In Mumbai, a Leave and License Agreement is a document that defines the terms and conditions between a landlord and a tenant for the usage of a rental property. It is a legal agreement that specifies the rights and obligations of both parties during the tenancy period.
When it comes to a Leave and License Agreement in Mumbai, there are several charges that tenants need to be aware of. These charges are typically paid by the tenant and are in addition to the monthly rent. In this article, we`ll explore some of the common Leave and License Agreement charges in Mumbai.
1. Stamp Duty and Registration Charges
Stamp duty and registration charges are mandatory fees that need to be paid to the government during the registration of a Leave and License Agreement. In Mumbai, the stamp duty is 0.25% of the total annual rent, and the registration charge is Rs. 1,000. These charges need to be borne by the tenant.
2. Brokerage Fees
If you have used a broker to find a rental property, you will need to pay brokerage fees. The brokerage fee is typically one month’s rent or a percentage of the total rent for the lease period. In Mumbai, brokerage fees are usually paid by the tenant and can be negotiated with the broker.
3. Maintenance Charges
Maintenance charges are fees that are paid to the landlord for the upkeep and maintenance of the rental property. These charges are typically a fixed amount per month and are paid by the tenant. Maintenance charges cover the cost of common area cleaning, repairs, and maintenance of the building and its amenities.
4. Society Charges
Society charges are fees that are paid to the housing society for various amenities and services. These charges are typically paid by the tenant and cover the cost of services like security, water supply, and electricity for common areas. The amount of society charges varies depending on the society and the location of the rental property.
5. Electricity and Water Charges
In Mumbai, tenants are typically responsible for paying electricity and water charges. The amount of these charges varies depending on the usage and the location of the rental property.
In conclusion, when renting a property in Mumbai, it is important to be aware of the various Leave and License Agreement charges. These charges can significantly increase the total cost of renting a property, so it is essential to factor them into your budget. As a tenant, it is important to negotiate these charges with the landlord to ensure that you are not being overcharged.