and owner from deposit disputes
Notice period
- Standard notice period: 1 month (as specified in the agreement)
- Either party can give notice — tenant to vacate, or licensor to reclaim property
- Always give notice in writing (WhatsApp message with confirmation is acceptable)
- Lock-in period: many agreements have a 6-month or 11-month lock-in — check yours
Rent escalation
Most Mumbai rental agreements include an annual escalation clause of 5%–10% on renewal. This should be clearly stated in your agreement. TND manages all escalation communications on behalf of our landlords, giving tenants adequate notice before any rent increase.
Your rights as a tenant in Mumbai
- Right to peaceful enjoyment of the property during the licence period
- Right to a receipt for every rent payment
- Right to proper notice before the owner enters the property
- Right to have major repairs done by the owner within a reasonable time
- Right to your full security deposit back, less only documented and justified deductions
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