Delhi Rental Yield Demystified: How to Calculate and Boost Your Returns

Exploring Rental Yield in Mumbai’s Property Market

Investing in real estate is a cornerstone of wealth building, and Mumbai, with its bustling economy and soaring property prices, presents both challenges and opportunities for investors. Rental yield in Mumbai is a very important metric when it comes to investing in the bustling metropolis. Let’s find out what is the rental yield in Mumbai and how this metric impacts real estate decisions in the city.

What is Meant by Rental Yield in Mumbai?

Before diving into Mumbai’s rental market, let’s establish a foundational understanding of rental yield. Simply put, rental yield is a measure of the return on investment generated by a property through rental income, expressed as a percentage of its purchase price. It provides insight into the income potential of a property relative to its cost, making it a crucial metric for assessing investment viability.

Rental Yield = (Annual Rental Income / Property Value) x 100

The Mumbai Real Estate Rental Trends

In recent years, Mumbai’s rental market has witnessed a nuanced interplay of demand and supply dynamics, resulting in varied trends across different segments. Here are some notable trends:

• Micro-markets: While traditionally sought-after areas like South Mumbai and Bandra continue to command premium rents, emerging micro-markets in suburban areas such as Andheri, Thane, and Navi Mumbai are gaining traction among tenants seeking affordability without compromising on connectivity and amenities.
• Affordability Concerns: High property prices coupled with stagnant rental growth in certain areas have led to affordability concerns for tenants. Landlords may need to recalibrate rental expectations and offer competitive rates to attract and retain tenants in a competitive market.
• Shift towards Co-living Spaces: The rise of co-living spaces, driven by millennials and young professionals seeking community living experiences, is reshaping Mumbai’s rental landscape. These shared accommodations offer a blend of affordability, convenience, and social connectivity, catering to a niche yet growing segment of the rental market
• Employment Opportunities: Mumbai’s status as the commercial capital of India continues to drive demand for rental properties, particularly in proximity to business districts and employment hubs. The influx of professionals seeking career opportunities in sectors such as finance, IT, and entertainment fuels rental demand in these areas.
• Remote Work Culture: The global shift towards remote work in response to the COVID-19 pandemic has had ripple effects on Mumbai’s rental market. While some tenants seek flexible arrangements and larger living spaces to accommodate remote work setups, others explore suburban options offering a quieter and more spacious environment conducive to remote work-life balance.

Average Rental Yields in Mumbai for Different Localities

While premium locations may offer prestige and long-term appreciation potential, investors should carefully assess rental yields about property prices and market dynamics to ensure a balanced investment portfolio. By leveraging insights into rental yields and market trends, investors can navigate Mumbai’s real estate landscape effectively and unlock opportunities for wealth creation and financial growth.

Locality	Average Rental Yield Range
South Mumbai	2% – 3%
Bandra	3% – 5%
Andheri	4% – 5%
Thane	5% – 6%
Navi Mumbai	4% – 7%
Malabar Hill	2% – 3%
Colaba	2% – 3%
Cuffe Parade	2% – 3%
Worli	3% – 4%
Lower Parel	3% – 4%
Powai	4% – 5%
Goregaon	4% – 5%
Kandivali	4% – 5%
Borivali	4% – 5%
Chembur	4% – 5%
Vashi	4% – 5%
Nerul	4% – 5%
Kharghar	5% – 7%
Panvel	5% – 7%
Santacruz	3% – 4%
Juhu	3% – 4%
Versova	4% – 5%
Dadar	3% – 4%
Bhandup	4% – 5%
Mulund	4% – 5%
Matunga	3% – 4%
Mahim	3% – 4%
Marine Lines	2% – 3%
Byculla	3% – 4%
Wadala	3% – 4%
Seawoods	4% – 5%
Belapur	4% – 5%
Airoli	4% – 5%
Dombivli	5% – 6%
Ambernath	5% – 6%
Kalyan	5% – 6%
Ulhasnagar	5% – 6%
Virar	5% – 6%

Please note that these figures are approximate and may vary based on specific sub-localities, property types, and market conditions. Contact NoBroker for the most accurate data.

Comparing Mumbai’s Rental Yield With Other Major Indian Cities

Comparing Mumbai’s rental yield with other major Indian cities provides valuable insights into the relative attractiveness of property investments across different urban centres. Let’s explore how Mumbai’s rental yield stacks up against some of India’s other prominent cities:

City	Average Rental Yield Range
Mumbai	2% – 3%
Bangalore	3% – 6%
Delhi-NCR	2% – 4%
Pune	3% – 5%
Chennai	3% – 5%
Hyderabad	3% – 5%
Kolkata	3% – 5%
Ahmedabad	4% – 6%
Gurugram	3% – 5%
Jaipur	3% – 5%
Chandigarh	3% – 5%
Kochi	3% – 5%
Lucknow	3% – 5%
Bhubaneswar	3% – 5%
Coimbatore	3% – 5%
Visakhapatnam	3% – 5%
Nagpur	3% – 5%
Surat	4% – 6%
Udaipur	3% – 5%
Varanasi	3% – 5%
Mysore	3% – 5%
Patna	3% – 5%
Guwahati	3% – 5%
Ranchi	3% – 5%
Vijayawada	3% – 5%
Bhopal	3% – 5%
Indore	3% – 5%
Dehradun	3% – 5%
Jamshedpur	3% – 5%

Please note that these ranges are approximate and can vary based on factors such as property type, location within the city, property condition, and prevailing market conditions. Conducting thorough research and seeking NoBroker’s professional advice is advisable before making investment decisions in any specific city.

Factors Impacting Rental Yield in Mumbai

Several factors influence rental yield in Mumbai, shaping the profitability and attractiveness of property investments. Here are some key factors impacting rental yield in Mumbai:

1. Location: Location is paramount in determining rental yield. Properties situated in prime locations such as South Mumbai or Bandra typically command higher rents and, consequently, higher rental yields compared to properties in suburban or less-desirable areas. Proximity to business districts, educational institutions, transportation hubs, and lifestyle amenities significantly influences rental demand and yield.
2. Property Type and Size: The type and size of the property play a crucial role in determining rental yield. Apartments, especially those in high-rise buildings with modern amenities, often yield higher rental returns compared to standalone houses or older properties. Additionally, larger properties tend to command higher rents, thus potentially increasing rental yield.
3. Property Condition: The condition of the property directly impacts its rental value and, subsequently, its yield. Well-maintained properties with modern fixtures and amenities generally attract higher rents and yield better returns for investors. Regular maintenance and periodic upgrades can enhance the property’s appeal to tenants and contribute to higher rental yield.
4. Market Demand and Supply: Rental yield in Mumbai is influenced by the balance between rental demand and supply. A high demand for rental properties relative to supply can drive up rents, resulting in higher rental yields for landlords. Conversely, an oversupply of rental units or economic downturns may exert downward pressure on rents and rental yields.
5. Economic Factors: Mumbai’s rental market is closely linked to economic indicators such as GDP growth, employment rates, and income levels. Economic prosperity and job opportunities attract migrants and drive rental demand, supporting higher rental yields. Conversely, economic uncertainties or downturns may dampen rental demand and yield.
6. Regulatory Environment: The regulatory landscape, including rent control laws, tenancy regulations, and property taxation policies, can impact rental yield in Mumbai. Changes in regulations or government policies may affect landlords’ ability to set rents and manage expenses, thereby influencing rental yields.
7. Infrastructure Development: Infrastructure projects such as metro expansions, road improvements, and commercial developments can have a significant impact on rental yield. Improved connectivity and access to amenities in emerging neighbourhoods may attract tenants and drive rental demand, leading to higher rental yields.
8. Tenant Profile: The profile of tenants, including their income levels, preferences, and lifestyle choices, can influence rental yields. Properties catering to high-income professionals or expatriates may command premium rents and yield higher returns for landlords compared to properties targeting lower-income segments.

Maximising Your Rental Yield in Mumbai

Maximising rental yield in Mumbai requires a strategic approach and careful consideration of various factors to optimise returns on your property investment. Here are some key strategies to enhance rental yield in Mumbai:

1. Choose the Right Location: Selecting a property in a desirable location is crucial for maximising rental yield. Focus on areas with high demand from tenants, such as proximity to business districts, educational institutions, transportation hubs, and commercial centres. Prime locations like South Mumbai or Bandra typically command higher rents and offer better rental yields.
2. Invest in Well-Maintained Properties: Properties that are well-maintained and equipped with modern amenities are more appealing to tenants, allowing you to command higher rents and achieve better rental yields. Regular maintenance, upgrades, and improvements can enhance the property’s value and attractiveness, thereby increasing rental income.
3. Optimise Property Utilisation: Explore ways to maximise the utilisation of your property to increase rental income. Consider options such as converting unused spaces into additional rental units, offering furnished or serviced apartments, or catering to niche markets such as co-living or corporate rentals to diversify income streams and boost rental yield.
4. Stay Competitive with Rental Rates: Conduct thorough market research to understand prevailing rental rates in your area and set competitive rental prices for your property. While it’s essential to maximise rental income, setting excessively high rents may deter potential tenants and lead to longer vacancies, ultimately impacting rental yield negatively.
5. Minimise Vacancy Periods: Minimising vacancy periods is crucial for maximising rental yield. Implement proactive marketing strategies to attract and retain tenants, such as leveraging online rental platforms, advertising on social media, and offering incentives like flexible lease terms or rent concessions to reduce vacancy risk and maintain consistent rental income.
6. Offer Value-Added Services: Consider offering value-added services or amenities to differentiate your property and attract tenants willing to pay higher rents. This may include services like housekeeping, concierge services, gym facilities, parking spaces, or community amenities that enhance the overall living experience and justify higher rental rates.
7. Negotiate Favourable Lease Terms: Negotiate lease agreements with favourable terms that protect your interests and maximise rental income. Consider clauses such as annual rent escalations linked to inflation, security deposits, maintenance responsibilities, and tenant obligations to ensure a mutually beneficial arrangement that safeguards rental yield.
8. Stay Informed about Market Trends: Keep abreast of market trends, economic indicators, and regulatory developments that may impact the rental market in Mumbai. Understanding market dynamics allows you to anticipate changes, adapt your rental strategy accordingly, and make informed decisions to maximise rental yield and mitigate risks.

Invest in Best Rental Yield Properties in Mumbai with NoBroker

Investing in rental properties in Mumbai presents a lucrative opportunity for those seeking to maximise their rental yield and build a strong real estate portfolio. With Mumbai’s dynamic property market and diverse neighbourhoods, finding the right investment can seem daunting. However, with platforms like NoBroker, investors can navigate this landscape with ease.

By utilising NoBroker’s comprehensive database and advanced analytics, investors can identify properties with the best rental yield in Mumbai. This allows for informed decision-making, ensuring that each investment maximises its income potential. With NoBroker, investors can confidently invest in Mumbai’s real estate market, knowing they are making sound financial decisions that will yield consistent returns over time.

NoBroker not only simplifies the investment process but also eliminates unnecessary intermediaries, saving investors time and money. Whether you’re a seasoned investor or a first-time buyer, NoBroker provides the tools and resources needed to succeed in Mumbai’s competitive rental market.

So, if you’re looking to invest in rental properties in Mumbai and maximise your rental yield, look no further than NoBroker. With their platform, you can discover the best investment opportunities that align with your financial goals and set yourself up for long-term success in Mumbai’s bustling real estate market.

Frequently Asked Questions

Rental Yield in Bangalore’s Real Estate Market: Unlock Max Potential

Rental yield in Bangalore, a critical metric for property investors, holds immense significance in the city’s dynamic real estate landscape. As India’s Silicon Valley, Bangalore boasts a thriving rental market driven by its burgeoning IT sector, vibrant cultural scene, and growing population. In this blog, we embark on a journey to unravel the nuances of rental yield in Bangalore, exploring its calculation methods, influencing factors, and strategies for maximisation.

Understanding Rental Yield in Bangalore

Rental yield, expressed as a percentage, represents the annual rental income generated from a property relative to its market value. In Bangalore, where rental properties are in high demand, understanding rental yield is essential for investors seeking to optimise returns. The city’s diverse neighbourhoods, ranging from bustling tech hubs to serene residential enclaves, each offer unique rental yield dynamics influenced by factors such as location, property type, and market trends.

Rental Yield = (Annual Rental Income / Property Value) x 100

Current Rental Market Landscape in Bangalore

The trends reflect a dynamic mix of high demand, rising rents, and pockets of affordability, presenting both challenges and opportunities for investors and tenants alike.

• High Demand

The continued expansion of the IT/ITeS sector in Bangalore serves as a primary driver of demand for rental properties, particularly in areas proximate to tech hubs such as Electronic City, Whitefield, and Outer Ring Road. The resurgence in demand observed in Q1 2023, following a brief downturn, underscores the city’s resilience and attractiveness to renters.

• Rising Rents

Rental prices in Bangalore have experienced a notable upward trajectory, outpacing those of other major Indian cities. Reports indicate an average rental hike of 8.1% in Q2 2023 compared to the previous quarter, reflecting the growing demand-supply imbalance in the market. The median monthly rent has surged substantially since pre-pandemic levels, now ranging from INR 55,000-60,000, marking a significant increase from the previous range of INR 30,000-35,000.

• Limited Supply

The surge in rental prices can be attributed, in part, to a lag in the supply of new residential units with adequate amenities. Developers have struggled to keep pace with the soaring demand for rental accommodation, exacerbating the supply-demand imbalance and putting upward pressure on rents.

• Variations by Location

While rental prices across Bangalore are on the rise, there are notable variations based on location. Central and East Bangalore, encompassing areas like Whitefield, Sarjapur Road, and Marathahalli, command the highest rents, with some properties fetching up to INR 80,000 per month. Conversely, North Bangalore offers comparatively more affordable options, with monthly rents for 2 BHK apartments ranging from Rs 25,000 to Rs 35,000 in areas such as Kammanahalli, Hennur, and Kothanur.

Average Rental Yields in Bangalore for Different Localities

Average rental yields in Bangalore vary significantly across different localities, influenced by factors such as location, demand-supply dynamics, infrastructure, and amenities. Here’s a breakdown of rental yields in some key areas of Bangalore:

Locality	Average Rental Yield Range
Central Business District (CBD)	2% – 4%
Whitefield	4% – 6%
Electronic City	4% – 6%
Koramangala	3% – 5%
Indiranagar	3% – 5%
Marathahalli	4% – 6%
JP Nagar	3% – 5%
Hebbal	3% – 5%
Jayanagar	3% – 5%
BTM Layout	3% – 5%
HSR Layout	4% – 6%
Bannerghatta Road	3% – 5%
Sarjapur Road	4% – 6%
Banashankari	3% – 5%
Malleshwaram	3% – 5%
Rajajinagar	3% – 5%
Basavanagudi	3% – 5%
Yelahanka	3% – 5%
Bellandur	4% – 6%
Hennur	3% – 5%
Vijayanagar	3% – 5%
Old Airport Road	4% – 6%
Mahadevapura	4% – 6%
Brookefield	4% – 6%
Frazer Town	3% – 5%
Banaswadi	3% – 5%
Cox Town	3% – 5%
Domlur	3% – 5%
Kalyan Nagar	3% – 5%
Koramangala Layout	3% – 5%
Sanjay Nagar	3% – 5%
Ulsoor	3% – 5%

Please note that these ranges are approximate and can vary based on various factors such as property type, condition, tenant profile, and prevailing market conditions. Conducting thorough research and seeking professional advice is advisable before making investment decisions in any specific locality.

Comparing Bangalore’s Rental Yield With Other Major Indian Cities

While Bangalore’s rental yields are competitive compared to other major cities in India, they tend to vary based on factors such as locality, property type, and market dynamics. Investors should conduct thorough research and analysis to identify the most lucrative investment opportunities across different cities.

City	Average Rental Yield Range
Bangalore	3% – 6%
Mumbai	2% – 3%
Delhi-NCR	2% – 4%
Pune	3% – 5%
Chennai	3% – 5%
Hyderabad	3% – 5%
Kolkata	3% – 5%
Ahmedabad	4% – 6%
Gurugram	3% – 5%
Jaipur	3% – 5%
Chandigarh	3% – 5%
Kochi	3% – 5%
Lucknow	3% – 5%
Bhubaneswar	3% – 5%
Coimbatore	3% – 5%
Visakhapatnam	3% – 5%
Nagpur	3% – 5%
Surat	4% – 6%
Jaipur	3% – 5%
Udaipur	3% – 5%
Varanasi	3% – 5%
Mysore	3% – 5%
Patna	3% – 5%
Guwahati	3% – 5%
Ranchi	3% – 5%
Vijayawada	3% – 5%
Bhopal	3% – 5%
Indore	3% – 5%
Dehradun	3% – 5%
Jamshedpur	3% – 5%

Please note that these ranges are approximate and can vary based on factors such as property type, location within the city, property condition, and prevailing market conditions. Conducting thorough research and seeking NoBroker’s professional advice is advisable before making investment decisions in any specific city.

Factors Impacting Rental Yield in Bangalore

Several factors influence rental yield in Bangalore, shaping the dynamics of the city’s real estate market. Here are some key factors:

Location

• Proximity to employment hubs, educational institutions, transportation networks, and social amenities significantly impacts rental yields.
• Areas near major IT parks such as Whitefield, Electronic City, and Outer Ring Road tend to command higher rental yields due to the presence of a large workforce and demand for rental accommodation.

Property Type and Size

• The type of property (apartment, villa, independent house) and its size play a crucial role in determining rental yield.
• Smaller units may offer higher rental yields as they are more affordable and cater to a wider tenant demographic, including young professionals and small families.

Demand and Supply

• Supply-demand dynamics in the local rental market influence rental yields. Areas with high demand and limited supply of rental properties typically yield higher rental returns.
• Rapid urbanisation, population growth, and migration contribute to increased demand for rental accommodation, driving up rental yields in certain areas.

Infrastructure Development

• Infrastructure projects such as metro expansion, road widening, and connectivity improvements impact rental yields by enhancing accessibility and livability.
• Areas undergoing infrastructural development often experience an uptick in rental demand and yields as tenants seek improved amenities and connectivity.

Market Trends

• Prevailing market trends, including economic conditions, interest rates, and investor sentiment, influence rental yields.
• Market fluctuations, such as changes in property values and rental rates, can impact rental yields both positively and negatively.

Property Conditions and Amenities

• Well-maintained properties with modern amenities and facilities tend to command higher rental yields.
• Upgrading or renovating properties to enhance their appeal and functionality can attract quality tenants and justify higher rental rates, thereby boosting rental yields.

Regulatory Environment

• Regulatory factors such as rent control laws, tenancy regulations, and property taxes can impact rental yields.
• Changes in government policies or regulations may affect landlords’ ability to adjust rental rates and manage operating costs, influencing rental yields.

Tenant Profile

• Understanding the preferences and demographics of potential tenants is essential for maximising rental yield.
• Tailoring properties and rental terms to meet the needs of target tenant segments can help attract and retain tenants, thereby stabilising rental income and yields.

Maximising Your Rental Yield in Bangalore

Maximising rental yield in Bangalore requires a strategic approach that encompasses various factors influencing the local real estate market. Here’s a comprehensive guide on how to maximise your rental yield in Bangalore:

Choose the Right Location

• Select properties in areas with high rental demand, such as near IT hubs, educational institutions, and commercial centres.
• Research upcoming infrastructure projects and developments that could enhance the desirability of the location.

Invest in the Right Property Type

• Consider investing in properties that cater to the preferences of the target tenant demographic, whether it’s apartments, villas, or studio units.
• Assess the market demand for different property types and sizes to ensure optimal occupancy rates.

Maintain and Upgrade Your Property

• Regular maintenance and timely repairs are essential to keep the property in good condition and attract quality tenants.
• Consider investing in renovations or upgrades that add value to the property, such as modern amenities, energy-efficient fixtures, or smart home technologies.

Offer Competitive Rental Rates

• Conduct market research to determine the prevailing rental rates in the area and price your property competitively.
• Consider offering incentives such as flexible lease terms, utility inclusions, or furnished options to attract tenants and justify higher rents.

Effective Property Management

• Partner with a reliable property management company to handle day-to-day operations, tenant enquiries, rent collection, and maintenance tasks.
• Ensure proactive communication with tenants and address any issues or concerns promptly to foster positive landlord-tenant relationships.

Minimise Vacancy Periods

• Implement marketing strategies to minimise vacancy periods, such as leveraging online platforms, social media, and real estate agents to advertise vacancies.
• Offer incentives for longer lease terms or early move-in dates to attract tenants and reduce downtime between tenancies.

Stay Informed About Market Trends

• Stay abreast of market trends, rental demand-supply dynamics, and regulatory changes that could impact rental yields.
• Regularly review and adjust rental rates based on market conditions to maximise income potential.

Diversify Your Investment Portfolio

• Consider diversifying your investment portfolio by investing in multiple properties across different locations or property types.
• Spread your risk and maximise rental yield potential by investing in a mix of long-term and short-term rental properties or exploring alternative rental models such as co-living or vacation rentals.

Long-Term Investment Strategy

• Adopt a long-term investment strategy and focus on building equity and appreciation over time rather than short-term gains.
• Reinvest rental income into property improvements or additional investments to further enhance rental yield and portfolio growth.

Find Rent-Yielding Properties for Sale in Bangalore Only with NoBroker

Investing in rent-yielding properties in Bangalore through NoBroker offers investors a convenient and efficient way to explore lucrative investment opportunities. With NoBroker’s extensive property listings, transparent pricing, and user-friendly interface, investors can easily discover a diverse range of rent-yielding properties, including apartments, villas, and commercial spaces, tailored to their investment goals and preferences.

By connecting directly with property owners and leveraging NoBroker’s value-added services such as property management and tenant verification, investors can streamline the investment process and maximise their returns on investment. With verified listings, dedicated customer support, and real-time market insights, NoBroker provides a trusted platform for investors to make informed decisions and navigate the dynamic real estate market in Bangalore with confidence.

For investors seeking rent-yielding properties for sale in Bangalore, NoBroker serves as a reliable partner, empowering them to build a profitable and diversified real estate portfolio while enjoying the benefits of hassle-free transactions and professional support every step of the way.

Frequently Asked Questions

Rent House in Delhi: Tips and Tricks for Securing Your Ideal Rental

Are you considering renting a house in Delhi, the bustling heart of India? With its rich history, diverse culture, and endless opportunities, Delhi attracts people from all walks of life. Whether you’re a student, a young professional, or a family looking to settle down, finding the right rental property can be a daunting task. But fear not, because we’re here to help you navigate the ins and outs of the Delhi rental market.

Which are the Top 5 Localities in Delhi Where You Can Rent a House?

Looking for the perfect locality to rent a house in Delhi? With its diverse neighbourhoods offering various amenities and lifestyle options, Below are 5 top localities to consider:

1. Green Park

Green Park is a serene and upscale residential locality located in South Delhi. It is known for its lush greenery, wide streets, and proximity to various amenities.

• Peaceful Environment: Residents enjoy a tranquil environment amidst the green surroundings, making it an ideal retreat from the hustle and bustle of the city.

• Convenient Location: Green Park offers easy access to shopping centres, restaurants, schools, and hospitals, ensuring residents’ daily needs are met with convenience.

• Diverse Housing Options: The area offers a mix of housing options, including spacious independent houses, apartments, and builder floors, catering to different preferences and budgets.

Average Rent:

• 1 BHK: ₹20,000 – ₹35,000 per month
• 2 BHK: ₹35,000 – ₹60,000 per month
• 3 BHK: ₹60,000 – ₹1,00,000 per month

USP of the Area: Green Park’s USP lies in its serene environment, excellent connectivity, and diverse housing options, making it an attractive choice for families, professionals, and expatriates alike.

2. Greater Kailash

Greater Kailash, also known as GK, is an upscale residential locality in South Delhi. It’s segmented into three distinct parts: 1, 2, and 3, all of which are situated around a stretch of the Outer Ring Road.

• Connectivity: Greater Kailash’s strategic location on the Outer Ring Road of New Delhi makes it a highly accessible area. This connectivity is a significant advantage for residents who commute to different parts of the city for work or leisure. 

• Luxury Living: Greater Kailash is synonymous with luxury living. The area is characterised by high-density townships and luxury apartments that offer a comfortable and upscale living experience. The variety of plot sizes caters to different housing needs, from compact homes to spacious bungalows. The well-planned infrastructure, clean surroundings, and modern amenities contribute to the luxurious lifestyle.

• Proximity to Amenities: One key advantage of living in Greater Kailash is its proximity to essential amenities. The area houses several reputed schools, providing quality education options for families. It is also home to well-equipped hospitals that offer comprehensive healthcare services. Shopping destinations in and around the area cater to daily needs and lifestyle shopping. 

Average Rent

• 1 BHK: ₹22,600 – ₹40,000 per month
• 2 BHK: ₹40,000  – ₹74,500 per month
• 3 BHK: ₹65,000  – ₹1.3 lakh per month

USP of the Area: Greater Kailash is a prime residential area in South Delhi known for its luxury living, excellent connectivity, and proximity to amenities. The M-Block market is a major attraction, offering a variety of shopping and dining options. The area is well-connected to the Outer Ring Road, making commuting easy. With a variety of plot sizes and luxury apartments, Greater Kailash offers a comfortable and upscale living experience.

3. Hauz Khas

Hauz Khas, a lively neighbourhood in South Delhi, is renowned for its historical richness and cultural relevance. It’s a fascinating fusion of medieval history and contemporary urban lifestyle, where Islamic architectural remnants stand alongside trendy boutiques, art galleries, and eateries.

• Historical Importance: Hauz Khas is home to a royal water tank, an Islamic seminary, an ancient mosque, and the tomb of Firuz Shah Tughlaq, all of which reflect the 13th-century medieval history of the Delhi Sultanate era.

• Greenery: The Deer Park, one of Delhi’s largest green spaces, is located in this area, providing a refreshing break from the city’s hustle and bustle.

• Lively Nightlife: Hauz Khas Village transforms into a nightlife hotspot as the sun sets, with a plethora of bars and restaurants offering diverse cuisines.

• Boutique Shopping: The area is dotted with independent craft stores and art galleries, making it a popular destination for those seeking unique, handcrafted items.

Average Rent

• 1 BHK: ₹22,300 and ₹50,000 per month
• 2 BHK: ₹38,800 to ₹1.2 Lakh per month
• 3 BHK: ₹68,000 and ₹1.3 Lakh per month

USP of the Area: Hauz Khas, a centrally located neighbourhood in South Delhi. The neighbourhood is flanked by Green Park, SDA to the west, Gulmohar Park to the north, Sarvapriya Vihar to the south, and Asiad Village and Siri Fort to the east. It’s well-connected to other parts of Delhi and is in close proximity to major commercial hubs, educational institutions, and healthcare facilities. 

4. Saket

Saket is a luxurious neighbourhood in South Delhi. It’s named after the ancient city of Ayodhya, also known as Saket, a place of religious significance in Uttar Pradesh.

• Prime Location: It’s centrally located and close to important places like Vasant Vihar, Munirka, Panchsheel, and IIT. Saket is the main office for the South Delhi district. 

• Sports Facilities: Saket Sports Complex is a significant sports facility in Saket, offering a range of sports facilities including tennis, badminton, squash, cricket, and more. Numerous gyms and fitness centres are also available.

• Public Transport: Saket boasts excellent connectivity to other parts of Delhi via buses, railways, and rickshaws. The Saket Metro Station on the Yellow Line provides easy access to other parts of Delhi.

Average Rent

• 1 BHK: ₹7,000 and ₹27,400 per month
• 2 BHK: ₹13,450 and ₹35,000 per month
• 3 BHK: ₹30,000 and ₹75,000 per month

USP of the Area: Saket’s unique selling point is its combination of residential comfort, commercial vibrancy, and cultural richness. Its central location and excellent connectivity make it a preferred choice for residents. The presence of high-end retail outlets and entertainment hubs, including the second Apple Store in India, enhances its appeal. The area’s upscale nature, marked by ample greenery and excellent infrastructure, further adds to its attractiveness.

5. Vasant Kunj

Vasant Kunj is an upscale locality situated in South West Delhi, India. This neighbourhood is the residence of choice for numerous business tycoons, celebrities, sports personalities, and political figures. The area is systematically divided into five sectors – A, B, C, D, and E, each of which is further segmented into various pockets for better organization.

• Residential Options: Vasant Kunj offers a diverse range of residential options, from luxurious farmhouses that provide a lavish lifestyle to modern apartments that cater to the needs of the urban population. The area is known for its well-planned and spacious properties, making it a preferred choice for people looking for comfortable and upscale living spaces.

• Cultural Landmarks: Vasant Kunj is rich in cultural heritage, with several landmarks that attract tourists and locals alike. One such landmark is the Sultan Garhi’s Tomb. This historical monument stands as a testament to the area’s rich past. The presence of such landmarks adds a unique cultural flavour to the locality.

• Proximity to the Airport: One of the most significant advantages of living in Vasant Kunj is its proximity to the Indira Gandhi International Airport. Being just 5.9 Km away from Terminal 3, it offers excellent convenience for frequent flyers and professionals who often travel for work. This connectivity makes it an ideal location for those seeking ease of travel.

Average Rent

• 1 BHK: ₹13,800 and ₹28,000 per month
• 2 BHK: ₹26,000 and ₹45,0006 per month
• 3 BHK: ₹46,400 and ₹75,000 per month

USP of the Area: Vasant Kunj, an affluent neighbourhood with its close proximity to the airport and popular employment hub Gurugram, makes it a preferred choice for many. The area is known for its luxurious farmhouses, excellent infrastructure, and peaceful environment. Surrounded by lush greenery, Vasant Kunj provides a serene and tranquil living experience, making it a highly sought-after locality in Delhi.

6. Mayur Vihar

Mayur Vihar, a premium residential locality in East Delhi, is strategically located near the Noida-Delhi border, just across the Yamuna River. It is divided into three distinct phases and is recognised for its superior connectivity and contemporary infrastructure.

• Superior Connectivity: Mayur Vihar is well-connected through various major roads such as Gurjar Samrat Mihir Bhoj Marg, Service Road, Chand Cinema Road, Trilok Puri Road, and Ghazipur Road. Additionally, it is well-serviced by the Blue Line and Pink Line of the Delhi Metro.

• Close to City Center: The area’s close proximity to the city centre makes it a desirable place to live.

• Peacock Sanctuary: The locality houses a dedicated sanctuary for the conservation of peacocks, adding to its unique charm.

Average Rent

• 1 BHK: ₹10,350 and ₹20,000 per month
• 2 BHK: ₹16,300 and ₹32,200 per month
• 3 BHK: ₹29,200 and ₹49,000 per month

USP of the Area: Mayur Vihar is an ideal place to rent a property due to its excellent connectivity, affordability, and range of amenities. Its strategic location near commercial hubs makes it a great choice for working professionals. The area also offers a strong sense of community and security with numerous residential societies. These factors, combined with a reliable water supply and power backup, make Mayur Vihar a desirable location for potential renters.

What is the Average Cost of Living in Delhi?

It is essential to understand the average cost of living in Delhi before you move in to manage your expenses effectively. Some of the associated costs are:

Type of Expense	Students or bachelors	Couples	Family of Four (2 Adults + 2 Kids)
Accommodation	₹ 4,000 – ₹ 8,000	₹ 9,000 – ₹ 20,000	₹ 10,000 – ₹ 30,000
Groceries	₹ 1,000 – ₹ 1,500	₹ 2,000 – ₹ 4,500	₹ 4,000 – ₹ 15,000
Transport	₹ 1,000 – ₹ 2,500	₹ 1,500 – ₹ 3,500	₹ 3,000 – ₹ 7,000
Utilities	₹ 600 – ₹ 1,500	₹ 2,000 – ₹ 4,000	₹ 3,000 – ₹ 6,000
Entertainment	₹ 4,000 – ₹ 8,000	₹ 4,000 – ₹ 10,000	₹ 3,000 – ₹ 8000
Schooling of Kids	N/A	N/A	₹ 3,000 – ₹ 20,000

What are the Things to Consider Before you Choose an Area for Renting a Property in Delhi?

Choosing the right area for renting a property in Delhi requires careful consideration of various factors to ensure that it meets your needs and preferences. Some key things to consider:

1. Location

The location of your rental property can significantly impact your daily life. You should consider the proximity to your workplace or educational institution to minimise commute time. Check for connectivity to major roads, highways, and public transportation like metro stations and bus stops. Also, traffic conditions should be considered during peak hours.

2. Neighbourhood

The neighbourhood defines your immediate surroundings. A safe and friendly neighbourhood enhances your living experience. Check for the availability of essential amenities like grocery stores, hospitals, parks, and schools. Also, consider the area’s noise levels, cleanliness, and overall vibe.

3. Budget

Your budget is critical to choosing a rental property. You need to consider the rent and additional costs like maintenance charges, utility bills, parking fees, and security deposits. Make sure the total expenditure fits comfortably within your financial plan.

4. Property Condition

A thorough inspection of the property is essential. Look for signs of damage like cracks, dampness, or pest infestation. Check the functionality of utilities like water supply, electricity, and internet connectivity. Also, consider the property’s age, as older properties may require more maintenance.

5. Lease Terms

The lease agreement is a legal document that outlines the terms and conditions of the rental arrangement. It includes details like the duration of the lease, rent amount, payment terms, and responsibilities of the tenant and landlord. Ensure you understand all the clauses and consult a legal expert if needed.

6. Property Type

The type of property should suit your lifestyle and needs. Apartments offer community living with access to shared amenities like a gym or swimming pool. Independent houses provide more privacy and space. Builder floors, a popular choice in Delhi, balance both.

7. Legalities

Ensure the property has all the necessary clearances and no pending disputes or legal issues. Verify the ownership of the property and check if all the property taxes and dues have been paid. It’s advisable to seek professional help to navigate through these legal aspects.

What are the Tips for Renting a House in Delhi?

Renting a house in Delhi can be exciting and difficult due to the changing rental prices. To handle this effectively, here are some tips to keep in mind: 

1. Determine Your Budget 

Understanding your financial situation before you start looking for a house is crucial. This includes your income, savings, and monthly expenses. Once you have a clear picture, you can determine how much you can afford to pay monthly rent. Remember to factor in additional costs such as utility bills, maintenance charges, and potential rent increases.

2. Choose the Right Location 

Delhi is a big city with a number of localities. When choosing a location, consider your daily commute, the availability of public transportation, the safety of the neighbourhood, and the proximity to schools, hospitals, markets, and other amenities. Also, consider the area’s noise levels, traffic, and air quality.

3. Check the Property Condition 

Before signing the lease, it is essential to inspect the property thoroughly. Look for signs of damage, such as cracks in the walls, leaking pipes, or faulty electrical wiring. Check the condition of the appliances, fixtures, and fittings. If there are any issues, discuss them with the landlord and ensure they are addressed before you move in.

4. Understand the Lease Agreement

The lease agreement is a legal document that outlines the terms and conditions of the rental. It should include details such as the rent amount, payment date, lease term, and conditions for termination. Make sure you understand all the terms and conditions before signing. If anything is unclear, don’t hesitate to ask for clarification.

5. Negotiate the Rent 

In many cases, the rent is negotiable. If the property has been vacant for a while, or if you’re willing to commit to a longer lease term, the landlord may be willing to reduce the rent. Don’t be afraid to negotiate, but be respectful and realistic.

6. Verify the Landlord

Unfortunately, rental scams are not uncommon. To protect yourself, make sure the person you’re dealing with is the actual owner of the property or has the authority to lease it. You can ask for proof of ownership, such as a property deed or tax bill.

How can NoBroker Help you?

NoBroker is a unique platform that can greatly help your search for the best rental house in Delhi. NoBroker is a real estate platform that eliminates the need for a broker by connecting property owners directly with potential tenants. It offers a wide range of properties, including independent houses and flats, in various localities. 

Each property listing provides detailed information such as rent, deposit, built-up area, and furnishing status, which can help you make an informed decision. One of the key features of NoBroker is that it allows direct contact with property owners, eliminating the need for brokers and their associated fees. 

The platform also offers filter options, allowing you to customise your search based on rent range, property type, furnishing status, and preferred tenants. Moreover, all properties listed on NoBroker are verified, ensuring that you have access to legitimate and reliable options. Remember, visiting the property and meeting the owner before making decisions is always important. 

Conclusion

Finding the best rental house in Delhi requires thorough research, clear priorities, and effective communication with landlords or real estate agents. Remember to stay patient and persistent in your search, as the perfect rental property may take time. With careful planning and diligence, you’ll soon be settling into your ideal home in the vibrant city of Delhi.

Moreover, make use of platforms like NoBroker to make this process much easier. NoBroker is a real estate platform that eliminates intermediaries and also assists you in rental agreements, movers and packers, and even furniture rentals, making your move to a new house hassle-free. Start your house-hunting journey with NoBroker today!

Frequently Asked Questions

Renting a House vs Renting an Apartment: Which One is Better?

Renting a house vs renting an apartment is a common dilemma for prospective renters. Both options offer unique benefits and drawbacks, making it essential to carefully consider your preferences and lifestyle. Here let’s explore the key differences between renting a house vs apartment, to help you make an informed decision. From space and privacy to maintenance responsibilities & cost considerations, let’s cover everything you need to know to navigate your rental search effectively. By understanding the distinct features of each housing option, you can choose the one that best suits your needs and preferences.

Distinguishing Between Renting a House and Renting an Apartment

When choosing your next rental, understanding the disparities between renting a house better than an apartment or not is crucial. Let’s explore the primary differences between these two options:

1. Space and Privacy:

Houses typically offer more square footage and additional rooms compared to apartments. This surplus of space often translates to enhanced privacy, as tenants are less likely to be impacted by shared walls or noisy neighbours. Additionally, houses may include outdoor areas like yards or garages, providing tenants with exclusive outdoor space.

2. Convenience and Amenities:

Apartments prioritise convenience, often boasting prime locations in city centres and offering a wide range of amenities. On-site facilities such as gyms, laundry rooms, and communal spaces contribute to a streamlined lifestyle. While apartments may offer less space than houses, they compensate with amenities and proximity to urban amenities.

3. Maintenance Responsibilities:

Renting a house often entails more maintenance responsibilities for tenants. This includes tasks such as lawn care, snow removal, and general upkeep of the property. In contrast, apartment complexes typically handle maintenance tasks, alleviating tenants of these burdens.

4. Lease Terms and Flexibility:

Apartments often provide more flexibility in lease terms, with options for shorter-term agreements or month-to-month leases. This flexibility can be advantageous for those with uncertain long-term plans or frequent relocations. Houses may offer less flexibility in lease terms, often requiring longer commitments.

5. Community Atmosphere:

Apartments foster a sense of community among residents, with opportunities for social interaction in common areas or organised events. In contrast, renting a house may provide a more secluded living environment, appealing to those seeking solitude or privacy.

6. Customisation and Personalisation:

Renting a house may offer more opportunities for customisation and personalisation. Tenants can decorate or modify the space to suit their preferences, with fewer restrictions compared to apartments. Apartments may have limitations on alterations or renovations due to lease agreements or building regulations.

Pros and Cons of Renting a House vs Apartment

Pros and Cons of Renting a House

Pros of Renting a House	Cons of Renting a House
More space: Houses generally offer larger square footage and additional rooms compared to apartments.	Larger space to clean: With more space comes more time spent maintaining and cleaning the property.
More privacy: Living in a house typically provides greater privacy, with fewer shared walls and neighbours in close proximity.	Less access to maintenance crew: Unlike apartments, houses may not have on-site maintenance staff readily available to address issues.
Rent-to-own potential: Some landlords may offer rent-to-own arrangements, providing tenants with the opportunity to purchase the property in the future.	Limitations on outdoor space: Landlords may impose restrictions on the use of outdoor areas, such as prohibiting certain activities or items in the yard.
Potential for rental arbitrage: Renters may have the option to rent out individual rooms or portions of the house, potentially generating additional income.	Higher utility costs: Larger houses often result in higher utility bills compared to apartments, especially in terms of heating and cooling expenses.
Fewer pet restrictions: Landlords may have fewer restrictions on pets in houses, allowing for larger or more diverse pet breeds.	Limited amenities: Houses may lack amenities commonly found in apartment complexes, such as gyms, pools, or community spaces.
More parking options: Houses typically come with private driveways or street parking, eliminating the need for additional parking fees.	Potential for higher rent: Renting a house may be more expensive than renting an apartment, especially in desirable neighbourhoods or cities.

Pros and Cons of Renting an Apartment

Pros of Renting an Apartment	Cons of Renting an Apartment
Convenience: Apartments often offer prime locations in city centres, providing easy access to urban amenities and entertainment options.	Higher rent prices: Renting an apartment may come with higher monthly rent costs, especially in popular cities or desirable neighbourhoods.
Amenities: Apartment complexes frequently include on-site facilities such as gyms, laundry rooms, and communal spaces, enhancing residents’ quality of life.	Less privacy: Living in close proximity to neighbours in an apartment building may result in reduced privacy compared to a standalone house.
Maintenance included: Apartment complexes typically handle maintenance tasks, relieving tenants of responsibilities such as lawn care or snow removal.	Pet restrictions: Some apartment buildings impose restrictions on pet ownership, including breed or size limitations, which may limit options for pet owners.
Flexibility in lease terms: Apartments often offer flexibility in lease lengths, with options for shorter-term agreements or month-to-month leases.	Costly parking: Apartment complexes may charge additional fees for parking, adding to the overall cost of living for tenants who own vehicles.
Community atmosphere: Apartments foster a sense of community among residents, with opportunities for social interaction in common areas or organised events.	Limited customisation: Tenants may face restrictions on personalisation or modifications to their apartment space, such as painting or renovations.
Lower utility costs: Smaller living spaces in apartments generally result in lower utility bills compared to houses, saving tenants money on monthly expenses.	Nuisances: Living in close proximity to neighbours may lead to noise disturbances, infestations, or other inconveniences that are beyond the tenant’s control.

Is it Better to Rent a House or an Apartment? 

When it comes to deciding whether is it better to rent a house or an apartment, it boils down to individual preferences, lifestyles, and specific needs. Let’s explore some factors to consider when making this decision:

1. Space and Privacy:

• Renting a house typically offers more space, both indoors and outdoors, providing tenants with greater privacy and room to spread out.
• On the other hand, apartments may have limited space but offer the convenience of shared amenities and a potentially vibrant community atmosphere.

2. Convenience and Location:

• Apartments are often located in central areas, offering easy access to urban amenities, public transportation, and entertainment options.
• Houses, especially those in suburban or rural areas, may require a longer commute for amenities but offer a quieter and more residential setting.

3. Maintenance Responsibilities:

• Renting a house usually means taking on more maintenance tasks, such as lawn care, snow removal, and repairs.
• Apartments typically have maintenance services provided by the landlord or property management, relieving tenants of these responsibilities.

4. Flexibility in Lease Terms:

• Apartments may offer more flexibility with lease terms, including shorter-term agreements or month-to-month rentals.
• Houses often require longer lease commitments, which may be less suitable for those with uncertain or changing living situations.

5. Cost Considerations:

• Renting a house may come with higher monthly rent payments, especially in desirable neighbourhoods or areas with more space.
• Apartments generally have lower rent costs but may come with additional fees for amenities or parking.

6. Personal Preferences:

• Some individuals prefer the privacy and autonomy of a house, while others enjoy the convenience and social aspects of apartment living.
• Consider factors such as lifestyle, family size, pet ownership, and long-term plans when determining which option aligns best with your preferences.

Ultimately, the decision between renting a house or an apartment comes down to weighing these factors against your priorities and circumstances. There’s no one-size-fits-all answer, as what may be the best choice for one person may not necessarily be the right fit for another. By carefully considering your needs and preferences, you can make an informed decision that suits your lifestyle and budget.

Simplifying Your Rental Search with NoBroker Today!

Whether you’re considering renting a house vs renting an apartment, NoBroker can streamline your search process. Our platform offers a wide range of rental listings, allowing you to explore options based on your budget, desired location, and specific needs. With NoBroker, finding your dream home is easier than ever. Simply browse through our extensive database, connect with our experts, and secure the perfect rental property hassle-free. Visit NoBroker today to discover the best houses and apartments for rent tailored to your preferences. Contact our experts now and take the first step towards finding your ideal home.

Frequently Asked Questions

Unveiling Delhi’s Hidden Gems: Best Societies to Live In

Are you looking to settle down in Delhi? If yes, then you may have found yourself struggling with the vast range of options available. Thus, having an idea about the best society in Delhi is essential. But do not worry! That is where this article comes in.

This article will examine the top 10 best societies in Delhi. This article will also discuss several tips to help you select the best society. Whether you are a young professional searching for a vibrant society or a family looking for a safe and secure atmosphere, this article is for you. So, let’s get started! 

List of Top 10 Best Society In Delhi

Some of the top 10 Society in Delhi include:

Society Name	Address
Harsh Apartments,	H3Q4+JG3, Pocket 1, Sector 10, Dwarka, Delhi, 110075
Saket Kunj Society	Plot no 8, Rajapur, Pocket 11, Sector 9, Rohini, Delhi, 110085
Shubham Apartments	13, Ranjit Vihar-I, Sector 22, Dwarka, New Delhi, Delhi, 110061
Godrej South Estate	Plot No B-319, Pocket B, Phase -I, Okhla Industrial Estate, South Delhi, Delhi, 110025
Shivalik Apartments	Shaheed Suryasen Marg, Greater Kailash II, Kalkaji, Delhi,110019
Mayfair Garden	Hauz Khas, Delhi 110016
DLF Capital Greens	DLF Capital Greens, Moti Nagar, Karampura Industrial Area, Delhi, 110015
Unity The Amaryllis	1, New Rohtak Rd, Block 67, Karol Bagh, Delhi, 110005
Shakuntalam Apartment	Plot no 16, Sector 10, Dwarka, Delhi, 110075
DLF King’s Court	W Block, Alaknanda Rd, Part 2, Greater Kailash, Delhi 110048

Top Societies in New Delhi

Some of the well-known and sought-after residential societies in New Delhi:

1. Harsh Apartments

Harsh Apartments is a housing project in Dwarka, New Delhi. The surrounding areas include Sector 11 Dwarka, Sector 6 Dwarka, Sector 19 Dwarka, Sector 23 Dwarka, and Sector 2 Dwarka. The closest metro stations are Dwarka Sector 10 Metro Station and Dwarka Sector 11 Metro Station. The Palam flyover offers easy access to different parts of Delhi.

The society is near to well-known schools like Rising Stars Junior School and GD Goenka Public School close by. Healthcare facilities such as Ayu Health Hospital and Venkateshwar Hospital are easily accessible. Aggarwal Plaza is a shopping and entertainment centre that is 200m away.

In Harsh Apartments, the primary property type is 2 BHK flats. These properties are priced between ₹1 crore and ₹1.2 crore. The average cost per square foot is around ₹9,636. Over time, the property prices in the area have grown by about 4%.

The apartment’s unique selling points include its prime location, excellent connectivity, and proximity to social infrastructure like schools, hospitals, and malls. Moreover, the homes in Harsh Apartments are spacious, well-ventilated, and well-lit, offering a great living experience.

Map View: https://maps.app.goo.gl/233JiUGeR5Nk7AAM6

2. Saket Kunj Society

Saket Kunj Society is a residential area in Rohini in Delhi. It’s well-placed and offers easy access to most central locations in and around Delhi. The society is recognised for its excellent location, comfortable lifestyle, top-notch facilities, healthy environment, and high return.

The Saket Metro Station on the Yellow Line of the Delhi Metro is the closest metro station to the society. The details about the nearest railway station should be explicitly mentioned. It’s close to many renowned schools like Gyan Bharati School and Red Roses Public School.  It is also close to shopping centres such as DLF Avenue and Nexus Select City Walk and hospitals like Chikitsa Hospital and Geetanjali Hospital. 

The prices generally range between ₹75 lakhs – ₹7.05 crore. The average cost per square foot is around ₹12,186. The property prices have seen a rise of 2.92%. The Saket Kunj Society is home to various property types, including apartments and independent floors. 

Map View: https://maps.app.goo.gl/wwDTSLAur23TPXnF6

3. Shubham Apartments

Shubham Apartments is a housing project in Dwarka. The apartment is adjacent to areas like Sector 8, Sector 9, Sector 19, Sector 10, and Sector 29 of Dwarka.  The closest metro station to Shubham apartments is the Dwarka Sec-21 Metro Station, roughly 1.2 km away.

Shubham Apartments is close to many renowned schools, such as the Bal Bharati Public School and SAM International School. It is also close to hospitals like Medeor Hospital and BENSUPS Multi-speciality Hospital. It is also cost to shopping like City Centre Dwarka and Vardhaman Mall. 

The property prices in Shubham Apartments range between ₹96.25 lakhs – ₹1.40 crore. The average cost per square foot in Shubham Apartments is ₹10,110. 

Shubham Apartments offers 2 BHK and 3 BHK apartments. The price for these properties ranges from ₹96.25 lakhs to ₹1.40 crore. The 2 BHK apartments have a super built-up area of 1100 sq. ft, while the 3 BHK apartments have a super built-up area of 1600 sq. ft. 

Map View: https://maps.app.goo.gl/smRK4QbzmgfucbtL8

4. Godrej South Estate

Godrej South Estate is a leading project by Godrej Properties in Okhla in South Delhi. The society is close to Greater Kailash, New Friends Colony, and Defence Colony. The locality is close to the Delhi-Noida Direct Road and the Outer Ring Road, making it easy to travel to cities like Noida and Faridabad.

The closest metro station is Vishwavidyalaya, which is a 13-minute walk away. The closest bus stop is Dhaka Village Chowk, a 3-minute walk away. The Okhla Railway Station is also close by. There are  several best schools in the area like God’s Grace School and Bloomdale School. For health care, you can visit hospitals like Holy Family Hospital, Cribs Hospital and other public services. 

The properties available in Godrej South Estate include luxury 2, 3, and 4 BHK flats.  These units have large floor plans, sunlight-filled rooms, and attractive designs.  The average cost per square foot in Godrej South Estate is ₹ 22,381, with the price starting at ₹5 crore. 

Map View: https://maps.app.goo.gl/FV7vXZDh3Ncfekkr9

5. Shivalik Apartments

Shivalik Apartments is located in Malviya Nagar, Delhi. This area is a patriot of South Delhi and is surrounded by well-known areas like Hauz Khas, Panchsheel, Saket, and Pushp Vihar.. The Malviya Nagar Metro Station (Yellow Line) is just 0.8 km away, and the Hazrat Nizamuddin Railway Station is 7.4 km away.

Shivalik Apartments is close to many famous schools, such as Arya Public School and Siksha Academy. The society is also nearby to hospitals like Vardaan Hospital and VNA Hospital. The Infinity Palace provides entertainment and other shopping facilities.

The total built-up area ranges from 550 sqft to 1100 sqft. The price range for these properties varies between ₹77 lakhs – ₹1.54 crore. The average cost per square foot in the Shivalik Apartments area is about ₹6,475.  Shivalik Apartments offers a range of 1 BHK to 3 BHK apartments. These apartments are spacious, well-ventilated, and comply with Vastu principles. 

Map View: https://maps.app.goo.gl/d9E3uAfY65FRfYfn9

6. Mayfair Garden

Mayfair Garden is a high-end residential area in Hauz Khas. It’s located in the southern part of Delhi.  The society is near Hauz Khas, Safdarjung Development Area, Green Park, Green Park Extension, and Arjun Nagar. The area is well-connected to other parts of Delhi through roads and metro lines. 

The nearest metro station on the yellow line is Hauz Khas Station. Other close stations include the IIT Metro Station, Green Park Metro Station, and Malviya Nagar Metro Station.  Delhi Public School R.K.Puram and Kalka Public School are the nearby schools to the society. The notable hospitals nearby society include Max Multi Speciality Hospital and Aakash Hospital. The area also has many parks and green spaces.

The properties for sale in Mayfair Garden are generally priced above ₹5cores. The average price of properties in Mayfair Garden is ₹26,568 per sqft. The starting price of properties is ₹20,138 per sqft, and the most expensive is ₹33,333 per sqft. The property rates in Mayfair Garden have increased by 27.79% over the last year.  The most common type of property for sale is 4 BHK, which makes up about 57% of all properties for sale.

Map View: https://maps.app.goo.gl/cS6BTpZgRSxGbHuR8

7. DLF Capital Greens

DLF Capital Greens is a high-end residential project at Shivaji Marg in Moti Nagar.  The locality is nearby to Kirti Nagar and Onkar Nagar. The complex is easily reachable via the New Delhi Railway Station, Connaught Place, and Indira Gandhi International Airport. It’s surrounded by four metro lines with five metro stations within a 3 Km radius. 

It’s close to many roads, including Shivaji Marg, Ring Road, Rohtak Road, and Main Mathura Road. These roads make it simple to get to Connaught Place, New Delhi Railway Station, and Indira Gandhi International Airport. 

The area has a solid social infrastructure with many schools like Blooming Buds Public School and Maharishi Dayanand Public School. For medical emergencies, Apollo Cradle Maternity & Children’s Hospital and New Medical Centre are nearby. You can also find shopping centres like DLF Midtown Plaza. 

The prices for these properties vary, with 2 BHK apartments starting from around ₹2.78 crore, 3 BHK apartments ranging between ₹ 2.78 crores – ₹4.33 crores, and 4 BHK apartments priced between ₹6 crores and ₹8.42 crores. The average cost per square foot is approximately ₹26,480.

DLF Capital Greens offers different types of properties, including 2, 3, and 4 BHK apartments. The project has three phases, offering a total of 2856 units. The society also offers amenities like a clubhouse, swimming pool, indoor & outdoor games, cafeteria, and more.

Map View: https://maps.app.goo.gl/pKmLxkeQsFBBAuCV8

8. Unity The Amaryllis

Unity The Amaryllis is a high-end residential complex on New Rohtak Road in Karol Bagh. This location is strategically placed in the central part of Delhi, and it’s approximately 3.9 Km from Connaught Place, 4.9 Km from Rashtrapati Bhawan, and 5.9 Km from India Gate. 

The area is well-connected and offers excellent transportation options. It is well-linked to other crucial transportation hubs, such as the Delhi-NCR Industrial Corridor and the Delhi-Gurgaon Expressway. State buses, taxis, and auto-rickshaws are readily available for commuting. 

The closest metro station is the Jhandewalan Metro Station, just 1.6 km away. The New Delhi Railway Station, a central railway hub, is also conveniently close, only 3 km away.

The area has a strong social infrastructure, with various facilities available. Well-known schools like New Bloom School and Modern Cambridge School and colleges. The area also has hospitals like Apollo Spectra Hospitals and Dr. N.C. Joshi Memorial Hospital. Markets like Gaffar and Connaught Place are also nearby.

The properties available in Unity The Amaryllis include 2, 3, 4, and 5 BHK apartments. The size of the apartments varies from 1252 sqft to 5402 sqft. These properties’ prices range between ₹1.95 crore – ₹11.5 crore.  This area’s average cost per square foot varies between ₹7,000 – ₹11,000. The average price for Unity The Amaryllis is ₹21,960 sqft.

Map View: https://maps.app.goo.gl/zjMbgkj7nH2VAZqh7

9. Shakuntalam Apartment

Shakuntalam Apartments is a well-organized housing project in Sector 10, Dwarka. It’s surrounded by nearby sectors like Sector 11, Sector 6, Sector 19, Sector 23, and Sector 2 of Dwarka. The apartment is near Najafgarh Road. The closest metro station is the Dwarka Sector-11 Metro Station, which is 2 Km away.

The society is nearby to renowned schools like Venkateshwar International School and Saraswati Model School. You can visit Ayushman Hospital and Grace Hospital. The society also offers amenities like a clubhouse, round-the-clock security, various sports facilities, parks, gardens, a swimming pool, and a dedicated area for children to play.

The properties’ price range usually varies between ₹6,235 – ₹15,000.  The price for the properties ranges between ₹1.06 crores – ₹1.65 crores. The total built-up area of the apartments varies from 1100 sqft to 1700 sqft. The apartment offers 2 BHK and 3 BHK apartments.  The apartments are well-designed, spacious, well-ventilated, and comply with Vastu. 

Map View: https://maps.app.goo.gl/gNJWgAZjbA3GvECQ8

10. DLF King’s Court

DLF King’s Court is situated in the upscale W-block of Greater Kailash II. The project is next to an 8-acre city park with a view of the vast Jahanpanah forest. The nearby areas include Chittaranjan Park, GK-1, Lajpat Nagar, and Nehru Place. It’s also close to districts like South Ex, Nehru Place, and Okhla.

It’s next to the Outer Ring Road, which goes around New Delhi and is essential for the city’s connectivity. The Greater Kailash Metro (Magenta Line) and Nehru Place Metro (Violet Line) are the closest metro stations. The Indira Gandhi International Airport is 14.7 Km away. The closest railway stations are Hazrat Nizamuddin Railway Station (9.1 Km away) and New Delhi Railway Station (14.4 Km away).

The area has a robust social infrastructure, with well-known schools like Oxford Angel Public School and The Heritage School and hospitals like Sukhda Hospital and Phoenix Hospitals. The project offers amenities like a gym, power backup, a children’s play area, a swimming pool, and round-the-clock security.  It has an exclusive clubhouse for social gatherings, dining, lifestyle benefits, and fitness facilities.

DLF King’s Court offers a variety of property types, including apartments and independent floors. The residences range from 5000 sqft. to 7000 sqft. The units available include 3, 4, and 5 BHK apartments and 5 BHK townhouses.

The price range for properties varies, with 4 BHK apartments priced at ₹23.11 crore and 5 BHK flats going up to ₹35.25 crore. The average cost per square foot is around ₹47,000. The project offers super-luxury homes and is home to 57 select luxury residences spread over 2.46 acres. It provides a grand lifestyle with every modern luxury you could imagine, making it an ideal choice for those who never settle for second best.

Map View: https://maps.app.goo.gl/RFghTRpXo3GrS8Vd6

Things to Consider Before Selecting a Society

Selecting a society to live in is a significant decision that requires careful consideration. Thus, some are the factors that can impact the rent rates in the area:

1. Location

The proximity to city centres, business districts, schools, hospitals, and public transportation can significantly influence rent rates. Areas closer to these amenities generally have higher rents.

2. Safety and Security

Neighbourhoods with lower crime rates and better security measures often have higher rent rates. People are willing to pay more for safety and peace of mind.

3. Quality of Infrastructure

The quality of local infrastructure, including roads, utilities, and public services, can affect rent rates. Better infrastructure usually leads to higher rents.

4. Amenities

The availability of amenities within the society, such as parks, gyms, swimming pools, community centres, etc., can also impact the rent. Societies with more amenities generally command higher rents.

How can NoBroker Help?

If you are still having difficulty finding the best society in Delhi, you must consider the professional help of NoBroker. NoBroker is a full-service real estate platform that can guide you in locating the finest residential community in Delhi or any other city. Our platform showcases a broad spectrum of listings, including flats, houses, and apartments available for rent or purchase.

Beyond assisting you in your property search, we also extend a range of home services. These include AC servicing & repair, relocation services, painting, home cleaning, and home renovation. These services are provided at reduced rates, with promotional offers such as up to 50% discount on certain services.

So, if you are looking to invest in a property in NoBroker, reach out to us, and we will be there to assist you.

Frequently Asked Questions

GST on Rent: Understanding Its Impact and Rules

GST on rent has been the topic of discussion in the legal world and household spheres. GST was implemented on the 1st of July, 2017, but it has been in talks in Parliament for several years now. Every one of us looks to rent a place or to give a place on rent, GST now goes hand in hand with your plans. Not sure of the GST rates on rent? This article will help you with the information you need. To make it easier for you, the information in this article is backed by examples. 

The Positive Impact of GST on Rental Transactions

Payment of rent is of the utmost priority in any commercial business or personal life. The impact of GST on rent has been positive, it is a more structured method of collecting taxes from various sectors. Through the years we have seen that rent has been the source of income for many people. And GST on rental income has enabled a fair system of payment of taxes. 

Does Renting Out a Property Incur GST?

Renting out an immovable property is categorised under the GST Act as providing a service. This means that GST applies to certain rental scenarios, such as:

Leasing, renting, licensing, or allowing an easement on any property.

Letting out any property, whether it be for commercial, industrial, or residential use, for business purposes in full or in part.

This categorisation deems such activities as services, hence subject to GST. Notably, renting a residential property purely for living purposes escapes GST imposition. Conversely, any form of property rental aimed at business operations attracts a GST rate of 18%, recognised as a service supply.

There’s a notable exemption: residential properties leased in a personal capacity for use as a residence do not attract GST. This exemption was highlighted during the 48th GST Council meeting, specifying that no GST is levied on residential dwellings rented by registered individuals for their personal use as a residence. For instance, if a person running a proprietorship rents a residential property for personal use, distinct from business operations, such rental is exempt from GST. This clarification ensures a clear distinction between personal and commercial property rentals under the GST framework.

Does Renting Out a Property Incur GST?

Renting out an immovable property is categorised under the GST Act as providing a service. This means that GST applies to certain rental scenarios, such as:

• Leasing, renting, licensing, or allowing an easement on any property.
• Letting out any property, whether it be for commercial, industrial, or residential use, for business purposes in full or in part.

This categorisation deems such activities as services, hence subject to GST. Notably, renting a residential property purely for living purposes escapes GST imposition. Conversely, any form of property rental aimed at business operations attracts a GST rate of 18%, recognised as a service supply.

There’s a notable exemption: residential properties leased in a personal capacity for use as a residence do not attract GST. This exemption was highlighted during the 48th GST Council meeting, specifying that no GST is levied on residential dwellings rented by registered individuals for their personal use as a residence. For instance, if a person running a proprietorship rents a residential property for personal use, distinct from business operations, such rental is exempt from GST. This clarification ensures a clear distinction between personal and commercial property rentals under the GST framework.

What is the effect of GST on Rent?

The advent of GST, or Goods and Services Tax, has made collecting taxes from diverse sectors much easier and more organised. Rent is one such business that has provided money for countless people throughout the years. In this essay, we’ll look at how GST has affected rent since its implementation. Let’s look at several circumstances where the GST is different for commercial and residential properties.

Previously, if a landlord’s total taxable services (including rental revenue from all properties) exceeded Rs.10 lakh per year, they had to register for service tax. The landlord will not be drawn to service tax as long as the rental revenue (from all rented properties) does not exceed Rs.10 lakh per year.

Commercial properties that were let out alone were subject to service tax under the former tax regime. Even if a residential property is used for business reasons, this rule applies. For commercial properties, a service tax of 15% of the rent was imposed. In addition, rental revenue from residential homes was exempt from service tax.

Who is required to Register when the Property is Rented to Businesses?

A taxpayer who earns more than the exemption amount must register for GST and pay taxes. So, if you’ve given your property to a company, it’s taxable. You must register for GST if you earn more than Rs 20 lakh per year from your business, including rent and any other exempted revenue.

The GST threshold limit for those offering simple services is Rs.20 lakh, which is higher than the Service Tax limit of Rs.10 lakh. Many landlords who were previously subject to the Service Tax regime will now be able to earn an additional Rs.10 lakh.

(Please note that the Rs.20 lakh threshold limit does not apply to special category states, which have a maximum of Rs.10 lakh.) 

How is GST calculated when you rent out a property for commercial purposes?

GST on the rent of commercial property will be charged at 18% on the taxable value of all business spaces that are rented, and rent will be recognised as a taxable supply of service.

GST on rent on commercial property limit (GST on rent limit)– ₹20 Lakhs

What are the ITC provisions when GST is charged on rent?

The person who pays GST on rent can normally use the money to pay his other tax obligations. In other words, ITC on GST paid on rent can be claimed if all of the requirements for claiming ITC are met.

What is the provision for a tax deduction on income tax for the rented property?

The owner of the property (which is rented) is responsible for collecting GST from the renter. This GST will be applied to the rent. From AY 2020-21 onwards, the rent payer must deduct 10% TDS on rent for the property that exceeds Rs.2.40 lakh per year. Both residential and commercial properties are covered by the TDS. TDS will not be subject to GST.

Important Note: The GST on immovable property rent charged by the government or local authority to a registered person would be subject to the Reverse Charge Mechanism. When the property is rented to an unregistered person, however, the government deducts GST (Forward charge mechanism).

GST on Renting an Immovable Property

Before we discuss GST on renting immovable property, certain concepts relating to GST on rent have to be understood. The terms/concept are ‘taxable services under GST’ and ‘place of supply under GST (service)’ –

• Taxable Services under GST – The GST law (Schedule 2 of the CGST Act) states that if an immovable property is rented, it will be treated as a supply of services. But GST on rental properties is only applicable to a certain type of property included under taxable services. They are mentioned below:

1. Any tenancy, easement, lease, license to occupy land
2. Rent or leasing out of an immovable property (building) including a residential complex, commercial or industrial building for business or business purposes, either completely or partially.

(The above-mentioned fall under taxable service, hence, is applicable for payment of GST.)

• Place of Supply of Services under GST – IGST act (Section 12(3)) characterises the place of supply in case of services provided that fall under the immovable property. Therefore, in the event of administrations like giving rights to utilise the immovable property, the spot of supply would be the location of the said property. (For example, Mr A lives in Delhi and owns a property in Hyderabad, which he rents out. Then Hyderabad, where the property is situated, is the spot where GST will be applicable).

GST on Residential Property Rent

GST on residential property rent as per notification no. 12/2017 – Central Tax (Rate), attracts ‘Nil Rate’ of GST. But if the residential property is rented out for commercial purposes, then GST on rent is applicable as the GST on commercial property rent.

Let us say, Mr A owns an apartment and wants to rent it out. He rents it out to a person who uses it as an office for his call centre. Then this property is used for commercial purposes. It will not attract the ‘nil rate’ of GST, which is applicable for GST on rental income from residential property. The GST on residential rental income here will be applicable as the GST on rent paid on commercial property.

GST on Commercial Property Rent

The GST on commercial rent exemption limit has been increased to 20 lakhs than that of 10 lakhs that was applicable in the Pre-GST times. The landlords who were applicable to pay under the Service tax law can now ease a bit as the limit has been pushed up to another 10 lakhs. 

For example, Mr A who lives in Delhi owns property in Hyderabad and decides to rent it out. Now a company XYZ Ltd. rents it out from him and uses it as a guesthouse. Rent per month of the above-said property is Rs. 20,000, this makes the annual rental income of Mr A would Rs. 2,40,000. Therefore, Mr A is not applicable to pay GST on rent paid, as it falls under the limit. GST on rent on commercial property is only applicable if the annual rental income exceeds 20 lakhs.

GST On Renting of Immovable Property for Commercial Purpose

If any immovable property is rented out for a business or commercial purpose, then the Landlord has to be pay GST on commercial rental income. The rate of GST on renting commercial property is 18% on the taxable value. The owner (Mr A) will apply GST on rent and also the division of GST on rent on commercial property in the following manner:

Inter-state Transaction

Monthly rental Income of Mr A	Rs 2,50,000
Addition of IGST at 18%	Rs 45,000
Total Invoice amount	Rs 2,95,000

Intra-State Transaction

Monthly rental Income of Mr A	Rs 2,50,000
Addition of CGST at 9%	Rs 22,500
Addition of SGST at 9%	Rs 22,500
Total Invoice amount	Rs 2,95,000

Therefore, the GST on rental income from commercial property is already applicable. The above charts are just for your understanding that how GST is applicable on rent and the breakdown on GST of rent received by Mr A.

GST on Lease Rent

If you take a property on lease – residentially or commercially, then GST on rent will be charged according to the purpose of your renting the property. If you lease a property for residential purposes then the GST on rent of a residential property is applicable. The GST on renting residential property is ‘nil’. While, if you lease for commercial purposes, the GTS on rent will be 18% of the total amount payable monthly (the GST on rent paid will be added to the amount of the decided price for the lease).

GST Limit for Rental Incomes 

GST has proven to be a fair and structured form of tax evaluation and collection. Below are a few exceptions where GST on rent does not have to be paid:

1. On an immovable property that is used for residential purposes.
2. If the total rental income (commercial) is less than 20 lakhs.
3. If rent is being paid to a registered charitable or religious organisation for the public and –

• rent of the room is charged per day as Rs 1000 or less than that.
• the rent of the shops assigned is charged less than Rs 10,000 monthly.
• the rent of the community hall for a function is charged less than Rs. 10,000.

Maintaining your financial health becomes more complex with additional obligations like GST on rent. If you’re seeking clarity on this subject or have other property-related inquiries, NoBroker’s Legal Services are ready to assist. Our experts are dedicated to providing guidance and support, ensuring you’re well-informed. Should you have any questions, simply drop a comment below, and our team will reach out to help. Explore NoBroker for direct and efficient assistance tailored to your needs.

Frequently Asked Questions

Top 20 Posh Areas in Delhi: Most Expensive & Best Residential Areas in Delhi

South Delhi stands out for its upscale neighbourhoods, such as Lutyen’s Bungalow Zone and Vasant Kunj, attracting affluent individuals and public figures with its promise of superior living standards, safety, and amenities. Securing a home in these areas is challenging and expensive, yet remains a coveted goal for many. The area’s luxury real estate market is buoyed by both individual landowners and specialised developers known for their high-end projects, catering to a discerning clientele. 

The trend of boutique homes, offering unique, luxurious interiors, is on the rise, thanks to easy access to innovative design and materials. Property sizes vary widely, with prices for a 200-sq-yard space potentially reaching up to Rs 3 crores, depending on the location. Additionally, the allure of traditional homes, through renovation or redevelopment, adds to South Delhi’s appeal, with its central location and proximity to the city’s elite driving up property values.

Why Delhi’s Popular Among the Rich and Wealthy

Most of the prominent and posh areas in Delhi are particularly situated in and around South Delhi. Finding a home anywhere in Delhi is no easy task and comes with a rather large price tag. A home in some of Delhi’s most expensive areas such as Lutyan’s Bungalow Zone and Vasant Kunj is an aspiration for most of the youth in the city. Affluent businessmen, new entrepreneurs, public figures and high-earning individuals often seek out addresses in these areas as not just a point of pride but also in search of better quality living, safety and amenities.

Landowners often go through the process of having their dream luxury home themselves. However, there are also developers now that are very well known for their expertise in the luxury home construction industry. In Delhi, these developers often have a niche clientele and with the growth of the city, their clientele only grows.

Additionally, the idea of boutique venues has drawn attention. Despite being present for a very long time, the hospitality industry was the main user of this concept because it calls for specialised design. Today, with the simple accessibility of design concepts and cutting-edge materials, building such boutique homes with a chic atmosphere and individually designed, opulent interiors is a reality. Given that the size of the land varies from 100 to 1,200 square yards, South Delhi is a fairly diverse area in terms of costs. Depending on the locale, a well-built 200-sq-yard floor ought to be accessible for up to Rs 3 crores, notes Jalan.

Traditional homes have also entered the market in south Delhi, either as a result of renovation or redevelopment. Due to the neighbourhood’s charm, central location, established neighbourhood, and proximity to Delhi’s elite, property prices in the area can reach crores.

Prominent and posh areas in South Delhi, like Lutyen’s Bungalow Zone and Vasant Kunj, are highly sought after despite the hefty price tag. Affluent individuals, including businessmen and public figures, aspire to live in these areas for better quality living, safety, and amenities. While some landowners build their luxury homes, specialised developers with niche clientele are thriving. The concept of boutique homes with individually designed interiors is gaining popularity, reflecting the city’s growth. South Delhi offers diverse options with costs varying from 100 to 1,200 square yards. A well-built 200-sq-yard floor in select locales can cost up to Rs 3 crores. Traditional homes, whether renovated or redeveloped, contribute to the charm, central location, and elite proximity, elevating property prices to crores in South Delhi.

20 Most Expensive Posh Residential Areas to Live in Delhi

Delhi is a city known for its embassies, markets, 5-star hotels, and upscale residential areas. Posh areas in New Delhi are highly coveted for real estate investments, featuring a blend of modern and ancient architectural influences. The city’s diverse architecture, from Mughal-inspired domes to European gardens, captivates its population of approximately 3 crores and countless visitors. Despite challenges like the pandemic, property prices in Delhi, especially in South Delhi, continue to rise due to ongoing infrastructure development and amenities. South Delhi, considered amongst the most posh areas in Delhi, boasts well-built public spaces, a rich history, and a deep connection to India’s heritage. Every corner in South Delhi exudes posh charm, making it a top destination in the city. Explore the list of Delhi’s posh localities based on location, current market value, and exclusivity for the best and upcoming posh places in the capital.

1. Lutyens Bungalow Zone

This is undoubtedly among the best places to live in Delhi and arguably the most expensive residential area in Delhi. Lutyens Bungalow Zone tops Delhi’s posh area list, being the home to numerous top-ranking politicians and business tycoons. The entire area was named after the English architect Edward Lutyens, and the colonial name has stayed with the city ever since.

2. Vasant Kunj

Another Delhi expensive area is Vasant Kunj. It is one of the oldest and poshest neighbourhoods in the South Delhi posh area. This South Delhi rich area has great connectivity with other major hubs in the cities and it is the home of a lot of A-list celebrities, bureaucrats and VIPs of Delhi. Vasant Kunj is the best place to live in Delhi, filled with luxury hotels, lavish bungalows, & crowded malls and has some of the best schools and hospitals to boast of. Vasant Kunj is one of the oldest and most famous areas in Delhi and it’s a crowd favourite making it one of the top 10 posh areas in Delhi. Delhi’s first PVR- PVR Priya started in Vasant Kunj and the area has several other pubs, lounges and other such hotspots to cater to the resident’s demands.

3. Golf Links

Another top posh area in Delhi, Golf Links is an extension of the Lutyens Bungalow Zone and has some of the most luxurious real estate in the city. Property rates in Golf links are one of the highest in the country, with some of the luxurious bungalows costing almost Rs 4 lakh/sq. Yard. Golf Links region is centrally located with proximity to other posh areas in south Delhi and houses diplomats and politicians. The area also has some of the most luxurious 5-star hotels in the city and hosts super-elite crowds from all over the world throughout the years. Given the high-class crowd and amenities, Golf Links has rightfully earned the tag of the most expensive place in Delhi.

4. Shanti Niketan

Shanti Niketan is another most expensive areas in Delhi. It is an old and popular Delhi posh colony. It is one of the most sought after posh residential areas in Delhi. It was initially an area where top government officials resided and it has grown out to be a crowd favourite when it comes to real estate investment in Delhi posh area list. Currently, a lot of the city’s elite industrialists and businessmen have properties in this area. Proximity to top schools and other hotspots in the city makes Shanti Niketan a very desirable posh area in South Delhi.

5. Saket

Saket is a posh area in New Delhi and it’s considered the headquarters of the posh South Delhi posh localities. Saket is a popular hub for the younger crowds as it has some of the best malls and lounges the city has to offer. Saket is one of the most sought-after posh areas in Delhi with top schools, hospitals, malls and easy availability of other such public amenities. 

6. Chanakyapuri

Chanakyapuri is also one of the best posh areas in Delhi housing several diplomats and government officials. Chanakyapuri is filled with lush green gardens and colonial-style scenic avenues. The area is filled with cottages and bungalows and has a lot of street shops and markets. It is one of the most preferred luxury residential areas for government officials and white-collar workers. 

7. Amrita Shergill Marg 

Amrita Shergill Marg is a Delhi posh colony on Aurangzeb Road. This region is a high-security zone housing central government ministers, elite industrialists and a few other millionaires. Amrita Shergill was a well-known Indian painter and the region is named after her to honour her. The area has posh and luxurious bungalows with heavy security at all entries and exits. 

8. Jor Bagh

Jor Bagh is located within a walking distance from a lot of historical monuments and has lots of green gardens and hangout spaces. Jor Bagh is one of the most preferred posh areas to live in Central Delhi housing prominent Bollywood celebrities and politicians. Property for sales have saturated in this area and it’s very tough to find a house with rent below Rs. 1 lakh here. 

9. Punjabi Bagh

Punjabi Bagh is one of the affluent and posh areas in West Delhi. The architecture of the house in West Delhi has a slightly different aesthetic than the houses of South Delhi. While South Delhi has spacious Bungalows and sprawling Kothis, west Delhi boasts of luxuriously built independent houses. Punjabi Bagh is the home to a lot of entrepreneurs and rising celebrities and the well-developed residential complexes with proximity to good schools, eateries and markets make this region among the best residential area in Delhi.

10. Hauz Khas

Hauz Khas has emerged as one of the best and most affluent areas in the city with great architecture and modern public amenities. Hauz Khas has great connectivity with prominent areas in South Delhi like Vasant Kunj and Gulmohar Mark. Interestingly, Gulmohar Park is another posh area in New Delhi. This region derives its name from the magnificent Gulmohar trees aligning the avenues. . Coming back to Hauz Khas, the buildings boast of a mix of Islamic architecture with inspiration from modern trends. The markets, cafes and eateries here have emerged as the new hangout spot for the younger, chic crowd. Property rates here have skyrocketed recently with the resident’s upscaling their bungalows. 

Most of the posh localities of the city are built in South Delhi. However, continued investment in development and unavailability of space has allowed other areas in the city to flourish as well. This has given areas like Jankakpuri and Rajouri Garden in the west, Model Town and Civil Lines in the North and phases of Mayur Vihar in the East to emerge as Delhi posh residential areas. Most parts of these areas have been built after careful planning to attract real estate investments and the move seems to be paying off. These areas have emerged as some of the best options to be the best residential areas in Delhi in our Delhi posh area list. Let’s take a look at some of these localities and check out some new posh places in Delhi. 

11. Model Town

Another new addition to the Delhi posh area list, Model Town is one of the most affluent and posh areas in North Delhi. It is very close to popular places like Chandni Chowk, Civil Lines and has great historical significance. It’s one of the first neighbourhoods in Delhi that was developed by a private developer. The DLF group built Model Town in the early 1950s and it became the first elite neighbourhood of India post-independence. 

The model town has luxurious flats and duplexes and houses a lot of prominent government officials and celebrities. This is one of the only few posh areas in Delhi where rent hasn’t soared like in the other parts of the city. 

12. Mayur Vihar

Mayur Vihar is an upscale and posh area in East Delhi. Mayur Vihar is very close to the Yamuna River and gets its name as it used to be the home of peacocks. The beautiful birds can still be seen roaming freely in parts of the area. Mayur Vihar was planned and built over three different phases and hence affordability and convenience are the major driving factors. The area boasts of well-developed residential complexes and public spaces for the resident’s leisure. Mayur Vihar has a lot of crucial infrastructure facilities like hospitals and international schools, making it one of the best residential areas in Delhi. 

13. Rohini

Rohini is a diverse neighbourhood in North-West Delhi. It was built and developed by the Delhi Development Authority (DDA) in the 1980s to provide social infrastructure for all income groups. Constant investment and great opportunities have pushed the quality of houses in the area and it now houses a lot of businessmen and entrepreneurs of the city. Most of the housing complexes in the region are surrounded by lush green gardens and good roads. The area is also a major business hub with markets for granites and marbles. 

Rohini has well-developed entertainment centres, planned houses and public infrastructures making it a very comfortable and posh area to live in. 

14. Green Park

Although Green Park is one of the upscale localities of South Delhi, it took some time for the region to get developed into one of the posh localities of Delhi. Green Park was established in the early 1960s. As the name suggests, the Green Park area has one of the highest green belts in the city. The area has a rich amount of flora and fauna diversification and it is surrounded by the famous Ring Road flyovers. 

Green Park is close to areas like Safdarjung Enclave and Hauz Khas making it a top posh area in Delhi. However, real estate is still a bit cheaper here as compared to other, more developed areas like Golf Links. 

15. Pitampura

Pitampura is one of the most popular and posh areas in North Delhi. Pitampura is one of those posh localities where you can decide the level of convenience based on your budget. The area has a mix of residential Bungalows and flats, offering different income groups to live a lavish life. The area has smooth connectivity by road to other major parts of the city and it is well connected by the Delhi Metro as well. It has good connectivity with the NCR regions of Noida and Gurgaon, making it one of the most well-connected posh areas in Delhi. 

Most of the current residents are white-collar workers or private business owners. Public infrastructure is also well-developed in the area with top schools and hospitals present for the convenience of the residents. 

16. Kirti Nagar

Kirti Nagar is a major interior designing hub and one of the affluent and posh areas in West Delhi. Kirti Nagar is famous as India’s largest furniture market housing luxury furniture makers and remodelers. The area along with its twin region Mansarovar is known for its staggering Kothis and luxurious villas. Kirti Nagar is the home to a lot of private businessmen and the residential complexes are well connected with public infrastructures like schools and hospitals. Kirti Nagar is well connected by the Delhi Metro and it’s one of the major stations under the Delhi Metro Rail Corporation (DMRC) guidelines for changing routes. The residents also have the luxury to enjoy India’s biggest golf course and spend their leisure time in the Country Club. 

17. Vikaspuri

Vikaspuri is one of the affluent and posh areas in West Delhi. The residential complexes are divided into 9 major zones known as blocks. Vikaspuri has wide roads and a lot of greenery and houses some notable celebrities. Indian Batsmen, Virat Kohli’s house has also emerged as a major landmark recently driving the property prices in the area higher. 

Vikaspuri has emerged as a hub or hangout spot for the younger, more sassy generation of the city. The area has a lot of happening cafes and eateries and has local markets and ‘Haats’ to keep the residents entertained. The residential complexes in the area mostly comprise Lavish Bungalows, Kothis and independent houses. 

18. New Friends Colony

New Friends Colony is a Delhi posh Colony situated in the south-eastern parts of the city. The area has some of the top colleges from the South campus in its vicinity so it’s buzzing with college students. There are a lot of low-rise apartment complexes in the area and has great connectivity to the city through Mathura Road. However, traffic congestion in New Friends Colony can be a menace sometimes due to the crowded neighbouring areas. Proximity to the Jamia Millia Islamia University has resulted in a lot of eateries, cafes and street shops in the area to cater to the demands. Property Prices in the area can go as high as Rs. 20 crores for a Bungalow. 

19. Pandav Nagar

Pandav Nagar is a residential colony and posh area in East Delhi. Named after the legendary Indian Mythologies of the Mahabharata, the area is surrounded by the Indraprastha region. The famous Akshardham Temple is just minutes away from the area. The major population of the area comprises government service officials and white-collar workers. The area has some leading business institutes in its vicinity so the availability of affordable housing can be tough. However, Pandav Nagar has a good number of residential complexes catering to different sections of society. The area is popular among Delhiites as Delhi’s first Adventure Park was built in Pandav Nagar. 

20. Dwarka Sub City

When we talk about established, posh residential areas of Delhi, the list is incomplete without Dwarka Sub City. One of the first planned residential sub-cities of Delhi, Dwarka has emerged as a top posh area in Delhi with property prices in the area touching Rs. 30 crores for a luxurious 3 BHK. The area is well connected with metro lines in almost every sector of the sub-city. Dwarka has some of the best residential complexes and apartments in the city and houses a very large population of different diversity. The Delhi Development Authority (DDA) has taken a special interest in redeveloping the Dwarka sub-city and establishing it as one of the best residential areas in Delhi. Most of the residential complexes are apartments and independent builder floors. 

Most of these posh areas in Delhi are located in the Southern parts of the city. South Delhi is comparatively more developed than other parts of Delhi with popular entertainment hubs and well-maintained public infrastructures. However, the growing population and the unavailability of suitable land parcels to cater to the need had led to investments in other localities of the cities as well. Localities in West Delhi have emerged to become one of the best residential areas in Delhi and have great demand when it comes to real estate development. Whereas, planned townships in the Eastern and Northern limits of the city have given way for more posh places in Delhi. If you want to experience the taste of luxury and stay in one of these posh pin codes, just head to NoBroker. NoBroker has thousands of properties in these pin codes, available for renting and buying. Choose your dream house in the poshest area in Delhi and save big with Zero Brokerage. Click here and start browsing for your dream home. 

FAQ’s

Rental Agreements in India: Key Insights for Tenants & Landlords

In a world where buying property is no longer an option unless you’ve saved for more than your lifetime, renting has become the next best thing. A rental agreement is important for people who are looking to rent their properties, for people who are looking into renting a property and of course, anyone looking for a mode of shelter in a big city. Now, what exactly is a rent agreement?

What is a Rental Agreement?

 A rent agreement is a legal contract that is made between the landlord of the property and the tenant who wishes to live there. Interestingly enough, it is one of the legal documents we don’t pay much attention to, but we should. 

The agreement is a crucial legal document/contract which includes all the information, terms, conditions and clauses that come along with letting out a property on rent. It consists of components like security deposits, your monthly rent, information regarding the property, like size, address, type and of course the duration of the agreement. It is of utmost importance that you go read carefully the rent agreement, rules and clauses, before signing it. 

For the majority of the population who had dealt with properties or rent, it hasn’t always been smooth sailing, there’s always some instance or experience that led to some bumps along the way, and this has the possibility of causing friction in the tenant-landlord relationship. That’s why it is important to work on a rental agreement with both parties, to avoid any issues along the way. 

According to the Registration Act of 1908, the registration of a rent agreement is of crucial importance if the renting period is more than 12 months. The agreement is important for both the person renting and the landlord as it brings about a property safeguard for the landlord, as well as protects the tenants from dealing with any illegitimate demands by the landlord.

The Process of Preparing a Rent Agreement

It is mandatory to register a rent agreement in India for anyone to reside – be it owners/landowners or tenants looking for a place to stay – residential or commercial or otherwise. Below are the steps involved in registering a rental agreement in India. Note that it is important for rent agreements of more than a year to be registered, and for agreements that are less than a year (i.e. less than 11 months), ensuring that it is notarised by a public notary along with stamp duty is good enough to become credible.

• Prepare an outline of a rent agreement with the preferable clauses related to rent and security deposit
• Get the rental agreement printed on stamp paper with an assigned value 
• Get the signature of both the tenant and landowner on the designated places of the rental agreement
• Along with the tenant and landowner, visit the sub-registrar’s office at the relevant sub-localities
• Carry a copy of the passport-size photographs and ID cards for individual verification and validation
• As soon as the stamp duty is paid, the registration of the rent agreement is completed. The charge typically is about Rs 1100, regardless of the property value or rental amount

How to execute a valid rental agreement?

1. Registration of rent agreement

1. A rent agreement must be registered by the Registration Act of 1908 if it lasts for a period longer than 12 months.
2. There is no necessity to register the rental agreement, nevertheless, if the term is less than 12 or 11 months.
3. Writing and signing the agreement on stamped paper will be legal in this situation.

2.  Rental agreement for less than one year

1. The rental agreement must be printed on stamp paper received from the sub registrar’s office of the location where the property is located in the period of the agreement is less than one year.
2. By selecting the ‘Download’ option at the top of this page, you may download a sample rental agreement that needs to be printed on stamp paper.
3. The owner and tenant must both sign at the bottom of each page of the stamped paper once the rental agreement has been printed on it.
4. The agreement must be signed by two witnesses as well as their names and addresses to be legally binding.

3. Rental agreement for 12 months or more

1. The rental agreement must be printed on stamp paper and registered with the Sub-office Registrars of the region where the rented property is located if the agreement’s duration is 12 months or more.
2. By selecting the ‘Download’ option at the top of this page, you may download a sample rental agreement in India that needs to be printed on stamp paper.
3. In the presence of the Registrar, they must sign the agreement at the bottom of each page of the stamp paper on which it is printed.
4. The stamp paper must be signed by two witnesses and registered when the necessary payments have been made. 

Benefits of Online Registration of Rent Agreement

Here are some of the benefits of registering of rent agreement online:

• Convenience: Online registration allows landlords and tenants to complete the process from the comfort of their homes or offices, eliminating the need for physical visits to government offices. This convenience is particularly helpful for those who have busy schedules or live far from registration offices.
• Time-Saving: Online registration can expedite the process, reducing the time required for document submission, verification, and approval. It can significantly cut down on the administrative delays associated with manual processes.
• Reduced Administrative Hassles: Online registration minimises paperwork and manual record-keeping. This can help reduce errors, enhance accuracy, and simplify the overall process.
• Transparency: Online platforms often provide clear guidelines and instructions for completing the registration process. This transparency helps users understand the steps involved and the documents required.
• Document Security: Online platforms usually employ secure encryption and authentication methods to protect sensitive information and documents. This can help prevent tampering, loss, or misplacement of documents.
• Verification: Online registration typically involves thorough verification of the provided information, which can help reduce the chances of fraudulent agreements. Verification can include checks on identity, property details, and other relevant information.
• Remote Access: Online registration allows parties involved in the rental agreement to access and review the agreement details remotely. This is especially useful if the landlord or tenant is not located in the same city or area.
• Legal Validity: Online registered rent agreements have the same legal validity as traditionally registered agreements. This provides a sense of security to both landlords and tenants in case of any disputes or legal issues.
• Electronic Copies: Online platforms often provide the option to download and print electronic copies of the registered agreement. This can be useful for record-keeping and future reference.

Important Documents Needed for a Rental Agreement Registration & Stamp Duty

The registration process needs the Following Documents

The following are the important documents needed for a rental agreement registration in India:

1. Original proof of ownership or title of the property. This could be a sale deed, lease deed, or any other document that shows that the landlord is the legal owner of the property.
2. Property documents such as Index II or tax receipt of the property to be leased.
3. Two photographs of each of the parties and one of each of the witnesses.
4. Copy of the address proof of both the parties and witnesses. Any of the following documents can be submitted as the address proof: passport, Aadhaar card, ration card, bank passbook or driving license.
5. Route map of the property leased out.
6. Stamp paper of the appropriate value. The stamp duty payable for a rental agreement varies from state to state. You can check the stamp duty rates for your state on the website of the Ministry of Finance.
7. Registration fee. The registration fee is also payable to the sub-registrar’s office. The amount of the registration fee varies from state to state.

Read: Make A Free Listing Or Free Ad For Your House & Apartment Up For Rent

How Much Does a Rent Agreement Cost?

The cost of a basic rental agreement in India can vary depending on the state, the city, the property type, and the duration of the agreement. However, in general, the cost of a rent agreement is made up of two components:

Stamp duty: This is a government tax that is charged on all legal documents, including rent agreements. The stamp duty rate varies from state to state, but it is typically between 0.5% and 2% of the annual rent.

Registration charges: This is a fee that is charged by the government for registering a rent agreement. The registration charges also vary from state to state, but they are typically between Rs. 500 and Rs. 1000.

Difference Between Lease and Rent Agreement

If you’d like to know about the lease vs rent agreement, the primary difference is the period covered by the contract. While a rent agreement tends to cover a short period i.e. a month, 6 months, 12 months, and even 18 months, a lease contract applies to much longer periods such as 99 years. Both have several similarities as well including specified security deposit, rental amount, utility and maintenance costs and responsibilities, rules of usage, allowance of pets, etc. 

11 Months Rental Agreement Format

When a rental agreement is created for a fixed time, all the pre-discussed terms and conditions are mentioned within the format. An 11-month rental agreement format in Word for example, looks like something below, encapsulating everything from who the agreement is executed by, the day on which it is executed, the details of the tenants and landlord, the rent decided, to the purpose of the use of the property as well as the notice period for both tenant and landlord to vacate the premises.

Registered Rent Agreement Format

As mentioned before, the registered rent agreement format includes both the details of the tenant and landlord, the terms and conditions of the rental arrangement, as well as the mention of the duration i.e. more than 11 months within the agreement. You will also need to have a notarised signature by the public notary as well as a stamp paper to add credibility to the registration. A registered rent agreement format, for example, looks like something below:

Rent Hike Process and Limitations

• Rent hikes are a common occurrence in the Indian rental market. The landlord has the right to increase the rent after the end of the lease period, subject to certain limitations. Here are some essential things that both landlords and tenants should know about the rent hike process:

• Legal Limitations: As per the Rent Control Act, landlords cannot increase the rent arbitrarily. The maximum rent increase that a landlord can ask for is 10% of the current rent. However, if the landlord has carried out any repairs or renovations to the property, they can charge an additional amount.

• Notice Period: The landlord must give the tenant a notice period of 30 days before increasing the rent. The notice should be in writing and should specify the new rent amount.

• Negotiation: If the tenant is not willing to pay the increased rent, they can negotiate with the landlord. If an agreement is not reached, the tenant can choose to vacate the property.

• Market Trends: The rental market is subject to fluctuations, and landlords can increase the rent in response to market trends. However, they cannot increase the rent during the lease period.

Steps to Follow for Rent Hike:

1. Check the Rent Control Act to understand the legal limitations on rent hikes
2. Decide on the new rent amount and the notice period that you will give the tenant
3. Inform the tenant of the rent hike in writing and give them the required notice period
4. Be prepared to negotiate with the tenant if they are not willing to pay the increased rent

Commercial Rental Agreement India Format 

Essentially, a commercial rental agreement or a lease contract forms a legally binding covenant between the business tenant and the owner of the commercial property. So if you want to rent an office space for your new startup or move to a bigger place for a longer contract period, you must create a commercial rental agreement in the process. The sample below will give you a fair idea about the office rent agreement format or even a rent agreement format for shops. 

The commercial rental agreement will also include several details or covenants between the tenant and the landowners including:

• The payment of rent and the frequency of payment every month/year
• The payment of electricity and utility bills within the office
• The instruction that any structural alterations cannot be made upon the rented premises without the consent of the owner
• The instruction that no one should suffer from the work done at the office due to noise or annoyance
• The instruction that no illegal activities or elicit businesses can be conducted on the premises
• The instruction to not sublet the premises to anyone else
• To replace all broken fixtures and fittings etc. over the lease period. 
• The notice period for vacating the premises and the conditions of carrying out the necessary repairs etc within the notice period 

Rental Agreement Format in English

Here is a sample of a rental agreement in English, for any reference in the future for your rental needs. You can also find several rooms, house, tenant agreement formats on the internet, for more insight, under names like- house rental agreement in English, pdf or word and so on. Be sure to include the relevant specific details in the blank spaces and ensure they are notarised by a public notary.

This Rent Agreement is made on this __________ (date of rent agreement) by ________________ (name of the landlord) S/o _______________ (father’s name of the landlord), Add: ___________________________________________________ (residential address of the landlord). Hereinafter called the Lessor / Owner, Party Of the first part

AND

_____________________________ (Name of the proposed company), through its proposed director __________ (name of the director) called Lessee/Tenant, Party of the Second Part

That the expression of the term, Lessor/Owner and the Lessee/Tenant Shall mean and include their legal heir’s successors, assigns, representatives etc. Whereas the Lessor /Owner is the owner and in possession of the property No: ______________

_________________________________________________________________________________ (registered address of the company) and has agreed to let out the one office Room, one Toilet & Bathroom Set on said property, to the Lessee/Tenant and the Lessee/Tenant has agreed to take the same on rent of Rs. ______/- (In words) per month.

NOW THIS RENT AGREEMENT WITNESSETH AS UNDER:

1. That the Tenant/Lessee shall pay the monthly rent of RS. _________/- (In words) per month, excluding electricity and water charges.
2. The Tenant /Lessee shall not sublet any part of the above-said demised premises to anyone else under any circumstances without the consent of the Owner.
3. That the Tenant / Lessee shall abide by all the bylaws, rules, and regulations, of the local authorities in respect of the demised premises and shall not do any illegal activities in the said demised premises.
4. This Lease is granted for a period of Eleven (11) months only commencing from ___________ (date of rent commencing from) and this lease can be extended further by both parties with their mutual consent based on the prevailing rental value in the market.
5. That the Lessee shall pay Electricity & Water charge as per the proportionate consumption of the meter to the Lessor /Owner.
6. The Tenant/Lessee shall not be entitled to make structure in the rented premises except for the installation of temporary decoration, wooden partition/ cabin, air – -conditioners, etc. without the prior consent of the owner.
7. That the Tenant/lessee can neither make addition/alteration in the said premises without the written consent of the owner nor the lessee can sublet part or entire premises to any person(s)/firm(s)/company(s).
8. That the Tenant/Lessee shall permit the Lessor/Owner or his Authorised agent to enter into the said tenanted premises for inspection/general checking or to carry out the repair work, at any reasonable time.
9. That the Tenant/Lessee shall keep the said premises in clean & hygienic condition and shall not do or cause to be done any act which may be a nuisance to others.
10. That the Tenant/Lessees shall carry on all day-to-day minor repairs at his/her own cost.
11. This Agreement may be terminated before the expiry of this tenancy period by serving One-month prior notice by either party for this intention.
12. That the Lessee shall use the above-said premises for Official Purpose Only.
13. That the Lessee/Tenant Shall not store/Keep any offensive, dangerous, explosive or highly Inflammable articles in the said premises and shall not use the same for any unlawful activities.
14. That the Lessee shall pay the one month’s advance rent to the Lessor the same shall be adjusted in monthly rent.
15. That both the parties have read over and understood all the contents of this agreement and have signed the same without any force or pressure from any side.

In WITNESS WHEREOF the lessor/Owner and the Tenant / Lessee have hereunto subscribed their hand at ______ (place) on this the _____________ (date of rent agreement) year first above Mentioned in presents of the following Witnesses. 

WITNESSES

1.

2.

___________ (name of the landlord) _________________ (name of the proposed Company)

Lessor Lessee             

Rental Agreement Format in Hindi

यह रेंट एग्रीमेंट ________________ (मकान मालिक का नाम) S / o _______________ (जमींदार के पिता का नाम), _________________________________________________________ (मकान मालिक का आवासीय पता) द्वारा इस __________ (किराए के समझौते की तारीख) पर बनाया गया है। इस प्रकार एफेट्रस भाग के लेसर / मालिक को पार्टी कहा जाता है

तथा

_____________________________ (प्रस्तावित कंपनी का नाम) , अपने प्रस्तावित निदेशक के माध्यम से __________ (निदेशक का नाम) जिसे लेस / टेनेंट कहा जाता है, पार्टी ऑफ़ द सेकंड पार्ट

शब्द की अभिव्यक्ति, लेस्सर / मालिक और लेस / टेनेंट शेल का मतलब है और उनके कानूनी उत्तराधिकारी उत्तराधिकारी, असाइन, प्रतिनिधि आदि शामिल हैं, जबकि लेसर / मालिक मालिक है और संपत्ति के कब्जे में है: ______________

_________________________________________________________________________________________ (कंपनी का पंजीकृत पता) और लेसियन / टेनेंट के लिए एक कार्यालय कक्ष, एक शौचालय और स्नानघर सेट को बाहर जाने के लिए सहमत हो गया है, पट्टेदार / किरायेदार और पट्टेदार / किरायेदार ने रुपये के किराए पर समान लेने के लिए सहमति दी है ______ / – (शब्दों में) प्रति माह।

अब इस समझौते के रूप में इस किराए पर लेने की आवश्यकता है:

1. कि किरायेदार / पट्टेदार बिजली और पानी के प्रभार को छोड़कर, प्रति माह _________ / – (शब्दों में) के मासिक किराए के रूप में भुगतान करेंगे।
2. टेनेंट / लेसी उप-स्वामी को उपर्युक्त के किसी भी हिस्से को किसी भी परिस्थिति में मालिक की सहमति के बिना किसी भी स्थिति में उप-नहीं करेगा।
3. यह कि किरायेदार / पट्टेदार सभी उप-कानूनों, नियमों और विनियमन का पालन करेंगे, स्थानीय अधिकारियों के लिए निर्धारित परिसर के संबंध में और उक्त निर्धारित परिसर में कोई भी अवैध गतिविधियां नहीं करेंगे।
4. यह लीज केवल ग्यारह (11) महीने की अवधि के लिए दी जाती है, जो केवल ___________ (किराए पर लेने की तारीख) से शुरू होती है और इस पट्टे को बाजार में प्रचलित किराये के मूल्य के आधार पर अपनी आपसी सहमति से दोनों पक्षों द्वारा आगे बढ़ाया जा सकता है। ।
5. कि पट्टेदार / मालिक को मीटर की आनुपातिक खपत के अनुसार बिजली और जल प्रभार का भुगतान करेगा।
6. कि किरायेदार / पट्टेदार किराए के परिसर में संरचना बनाने के हकदार नहीं होंगे, केवल अस्थायी सजावट, लकड़ी के विभाजन / केबिन, एयर – कंडिशनअपसेट की स्थापना को छोड़कर। मालिक की पूर्व सहमति के बिना।
7. यह कि किरायेदार / पट्टेदार स्वामी की लिखित सहमति के बिना उक्त परिसर में न तो जोड़ / परिवर्तन कर सकता है, और न ही पट्टेदार किसी भी गड़बड़ी (फर्मों) / फर्म (एस) / कंपनी (ओं) को भाग या पूरे परिसर को सौंप सकता है।
8. यह कि किरायेदार / पट्टेदार किसी भी उचित समय पर निरीक्षण / सामान्य जाँच के लिए या मरम्मत के काम को करने के लिए लेसर / मालिक या उसके अधिकृत एजेंट को उक्त किरायेदार परिसर में प्रवेश करने की अनुमति देगा।
9. कि किरायेदार / पाठी उक्त परिसर को स्वच्छ और स्वच्छ स्थिति में रखेगा और ऐसा कोई कार्य नहीं करेगा या करने का कारण नहीं होगा जो अन्य के लिए एक उपद्रव हो सकता है।
10. कि किरायेदार / पट्टेदार पूरे दिन अपनी मरम्मत के लिए मामूली मरम्मत का काम करेंगे।
11. कि इस आशय के लिए किसी भी पक्ष द्वारा एक महीने पहले नोटिस देकर इस किरायेदारी की अवधि समाप्त होने से पहले इस समझौते को समाप्त किया जा सकता है।
12. पट्टिका आधिकारिक प्रयोजन के लिए उपर्युक्त परिसर का उपयोग करेगी।
13. यह है कि पट्टेदार / किरायेदार किसी भी आक्रामक, खतरनाक, विस्फोटक या अत्यधिक भड़काऊ लेखों को संग्रहीत नहीं करेगा / करेगा और किसी भी गैरकानूनी गतिविधियों के लिए उसका उपयोग नहीं करेगा।
14. कि पट्टेदार को एक महीने का अग्रिम किराया चुकाना होगा, वही मासिक किराए में समायोजित किया जाएगा।
15. कि दोनों पक्षों ने इस समझौते की सभी सामग्रियों को पढ़ा और समझा है और बिना किसी बल या दबाव के किसी भी पक्ष से हस्ताक्षर किए हैं।

निम्नलिखित में, साक्षी / मालिक और किरायेदार / पट्टिका ने अपने हाथों को ______ (स्थान) पर इस _____________ (किराया समझौते की तिथि) पर सदस्यता दी है, जो निम्नलिखित गवाहों के प्रस्तुतिकरण में उल्लेखित है।

विटनेस: –

1।

2।

___________ (मकान मालिक का नाम) _________________ (प्रस्तावित कंपनी का नाम)

Types of Rent Agreement in India 

There are 2 types of rental agreements in India. The first one is a rent agreement that lasts for a minimum of 12 months. This comes under Rent Control Laws put up by the State government. The second one is a rent and license agreement of up to 11 months which doesn’t fall under the Rent Control Laws.

Registered Rent Agreement VS Notarised Rent Agreement

Aspect	Registered Rent Agreement	Notarised Rent Agreement
Process	Signed by both parties, then submitted to the Government’s Registrar’s Office for registration.	Attested by a public notary to verify the identities of both parties.
Authority	Conducted by the office of the Sub Registrar for the specific area.	Conducted by a public notary.
Presence of Parties	Both landlord and tenant must be present during the execution.	Both landlord and tenant must be present during the execution.
Document Access	Becomes a public document accessible for legal procedures.	Not a public document, access is limited to involved parties.
Notary’s Role	A public notary’s involvement is not required.	A public notary attests to the identities of the parties.
Notary’s Verification	Not applicable.	A notary verifies identities, not the entire contract.
Notary’s Stamp/Seal	Not applicable.	The notary provides a stamp, seal, and signature on the last page.
Legal Validity	Has legal validity due to registration with the government.	Has legal validity, but is limited to notarisation verification.

Things to Keep in Mind While Making a Rental Contract

When dealing with rental agreements in India, there are several key considerations to keep in mind to ensure a smooth and legally sound renting experience. Here are eight important points to remember:

1. Clarity is Key: Ensure that the rental agreement is clear and concise, leaving no room for ambiguity. Both parties should fully understand their rights, responsibilities, and obligations.
2. Thorough Documentation: Gather all necessary documents, including proof of ownership, identification, and address proofs, to facilitate the registration process and validate the agreement’s authenticity.
3. Legal Compliance: Adhere to the legal requirements of the Registration Act, especially for agreements lasting more than 12 months. Properly registered agreements offer legal protection and prevent disputes.
4. Understand Rent Calculation: Have a clear understanding of how the rent is calculated, including any potential increases due to repairs or renovations. Transparency in rent calculations can prevent conflicts later on.
5. Deposit Handling: Clearly outline the terms related to the security deposit. Understand the conditions under which the deposit will be refunded or used for repairs and damages.
6. Stay Updated: Keep yourself informed about local rent control laws and regulations. Being aware of your rights and limitations can help you make informed decisions throughout the renting journey.

Rent Agreement: Important Terms and Conditions for Tenant and Landlord

Renting a house in India comes with a set of rules that both landlords and tenants need to abide by. The rental agreement is a legally binding document that outlines the terms and conditions of the tenancy. Here are some essential terms and conditions that both parties should be aware of:

Read: Make A Free Listing or Free Ad for Your House & Apartment Up for Rent

• Parties to the Agreement: Identify the landlord (property owner) and the tenant (person renting the property) by their full names and addresses.
• Property Details: Provide a detailed description of the rented property, including its address, type, size, and any unique features.
• Term of the Lease: Clearly state the start date and the duration of the lease (usually expressed in months or years). Also, mention the process for lease renewal or termination.
• Rent Amount and Payment Terms: Specify the monthly rent amount, due date, and acceptable methods of payment. Mention any late payment charges and the consequences of repeated non-payment.
• Security Deposit: Explain the purpose of the security deposit, the amount, and the conditions under which it will be refunded or used for repairs/damages.
• Utilities and Maintenance: Clarify which utilities (water, electricity, gas, etc.) are included in the rent and which are to be paid separately. Define responsibilities for property maintenance and repairs.
• Use of the Property: State whether the property will be used for residential or commercial purposes. Outline any restrictions on alterations, subletting, or unauthorised occupants.
• Tenant Responsibilities: Detail tenant obligations such as keeping the property clean, adhering to society rules, and not causing disturbances to neighbours.
• Landlord Responsibilities: Enumerate the landlord’s responsibilities, including providing habitable living conditions, addressing repairs, and respecting the tenant’s privacy.
• Termination and Notice Period: Specify the notice period required for both the landlord and tenant to terminate the agreement. Also, outline the conditions under which the landlord can terminate the lease.
• Entry and Inspections: Explain the circumstances under which the landlord can enter the property (e.g., for repairs) and provide notice requirements.
• Renewal and Changes: Describe the process for lease renewal, potential rent adjustments, and any changes to the terms of the agreement.
• Legal Actions and Dispute Resolution: Outline the procedures for resolving disputes, including mediation or legal actions, and specify the jurisdiction where disputes will be addressed.
• Force Majeure Clause: Consider including a clause that addresses unforeseen events (such as natural disasters) that may affect the rental arrangement.
• Governing Law: Mention the applicable laws and regulations that govern the rental agreement, typically based on the state or union territory.
• Signatures and Witnesses: Include spaces for the signatures of both parties and any witnesses. Signatures validate the agreement’s authenticity.
• Pet Policy: The rental agreement may specify whether or not pets are allowed on the property, and if so, what type of pets and how many.
• Parking policy: The rental agreement may specify whether or not parking is available on the property, and if so, how much it costs.
• Move-in and move-out procedures: The rental agreement may specify the procedures for moving in and moving out of the property, such as when the tenant must give notice and when the landlord must return the security deposit.

NoBroker Rental Agreement Services: If you are a landlord or a tenant, NoBroker offers a hassle-free way to create a rental agreement. Our rental agreement format is legally binding and includes all the essential terms and conditions that you need. You can also customise the agreement to suit your specific requirements.

How Can NoBroker Help?

The process of renting a place isn’t an easy one, but with a few legal steps and a little patience, two witnesses and a good landlord, and us! NoBroker will help you get a rental agreement from the comfort of your home! Just visit the link below, and you can get your rental agreement home delivered! You can even drop us a comment below with any questions and we’ll be happy to help.

The process of renting a place isn’t an easy one, but with a few legal steps and a little patience, two witnesses and a good landlord, and us!  NoBroker will help you get a rental agreement from the comfort of your home! Our user-friendly platform simplifies the process, addressing potential hurdles with ease. 

Frequently Asked Questions

How to Rent Your Commercial Property to a Big Franchise

If you’re wondering why people invest in commercial real estate, what is commercial real estate, why it is important to rent to the right business, or how I want to rent my shop to a franchise, this article will give you the answers you seek. You will also learn about how to rent out commercial property to a big franchise and how to keep your rental income coming in.

What is Commercial Property?

Residential property is when people buy property to reside, commercial property is any property that is used for any business activity. It is considered as any building that can generate profits and is bought or used with the intent to generate a profit. As commercial property is profit-driven, there are different rules and laws that have to be followed when dealing with commercial property. when using a commercial space for rent.

What are the Different Types of Commercial Real Estate You Can Invest in?

Why do People Choose to Invest in Commercial Real Estate?

Many people prefer to invest in residential property because that is more easily available, and it is considered less risky. But, if you know what you’re looking for, do the required research and choose to invest in commercial property, you are likely to make a much higher profit than those who invest in residential property. But you should keep in mind that it also involves a higher initial investment than residential real estate. Even the property tax on commercial vs residential properties will vary and each would come with its own benefits and demerits.

What is a franchise lease?

Wanting to rent your property to a franchise is not hard to do. All leases, sublet agreements, and other arrangements or Contracts under which the Company or any of its Subsidiaries has granted a Franchisee the right to lease, use, or occupy any Real Property are referred to as Franchise Leases. Despite the preceding, any Franchise Agreements are not included in the term “Franchise Leases.” Regardless of the franchise lease arrangement of the property, you are responsible for the lease or rent. As a result, you should be aware of the various levels of control and obligation you will have if you choose the franchisor’s lease option.

How to Get a Big Franchise to Rent this Property?

Can I Rent out my Commercial Property to Small Business too?

Yes, not everyone needs to rent or lease property to large franchises. You can look at the small, medium, and large businesses, it all depends on the space you have and if your requirement can meet their requirement. Most investors look for large brands and franchises so that they are guaranteed an income, the business is reputed and won’t skip out on paying rents, the business will honour their commitment and so on. This does not mean that other businesses will skip out on payments, as long as you have a good, air-tight, lease agreement and have done the required due diligence.

If you need any assistance finding the right commercial property or finding the right buyers or tenants for your commercial property, just contact NoBroker. We have experts who will help you with your requirement. You can click the link below to rent out your commercial property on NoBroker.

How can I give my shop on rent to some bank for ATM?

If you have a recurring thought of – I want to rent out my commercial property in India, then giving your property to a bank to install an ATM is an excellent method to make money without putting in a lot of effort. Giving your commercial property to the bank for ATM installation can earn you up to 1 lakh rupees per month.

Bank Requirements for ATM Installation in a Building

• All financial debts on the property should be paid off.
• The property should be in a business district or a densely populated residential neighbourhood.
• The city municipal authority must provide you with permission to construct an ATM.
• A property’s surface area should be between 60 and 100 square feet.

Steps to Give a Commercial Property to Rent for the Installation of an ATM 

• If you wish to rent out your property for a bank installation, you should keep an eye on the bank’s online and offline adverts, such as those in daily local publications. The use of print advertisements to obtain a property is a method that is still widely used in banks. As a result, keep an eye out for bank commercials. You can come across a bargain without even looking for one.
• Along with this, you can go to other banks.
• You must first schedule an appointment with the branch manager.
• Visit the bank with the property documentation and approval from the municipal authorities after your meeting has been scheduled.
• Now, wait for the approval.

How to Rent My Property to a Company?

Corporate housing has gained popularity in the recent few years. A concept in which a furnished home is rented to a company rather than an individual, with all of the amenities and services of a hotel but without the housekeeping. This type of property is utilised to accommodate personnel of a firm who are visiting the city for 10 days or more.

In the case of corporate housing, the property is rented by an organisation, and any employee on a business trip to the city is welcome to stay there. The company can pick whether administrative staff or blue-collared employees live there, depending on what you offer in the property, its size, and its location.

Can you lease a property to yourself?

There is a yes or no answer to this question with a lot of terms and conditions. If you are a business owner, you can lease the property to your own firm. This ensures your continuous access to both work and property. You can also lease your own home, but there are various regulations that need to be followed.

Is it better to lease or buy commercial property?

A common question in the real estate market is – Is it better to rent or buy a shop? The answer to this depends on varying reasons which again may be different for all.

Reasons to Think About Leasing

• There are a number of reasons why leasing a commercial property can be a better option for your company, including:
• Your company is expanding, and you’re unsure how quickly you’ll overrun the space.
• You’re short on cash and can’t afford a down payment.
• Your business is still in its inception and is still in the “building phase.”
• Your company is new to a market area, or your client base is concentrated in a small geographic area, and the only way to keep customers is to lease.
• You have a tight deadline and require a structure right away.
• You are offered reasonable lease conditions.

Reasons to Think About Buying

However, there are situations where owning the property is a better fit for your company, such as when:

• You’re accumulating long-term wealth and equity.
• Many small businesses can buy a property with a 10% down payment and with help of loans from the bank.
• If your firm fails, closes, or you want to sell it, you have real estate to fall back on, or you may rent it out to renters.
•  You may be eligible for certain tax benefits.

Posting your Ads on social media

The digital age and the pandemic have been a time where you will find very few people who are not using social media. Today, even more than advertisements on billboards on the roads, a far more effective way to ensure more people know about your ads on social media. So, while you may already be going for an ad on high-traffic areas of a locality or sticking bills on walls or more, be sure to also explore social media platforms such as Instagram, LinkedIn, Facebook etc. It is very easy to use and can also show very detailed information about the number of people, the demographics of people, as well as the locations from where people are viewing your ads.  Ensure that you use eye-grabbing images and video walkthroughs to give a detailed tour and information about your property to stand out from the competition.

Setting up a Network through Commercial Real Estate Associations

Joining a commercial real estate organisation is one of the best ways to broaden your network. By giving you access to franchise owners, resources, and continuing education opportunities that you would not otherwise have, it might also aid in building your credibility as a commercial real estate owner. It gives the idea that you are more established than someone who is not a member to prospective franchise owners if you are a member of one of the commercial real estate owners’ organisations.

Make Use of Billboards

One of the most noticeable ways to promote your commercial real estate campaign is the billboard, which is frequently disregarded. If you choose to use this tactic, keep your billboard advertisement straightforward and include a catchy commercial real estate tagline as well as clear descriptions of the benefits you are offering a potential franchise buyer. Your contact information ought to be written in clear, large text that can be seen from the side of the road.

A decent commercial real estate billboard shouldn’t be overcrowded with images, logos, fonts, or vivid colours. Select a clear image to go with a few lines of text in two or three complementary colours.

Provide 3D Virtual Tours to Potential Customers

Future marketing for commercial real estate might benefit from 3D virtual tours. These tours are especially useful for franchise owners who might not be able to personally travel to a location before opting to settle there. You will have an advantage over the competition if you use a 3D tour. Contrary to popular belief, using a spherical camera on a tripod is really simple. Place it where you want it to go, then use an app on your phone to turn it on.

Commercial real estate marketing doesn’t have to be a bother. You will be on your way to a consistent flow of new commercial real estate buyer leads as long as you keep your message succinct and interesting.

Hire a Commercial Real Estate Expert

Commercial real estate brokerages solely deal in leasing and selling commercial real estates, such as office, retail, and industrial premises.

Commercial real estate brokers are required by their contractual responsibilities to you to charge a percentage of the total lease amount. Therefore, you won’t have to pay them until after the lease is over. You might not be required to make any of these payments until you get money, depending on how they are set up. It is not the most common option, but you can avoid being out of pocket by paying half of the fee at lease execution after collecting the first month’s rent and security deposit and the other half at the beginning of the rent.

What is the Best Way to find Commercial Real Estate?

FAQs

TDS on rent: Section 194I, Meaning, and Important Pointers to Know

Understanding the various rules regarding different taxes that we pay can be time-consuming and confusing for anyone. With every new amendment, the tax regulations change and this holds true even with certain taxes that were implemented to deduct them directly from the source of income. These taxes are called TDS (Tax Deducted at Source) and one of the major sub-parts of this tax is the TDS on rent. Not only on rent but tax is deducted at source while selling the property as TDS on sale of property. Collected at the direct source from where the person’s income is generated, the TDS can be levied on different types of income, and in this blog; we shall understand the key aspects of the tax to clarify any doubts that the reader may have about TDS deduction on rent. Keep in mind that the rate of TDS remains set throughout the fiscal year i.e. from 1st April to 30th March. So, if any changes were made to this, they would be announced in the annual budget.

What is TDS?

The full form of TDS is Tax Deducted at the Source (of Income) and it was introduced to curb tax evaders in specific instances. If we go by the official definition of TDS, it says that the taxpayer is liable to remit the tax to the account of the central government by immediately deducting the tax at the time source. The rule also states that the person whose income tax has been deducted right at the source is entitled by law to receive a credit of the amount as per the TDS certificate or Form 26AS. Now that the true meaning of TDS is clear, let us take a look at the important aspects of TDS on rent payments.

What is the TDS on Rent of Property?

The word ‘rent’ in terms of a monetary transaction is any payment that has taken place between two or more parties under any lease, or an agreement to use any land, apartment, building, equipment, furniture, machinery, etc by paying the owner the stipulated amount. The Finance Act, 1994 added to Sec. 194-I means that the Government felt the need to include TDS on house rent and this has been common practice for many countries.

What is HUF?

The abbreviation HUF stands for Hindu Undivided Family. A Hindu undivided family, or HUF, is a family that includes all members descendants from a single ancestor, as well as their spouses and unmarried daughters, according to Hindu law. A HUF is a status symbol that is neither a product of law nor a contract. When two people marry and create a family, a HUF is formed automatically. HUFs can be formed by Hindus, Sikhs, Buddhists, Jains, and others.

TDS Rent Deductions by Individuals and HUFs

The government has enlarged the extent of the TDS applicable on rent in order to bring more individuals into the tax net. This will apply to all individuals and HUFs not covered by the present provisions. If the amount of rent paid for each month or portion of a month is more than Rs 50,000, each individual and HUF will be required to deduct tax at the source at a rate of 5%.

Individuals or HUFs who are not occupying a property for business purposes are required to deduct 5% of the rent if the rent paid exceeds Rs.50,000 per month. In the case of companies, associations, firms or trusts that are occupying a property for the purpose of conducting business and their accounts have been audited, it is necessary to deduct 10% of the rent as TDS. This is contingent upon the criteria that the aggregate rent already paid or to be paid for the year is more than Rs.2,40,000. 

Only in the last month of the year, or in the last month of the tenancy if the unit is vacated during the year, is the payer required to deduct tax. However, if the rent is paid in advance, you must deduct tax at the time of payment.

As a result of the new laws, even those who are paid or retired and do not engage in any company or profession but pay rent exceeding Rs 50,000 per month will be required to deduct tax at source. This will put those who earn rent by renting out their property to those who are not in the business or profession into the tax net.

This provision of deducting taxes at the source is not limited to commercial or residential properties. One can also deduct taxes on hotel room rentals, renting of community halls, wedding venues and other such buildings regardless of the duration of renting. This is applicable if the cost of renting such areas exceeds Rs.50,000.

Important Things to Know About TDS on Rent for Property

As with any regulations concerning taxation in India, there have been plenty of changes to the rules with the recent major amendments being in the Budget 2017 and Budget 2019 which removed the earlier rule that required only specified categories of businesses and professionals to pay TDS. In 2022-2023, the Government has clearly stated which professionals need to pay TDS on rental income and they are segregated in different categories such as:

A. TDS rate on rent for Salaried Professionals & Businesses (Section 44AB)

During the financial year if the rent paid/payable exceeds Rs. 2, 40, 000, then the TDS on rent paid by a person is capped at 10% as stated in Section 194I. Before the amendment, this value was capped at Rs. 1, 80, 000 but with the financial year 2019-20, the TDS on rent limit was increased to 2.4 lakhs/per annum. Remember, this applies to businesses and professionals who are required by law to get audited by a qualified Chartered Accountant (CA) under section 44AB only. Those that are not required to get audited do not have not to get 10% deducted TDS on rental income. In the case of a co-owner, all the parties have the same limit of Rs. 2.4 lakhs. The only exemption for the audit in this category is if the payment is made by a person or Hindu United Family if the turnover of the business is less than Rs. 5, 000, 000 to Rs. 1 cr.

B. Salaried Professionals not falling in Category “A” as stated above

Any people who do not fall in the A category that we have mentioned were earlier exempted from TDS on rent but from June 2017 onwards, any tenant excluded from the A category was required to deduct TDS on rent if the amount exceeded Rs. 50,000 p.m.

C. TDS on rent limit for any taxpayer not falling under the above two categories is capped at 5% of the total rent paid/payable. 

Who is Liable to Deduct TDS?

Now that the main categories of the TDS on rent limit are clear. It is very simple to understand which professionals and businesses are liable for TDS on rental income. So, anyone who is not an individual or HUF and falls under the category A and B is liable for TDS on rent payments.

In the case of a commercial factory building being let out, the rent receivable is considered a part of the income from the business itself that the owner is getting and thus even the lessor (owner) will be required to pay TDS on rent.

If you are wondering if it makes a difference that you are paying rent monthly then rest assured that under Section 194-I the TDS on rent payment can be deducted quarterly and similarly, the tax will be deducted at source once a year if the payment is done yearly.

The term ‘rent’ by law also covers any service changes that are payable to the business/commercial centres and thus this amount is also considered as rent despite it being an extra part of the agreed amount and will be considered while deducted TDS rate on rent.

How is TDS on Rent Calculated?

If the persons or businesses are covered under the provision, and are residing in India, the deduction of TDS on rent payment will happen in the following ways:

• The TDS is 2% for rent paid for plants, equipment, or machines.
• The TDS on rent limit is 10% for rent payable for land, building, furniture, business centres, fittings, etc.
• For TDS on rent paid by an individual or Hindu United Family that is under the tax, the audit bracket will be liable for a 5% TDS on rent.

When is TDS on Rental Income Deducted?

As stated in the tax law, the rent payer must deduct the amount of tax at the time the money is being credited in the accounting book (even if payment is done at a later date). If the rent being paid is done in advance (for a year or even more than a year) the deduction has to be done at the time of payment and one can easily obtain a Tax deduction account number (TAN number) and depot the tax through a challan.

TDS on Rent Paid to NRI

As you must have noticed, whenever we were talking about TDS on the rent section, we were specifically talking about owners residing in India. That’s because the tax laws such as the TDS tax on rent are different for Non-resident Indians (NRIs). As per Section 195 of the IT Act, the tenant is expected to deduct 30% of rent paid to a landlord who is an NRI but is located outside the country. As stated above, it is necessary to have a TAN and if the TDS on rent paid to NRI is not done on time, the owner may have to pay a hefty penalty

Rent Paid to NRIs: Is TDS to be Deducted?

In case of rent paid to NRI individuals for properties present within India, the tenants are required to have a TAN (Tax Deduction and Collection Account Number). The TAN is a ten-digit alphanumeric code assigned to persons who are required to deduct TDS on the rent. 

The renter must deduct TDS at a rate of 30% on rent paid for NRI properties situated in India, according to Section 195 of the Income Tax Act.

If the renter fails to deduct TDS from the rent paid to the NRI, the payer will be subject to the applicable penalties.

How to Pay TDS on Rent?

Paying the TDS on rent is very easy thanks to the digitisation of the entire process! All you have to do is log on to www.tin-NSDL.com and find the link to download Form 26QC. Once you have filled in all the details such as the financial transaction, landlord’s financial account details, etc, you must also note down the details of the type of accommodation. Another aspect of the TDS filing that should be known is that if the landlord is the co-owner of the property, then the details of all the owners must be filled diligently in the form!

What is TAN? Is TAN Mandatory for Deducting TDS on Rent?

TAN stands for Tax Deduction and Collection Account Number and is a 10-digit alphanumeric number. All individuals who are involved in deducting or collecting the tax must receive the number.

The Income Tax (IT) Department assigns the alphanumeric number under Section 203A of the Income Tax Act, 1961. All TDS returns must include it as a mandatory item.

Individuals must have a TAN since TIN facilitation centres will not accept tax deducted at source (TDS) or tax collected at source (TCS) returns without it. If the TAN is not quoted, banks will not accept the challans for TDS or TCS payments.

Failure to apply for a TAN or not stating the 10-digit alphanumeric number in certain documents such as e-TDS/e-TCS returns, TDS/TCS returns, TDS/TCS payment challans and TDS/TCS certificates can result in an Rs.10,000 penalty.

Forms  for TDS Payment on Rent

Log on to tin-nsdl.com to pay TDS on your rent. The link to fill out Form 26QC can be found on the website under the “Services” menu. Fill in all of your personal information, as well as the information about your landlord and the financial transaction. If you’re sharing a room, you’ll need to provide the information of the co-tenant as well. Similarly, if your landlord co-owns the property with another person, that person’s information must be included in the form as well.

Understanding all aspects of TDS on rent is critical if you are a landlord or are thinking of leasing your property. You can post your property ad for free on NoBroker and find the right tenants. NoBroker is the best place for property owners and seekers in India. 

Frequently Asked Questions (FAQs)

Lease vs. Rent? Our Guide Breaks Down the Difference Between Lease and Rent

Are leasing and renting the same thing? There is very little chance that people out there, including you, know the difference between lease and rent house. Verbally, people use both words interchangeably, but technically, they both have different meanings.

Amid the pandemic crisis, individuals are compelled to seek affordable housing options, either through renting or leasing flats. It’s important to note that a lease differs from a rental agreement. In a lease agreement, one party grants the other party the possession of an asset for a mutually agreed-upon period. Legally, a lease serves as a means to rent accommodation and establish a settlement.

For example, you may have moved to a new city and chosen a suitable place according to your requirement where you have signed a lease agreement. Being unaware of the city and the new people living in your locality, you may want to shift to any other building as you get accustomed to the city. Here, a rental agreement proves beneficial.

What is Rent?

The meaning of rent means letting out any property or any possession to someone for a limited period agreed upon with a basic pay schedule. In simple words renting is an agreement made between the tenant and landlord which is short-term. 

Till the agreement ends, the tenant pays rent for the use of assets like land, car or building, etc. which belong to the landlord.

The two parties involved here are known as landlord and tenant. The term extends that both parties mutually decide to end the agreement. In most cases, the term of rent is less than a year. The laws of a rental agreement differ from state to state.

The terms of the agreement can be modified or raised by the landlord by giving prior notice to the tenant. One major thing to be noted here is that the agreement may be either oral or written. 

Pros of Renting an Apartment

• Flexibility: Renting an apartment provides flexibility in terms of mobility, allowing you to easily move to a different location or upgrade to a larger space when needed.
• Lower upfront costs: Renting typically requires a smaller upfront financial commitment compared to buying a property, as you don’t have to worry about a down payment or other significant expenses associated with homeownership.
• Maintenance and repairs: As a tenant, you are not responsible for major maintenance and repair costs. The landlord or property management is usually responsible for addressing issues such as plumbing, electrical problems, or structural repairs.
• Amenities and facilities: Many apartment complexes offer amenities such as gyms, swimming pools, laundry facilities, and communal spaces, which can enhance your living experience.
• Less responsibility: Renting alleviates the responsibilities of property ownership, such as property taxes and insurance. You can focus on enjoying your living space without the additional burdens.

Cons of Renting an Apartment

• Absence of equity: Unlike owning a property, renting does not provide the opportunity to build equity or gain ownership in the place you reside. Instead, your monthly rent payments contribute solely to the landlord’s investment.
• Limited customisation options: Renting may restrict your ability to personalize the living space to suit your preferences. Rules regarding modifications, such as painting walls or making structural changes, maybe in place, limiting your ability to customize the apartment. Additionally, some landlords may have restrictions on owning pets.
• Potential for rent increases: Landlords have the right to increase the rent at the end of each lease term, which can impact your budget and affordability. These rent hikes are beyond your control and can significantly affect your financial stability.
• Uncertain stability: Renting an apartment lacks the same level of stability and long-term security as homeownership. Landlords may decide not to renew the lease or sell the property, requiring you to find a new place to live. This uncertainty can disrupt your living arrangements and add stress to your life.
• Limited control: As a tenant, you have limited control over the property. You must adhere to the rules and regulations set by the landlord or property management, which may restrict certain activities or lifestyle choices, affecting your sense of freedom and autonomy.

What is a Lease?

A contractual authorisation signed between two parties namely the lessor and the lessee is called a lease. In simple words, a lease is an agreement made between two parties or companies. Here, one of the parties permits the other party to use and control an asset for a definite period without really buying it. This is not renting but it is a form of renting as per the lease house meaning.

The agreement on which the terms and conditions are based is known as a lease deed. Moreover, a lease agreement needs to be first stamped and then registered. Due to the fact that registration is done, it’s not easy to terminate a lease agreement. 

All kinds of property come under a lease like houses, apartments, vehicles, land, furniture, commercial real estate, and even tools or equipment. The tenant and the property owner are expected to honour this agreement. 

Pros of Leasing an Apartment

• Flexibility and Mobility: Leasing an apartment offers flexibility, allowing you to move easily when your lease ends without the hassle of selling a property.
• Lower Upfront Costs: Leasing typically requires a smaller upfront payment compared to purchasing a home, making it more affordable for those on a budget.
• Maintenance and Repairs: In most cases, the landlord is responsible for handling maintenance and repairs, saving you time, money, and the stress of dealing with such issues.
• Access to Amenities: Many leased apartments come with access to various amenities such as swimming pools, fitness centres, and communal spaces, enhancing your living experience.
• Financial Predictability: With a fixed lease term, you have a clear understanding of your monthly housing expenses, allowing for better budgeting and financial planning.

Cons of Leasing an Apartment

• Absence of Property Ownership: Unlike owning a home, leasing an apartment does not provide the opportunity to build equity or gain ownership of the property.
• Limited Control and Personalization: As a tenant, you may face restrictions on making significant modifications or personalizing the space according to your preferences.
• Potential Rent Increases: Landlords have the ability to increase rent at the end of the lease term, which can lead to higher housing costs and financial uncertainty.
• Restrictions on Pets and Subleasing: Many leased apartments have rules and regulations regarding pet ownership or subleasing, limiting your options in these aspects.
• Risk of Non-Renewal: While a lease agreement offers stability for a specific period, there is always a chance that the landlord may choose not to renew the lease, requiring you to find alternative housing.

When considering whether to lease an apartment, it is crucial to carefully assess these drawbacks alongside the advantages to make an informed decision that aligns with your lifestyle and financial goals.

A lease is most common in commercial real estate. 

What is the meaning of Lessee and Lessor?

The legal owner of the asset or property who lends the right to the lessee to use or occupy the asset or property for a specific period is called a lessor. He has the complete right to take back the property from the current lessee and lend it to some other lessee. 

The lessee has only restrictive control over the property or asset. The amount of lease or rent is paid as compensation by the lessee

The Key Differences Between Lease and Rent

Renting a house versus taking it on lease – which option is better for you? If you’re pondering this question, it’s crucial not to confuse these two terms. Though the line between them may seem thin and unclear, understanding the disparities is essential. Let’s delve into the key differences of lease and rent:

• The lease is a long-term agreement, while rent is a short-term agreement.
• There is no specific standard made within a rent while Accounting Standard-19 deals with leasing.
• The Lessee and lessor are the two parties involved in a lease while the landlord and tenant are the two parties involved in renting.
• The landlord bears the cost of repairs and maintenance of the assets. While when it’s a finance lease the expenses of the same are taken by the lessor and if the lease is agreed upon as an operating lease, then the lessor bears the expenses.
• The advantage of a lease agreement is that the party cannot alter the terms of the contract that was agreed upon together until the contract expires, unlike the rent agreement where the landlord can alter the terms of the contract at any time.
• Lastly, when the lease ends, the lessee has an option to buy the asset at a residual price while there is no such option made available to the tenant.

Benefits of Rent Agreement over a Lease Agreement

When considering housing options, it’s important to understand the distinction between lease and tenancy agreements. While both involve renting a property, there are significant differences between the two. In this section, we will explore the benefits of opting for a rental agreement over a lease agreement, highlighting the key differences between a lease and a tenancy.

• Flexibility in duration: Rent agreements allow for shorter terms, providing more flexibility compared to lease agreements with longer commitments.
• Easy termination: Rent agreements typically have shorter notice periods, making it easier to terminate the agreement when needed.
• Lower upfront costs: Rent agreements involve lower upfront costs and security deposits, making them a more affordable option.
• Simplified documentation: Rent agreements involve less legal complexity and paperwork compared to lease agreements.
• Tenant freedom: Rent agreements grant tenants more freedom to make changes to the property compared to lease agreements with stricter rules.
• Ideal for short-term needs: Rent agreements are well-suited for short-term housing requirements and offer more flexibility.
• Less commitment: Rent agreements involve fewer long-term obligations, providing tenants with more flexibility.
• Negotiation opportunities: Rent agreements often offer room for negotiation and adjustments during the tenancy period.
• Fewer restrictions: Rent agreements tend to have fewer restrictions, allowing tenants to personalize their living space.

While deciding on which to go for, be it lease or rent; what should be kept in mind is to analyze and choose the one required by the asset and which is adjustable with your requirements. Functionality-wise, there is not much of a difference but payment plays a major role. In leasing, you’ll have to pay a fixed amount (it will be 40-50 times that of the rental amount). 

Additionally, if a particular company requires an asset throughout the year, then a lease is the best option. However, if there is no such demand, then renting is the best option. Between lease and rent, most people choose to rent over lease due to its flexibility. The tenant is not bound by any crucial rules and regulations.

Now that you have a clear understanding of the difference between lease and rental agreements, you can confidently make the right decision. Whether you’re a buyer or a tenant, consider the terms and usage of the asset to make an informed choice. If any doubts persist, seeking assistance from NoBroker’s experts is a wise step. 

With their experience in drafting numerous leases and rental agreements, they will guide you through the entire process. The added convenience of getting a rental agreement from the comfort of your home makes it even more appealing. For more details about this service, click the link below.

FAQs

 

Indian Rental Market Trends 2024: Analysing Rental Market in India

Although data shows that over 64% of tenants are looking to buy homes in 2024, there are still 36% of tenants who still prefer the ease of renting to owning their own homes. But, do you know what all these tenants look for, why they shift homes, and most importantly, how they find homes to move to? We have the answers, NoBroker created the NoBroker Real estate report in 2024. This report has insights that have been gathered from over 7 million NoBroker customers and a survey with over 12546 respondents. The report was made so that we can understand rental market trends like how renters, landlords, buyers and sellers think and what they look for in terms of Real Estate.

Rental Property Trends: Rental Market Trends 2024

The survey on rental housing market was conducted across Delhi-NCR, Bangalore, Mumbai, Pune, Chennai, and Hyderabad. Here are some of the latest insights from our rental market trends report

Tenant Demographic

When you have a home to rent, how old do you think your average tenant will be? Well, according to our rent market analysis, a majority of tenants or renters (32%) fall into the age bracket of 25-35 years. The youth, i.e. 18-25 is the second-highest age bracket that tenants fall under.

The number of renters in the age groups of 35 to 45 years and 45+ declined. Here we slowly see a shift from renting to buying. Only 16% of renters are between the ages of 35 to 45 years and only 15% are 45+.

How Do They Rent?

People use websites and apps for almost everything, including finding homes to rent. Online portals such as NoBroker provide renters with thousands of options, and the ability to connect with landlords directly. This makes the process of finding a home much simpler and faster than having a middleman communicate on your behalf. To pay rent using a credit card click here.

We also see that experienced renters prefer to find a home through people they know like friends and family. They even take the time to go to homes that have a ‘To-Let’ board on display. We see that the need for broker services is on a sharp decline as people don’t see much merit in the high fees that brokers charge.

In Bangalore, 43% of renters don’t choose broker services, in Mumbai it’s 43% and in Chennai, it’s 40%. These numbers have grown from 33% each last year. This could be due to the large number of options that other avenues provide as well as the cost savings involved.

Why Do They Shift Homes?

There are many reasons why people move from one rental home to another, the biggest reason is, their job. It’s a known fact that if you live closer to work, you spend fewer hours on commuting and you save more money. Apart from this, you enjoy a better quality of life and will have a better work-life balance. This is precisely why over 44% of tenants shift houses to find a place closer to where they work.

The other major reason for shifting is because they need more space i.e. a bigger home. This could be because their family has grown, or because they have more disposable income and can hence afford a larger house. While house shifting it is important to choose good packers and movers.

Rent increases have also forced tenants to shift homes to keep their budgets in control. 30% of renters in Hyderabad and 26% of renters in Bangalore cite this as a reason to move homes. This could be due to the fact that these cities have experienced high rental inflation last year.

Rental Market Trends for Apartments

Here are some insights about apartment rental rate trends in 2024:

Over 43% of tenants use real estate websites to find a house. It offers a more independent and unbiased experience. This is a good growth of over 35% last year. 32% of people also mentioned that they find a home through friends and relatives which is almost the same as last year. 12% of tenants mentioned that they search for a house via to-let boards (this is substantially low than last year’s 24%, but the lockdown and the restricted movement probably explain that). Only 13% of tenants use broker services.

If you too wish to move homes or find a good tenant for your home, try NoBroker by clicking below. We have thousands of options and tenants to choose from, visit us today and let us know how we can help you.

Faq’s

A 1RK For Rent In Delhi Without A Deposit – Find The Perfect Home For You

Are you looking for a 1RK for rent in Delhi without a deposit? Then, we have the perfect home for you. Our selection of properties offers both comfort and convenience, so you can rest easy that your new home will meet all of your needs. 

You can easily explore the city with access to amenities such as shopping centres and public transportation. Our experienced professionals will help you find the right property at an affordable price. 

The 1RK For Rent in Delhi without deposit is a new concept that offers a new way to rent a home without a deposit. In the past, people have been put off renting due to the financial burden of a deposit. But with this concept, there is no need to worry about this because you pay only for what you use. Renters can choose from a wide variety of homes and apartments in Delhi. 

The best part is that the 1RK For Rent in Delhi offers affordable and affordable rates. If you’re looking for a place to rent in Delhi, it’s time to give the 1RK For Rent in Delhi without a deposit a try. Take your time – contact us today and start your search for the perfect 1RK in Delhi without a deposit.

Why Renting Could Be Better Than Buying

There are several reasons why renting could be better than buying a home. 

1. Lower Utility Costs

Because rental properties have landlords that cover the cost of water, trash, and other utilities, these properties typically have lower utility costs than other residential properties that require tenants to cover these costs.

2. Lower Insurance Costs

Renters’ insurance is usually cheaper than homeowner’s insurance. This is because the landlord’s insurance policy generally covers the property’s structure, while the renter’s insurance policy covers the renter’s personal belongings.

3. Fixed Rent Amount

Another advantage of renting is that the rent amount is typically fixed, which provides an added layer of security since you won’t have to worry about your mortgage payments unexpectedly increasing if interest rates rise.

4. No Maintenance Costs or Repair Bills

You won’t have to worry about paying for any unexpected costs associated with the property, such as maintenance or repairs since those costs are generally taken care of by the landlord.

If you’re looking for a place to live that is more affordable and requires less upkeep, then renting is a good option for you.

What Is No Deposit Renting?

In a no-deposit rental agreement, the renter is exempt from making a security deposit. This can be a terrific choice for tenants needing more money to pay a deposit upfront. No-deposit leases can also be advantageous for landlords because they can lower vacancy rates.

Of course, renting with no deposit has its drawbacks. One is that if you’re already strapped for cash, you could have to pay rent upfront. Additionally, since there is no deposit to provide as a safety net for the landlord, your renting history may be examined more closely.

No-deposit renting is a terrific alternative for people who can’t afford a typical security deposit. Just be mindful of the drawbacks and make sure you’re ready to pay the rent in advance if necessary.

How to Choose the Rental House or Flat That Is Right for You?

There are many things to consider when choosing a rental house or flat. However, the following are some important factors to keep in mind.

1. Location

The location of the rental property is important for many reasons. First, you will want to choose a safe neighbourhood close to public transportation, schools, and other amenities.

2. Size

The size of the rental property should be appropriate for your needs. For example, if you have a large family, you will need a larger space than if you are single or have a small family.

3. Price

The price of the rental property should be within your budget. Consider all associated costs, such as utilities and furniture, when determining whether a rental is affordable.

4. Amenities

The amenities offered by the rental property should be suitable for your needs. For example, if you have children, you may want a rental that includes a playground or swimming pool. If you have pets, you will need to find a pet-friendly rental.

5. Lease Terms

The lease terms of the rental property should be favourable for both parties involved. Therefore, please read and understand the lease agreement before signing it.

By keeping these factors in mind, you can narrow your choices and find the perfect rental house or flat for your needs.

Best Areas To Live In Delhi

Delhi is a large and sprawling city with a wide range of neighbourhoods to choose from. When looking for the perfect place to rent, it is important to consider what you want in a neighbourhood. 

Do you want to be close to the action or more removed from it? Are you hunting for a location that is calm and serene, or one that has a more active nightlife? How important is proximity to green space versus proximity to urban centres for you? Finding exactly what you need is a matter of refining your criteria after you have a solid understanding of what it is you’re after.

1. Rajouri Garden

One popular option for renters is Rajouri Garden. This neighbourhood is known for its diverse range of shops and restaurants and lively nightlife. With highly esteemed colleges and convenient accessibility throughout the area, this is the ideal location for students and professionals alike. It is also conveniently located near many of Delhi’s major attractions.

2. Mayur Vihar

Another popular option is Mayur Vihar. Mayur Vihar is a residential district in East Delhi, split into Phase 1, Phase 2 and Phase 3. This neighbourhood is quieter and more residential but still has plenty of amenities nearby. With many different options available, you’re bound to find something you appreciate in this area. It is also a short metro ride from Delhi’s best shopping and dining areas.

3. Lajpat Nagar

Lajpat Nagar is another popular option for renters. Lajpat Nagar Central Market is known for its abundance of green space and many markets and shops. Moreover, living in one of the neighbourhood housing estates is safe, and the area is simple to get there thanks to frequent bus and metro service to the rest of the city. As a result, this location is perfect for habitation.

Various Home Designs and Their Advantages

Nowadays, people are more interested in living in apartments than independent houses. The main reason for this is the need for more time that people have to look after their homes, and also, the cost of living in an apartment is relatively low compared to living in an independent house. 

There are different types of apartments available these days, and some of the most popular ones are studio apartments, 1 BHK apartments, and 2 BHK apartments. Let us take a look at the advantages of each of these types of apartments.

Studio Apartment

Studio apartments are the most popular type of apartments these days. The main reason is that they are relatively low in cost compared to other apartments. They are also very easy to maintain and are the perfect option for people who are always on the move.

1 BHK Apartment

1 BHK apartments are the next most popular type of apartment. These are perfect for small families or people looking for a place that is easy to maintain. These apartments are relatively more expensive than studio apartments, but they offer more space and privacy.

2 BHK Apartment 

2 BHK apartments are the most expensive, but they offer the best value for money. These apartments are perfect for families or people looking for a spacious place with a lot of privacy.

Looking for a rental property can be daunting, especially if you need help figuring out where to start. There are many things to consider when choosing a rental house or flat, but the three most important considerations are location, size and price. 

Rajouri Garden, Mayur Vihar and Lajpat Nagar are all great choices for renting in Delhi. However, each neighbourhood has unique advantages, so choosing the one that best suits your needs and wants is important.

NoBroker is here to help! We are India’s largest real estate platform that helps people find their perfect home without paying any brokerage fees.
NoBroker has a wide variety of rental properties on our website, so you’re sure to find something that fits your needs. You can search for rentals by location, price, size and more. We also have a team of experienced real estate agents who can help you with your search. Head over to the NoBroker website to find a brokerage-free home in Delhi for rent today.

FAQ’s

The Cheapest Places to Live in Delhi for 2024

Popularly known as ‘Dilli’, New Delhi is the capital city of India and also the second most populated city in the country, with more than 31 million people residing in the Delhi NCR region. Always in the news for various reasons, Delhi has seen some of the most important cultural and political events in the history of the country. One can feel the rich heritage when they visit some iconic places such as The Red Fort, Jama Masjid, Rajghat, etc. Want to know about the cheapest places to live in Delhi, continue reading the article.

Today, New Delhi is synonymous with great infrastructure, and lip-smacking food, and is one of the biggest commercial hubs in the country. Delhi has become a preferred metro city for young students and professionals aiming to make it big in their lives. Jantar Mantar, Haus Khaz, and Chandni Chowk are just some of the many attractions which excite youngsters! One might think that being such an important city, the flat and rental rates must be super high, but, that’s not true.

 Just like many other metros in India, there are affordable flats in Delhi that one can find if one has the time to look at the hidden gems. If you are looking at the cheapest areas in Delhi to rent then it’s your lucky day as we have researched and covered all the places in Delhi below!

1. Uttam Nagar

Located on the western side of the city, Uttam Nagar is one of those localities that has seen a drastic change in the past two decades in terms of basic amenities as well as physical infrastructure. Due to gradual advancement, Uttam Nagar has emerged as a preferred locality where young persons, as well as families, can rent houses at an affordable rate.  One advantage of living in Uttam Nagar is that one can go to Janakpuri, Dwarka, and Gurgaon in no time, thus being closer to business hubs but also not having to spend much on rent. 

Rent for Flats in Uttam Nagar: Rs. 6700-8000

• Social Amenities in the Proximity
• Educational institutions: Subhash College, Delhi Degree College
• Hospitals: Mata Roop Rani Maggo Hospital, Mahindru Hospital
• Malls: City Mall, Jai Maa Mall.
• Parks: Chota Qutub Minar Park.

2. Laxmi Nagar

Popular for being close to ITO and Noida, educational hubs of the city, Laxmi Nagar is one of the cheapest places for accommodation in Delhi for students who are looking to rent a flat. Because of the rise of Chartered Accountant coaching classes, Laxmi Nagar has seen a huge influx of aspiring youngsters. As with any popular area, it also has a host of good restaurants, small eateries, and commercial establishments that attract large crowds.

Rent for Flats In Laxmi Nagar: Rs. 8100-9000

• Social Amenities in proximity –
• Educational institutions: GA Diploma College, Saraswati PT College
• Hospitals: Sanjeevani Healthcare, Kasturba Hospital
• Malls: Cinepolis, Radhu Palace
• Parks: DDA Sports Complex Enclave, Jagat Ram Park

3. Saket

If you have been residing in Delhi for a while then you would be surprised to see Saket in the list of affordable places to live in Delhi. But, don’t be surprised, if you can find the right spots, even living in South Delhi can be done with a tough budget! IGNOU Road in Saket is a great location in the Southern part of Delhi along with Outer Ring Road. The great thing about finding a cheap flat on rent in Saket is that the area is just 30-45 minutes away from Gurgaon as well as Rajiv Chowk.

Read: Questions to Ask Your Landlord Before Renting A House in India

Rent for Flats In Saket: 11,300-13,500

• Social Amenities in proximity-
• Educational institutions: ACMT College, Mahatma Gandhi College of Education
• Hospitals: Max Super Speciality Hospital, Sawan Neelu Angel’s Hospital
• Malls: Select CityWalk Mall
• Parks: Saket Park, MCD Park

4. Mayur Vihar

If you are looking to move into a very affordable and cheap neighbourhood in East Delhi, then Mayur Vihar is the right locality for you! As the name suggests, the area is famous for a Peacock sanctuary dedicated to the conservation of the beautiful bird. Mayur Vihar has 3 different phases but all of them are at par when it comes to the affordability factor in terms of real estate. Traditionally, one would find the locality as a great fit for raising a family. 

Rent for 1 BHK In Mayur Vihar: Rs. 8700-10500

• Social amenities in proximity-
• Educational institutions: DIPS Paramedical & Management Institute, Sri Chaitanya Junior College
• Hospitals: Jeevan Anmol Hospital, Kukreja Hospital
• Malls: The Galleria Mall.
• Parks: Fountain Park, Sanjay Lake.

5. Lajpat Nagar

Divided into 4 phases (I, II, III, and Phase IV) Lajpat Nagar is a cultural and business hub area in South Delhi known for different textiles industries. This is also one of the reasons why the rental rates in Lajpat Nagar are relatively low (when compared to other business hubs in the city of Delhi), due to a huge textile hub, many professionals have their factories and work in the area, making it a preferred option for living in the capital city. One unique factor about this area is that people of different religious faiths and nationalities live here abundantly! Thus, even though the average rent for 1 BHK may seem slightly higher than some of the other localities in this list, the locality is still relatively cheap and totally worth the extra money!

Rent forFlats In Lajpat Nagar: Rs. 9700-11500

• Social Amenities in the Proximity
• Educational institutions: Lady Sri Ram College of Commerce (LSRC) 
• Hospitals: IBS Hospital, Metro Heart Hospital & Institute
• Malls: MyConnaughtPlace, Central Market Lajpat Phase II
• Parks: Lajpat Nagar Park

Read: Know Your Renting Rights with the Model Tenancy Act

6. Rajouri Garden

Located in West Delhi, Rajouri Garden is famous for having the largest population of Sikh people in the city. For young people and families looking for a cheap rental place on the west side, this is a popular option due to its spacious city planning and jovial residents. Interestingly, Rajouri Garden is also famous for a lot of vintage car shows and car-loving population. The name Rajouri comes from a district in Jammu with a similar name. If you are looking for a locality to raise kids and live a stress-free life, then this is a great option!

Flats for Rent In Rajouri Garden : Rs. 8700-10500

• Social Amenities in the Proximity
• Educational institutions: Rajdhani College, Shivaji College
• Hospitals: MKW Hospital, Gambhir Hospital, Aman Hospital 
• Malls: TDI Mall, Pacific Mall, West Gate Mall
• Parks: Bindra Park, Priyadarshini Park

7. Sarita Vihar

Another entrant from the Southside of Delhi, Sarita Vihar finds a place on the list and deservedly so. It is one of those localities that are strategically well placed on the map and connected well through the public transport system with a lot of important hubs around Delhi. One interesting trivia about the locality is that it was once tagged as the ‘Greenest Colony of South Delhi’. So, if you are looking for an affordable and cheap rental flat then Sarita Vihar is surely one of the better options in Delhi. 

Rent for Flats In Sarita Vihar: Rs. 8100-9500

• Social Amenities in the Proximity
• Educational institutions: Periyar Management & Computer College, Delhi Degree College 
• Hospitals: Kalindi Hospitals, Sanjeevani Dental Clinic
• Malls: Chauhan Market, Living Style Mall
• Parks: Sarita Vihar L Block Park, Center Park

8. Chhattarpur

Even though Chhatarpur is popular for big houses and gardens where weddings take place in hundreds every year, not many people know that one can rent an entire house and share it with people to live cheaply. If you are a family and want a big house with a backyard for your kids to play then one can easily find bungalows in Chhatarpur which are pocket-friendly. Well-connected with the yellow line Metro station, it is also closer to Gurgaon and other business hubs. 

Rent for Flats In Chhatarpur: Rs. 9700-12500

• Social Amenities in the Proximity
• Educational institutions: Career Companion Computer School, AMPI Business School
• Hospitals: Cornus Multi Speciality, Apex Hospital
• Malls: Kama Towers
• Parks: Chattarpur Enclave Park, MCD Park

9. Nirman Vihar

Because of its proximity to the Laxmi Nagar Commercial Complex (the cheapest area in Delhi), which houses various malls and a DDA Park, Nirman Vihar is regarded as one of East Delhi’s cheapest areas in Delhi for rent. The neighbourhood, which has numerous coaching institutes in and around it, also benefits from excellent road and metro connectivity, with Vikas Marg and Nirman Vihar Metro Stations providing reasonable travel alternatives.

Social Amenities in the Proximity

• Educational institutions: Bragnam Abacus, Universal Public School
• Hospitals: Om Bhikshu Medical Centre
• Malls: EG Mall, Metroplex East
• Parks: Nirman Vihar Park, Madhuban Park

10. Karkardooma

Karkarduma is projected to emerge as the cheapest place to live in Delhi for students in East Delhi college students, located at one end of Vikas Marg and close to the proposed East Campus of Delhi University (in Surajmal Vihar). Students registered in various coaching institutes on Vikas Marg already have a variety of PGs and independent flats to choose from in the Preet Vihar region and its surrounding areas.

The area also has several coaching institutes, as well as some leisure facilities (gyms and parks) and many markets where students can purchase high-end to low-end budget items. For these reasons, it is the cheapest place to live Delhi for students.

Social Amenities in the Proximity

• Educational institutions: MMI – London Montessori Teacher Training, DIET Karkardooma
• Hospitals: Shanti Mukand Hospital, SMH Heart Centre
• Malls: Cross River Mall, The WearHouse
• Parks: Karkardooma Park, Pushpanjali Park

Perks of Living in Budget-Friendly Neighbourhoods in Delhi

Delhi, the capital city of India, is a dream destination for many. It offers a plethora of benefits to its residents, including affordable living. Let’s take a look at some of the perks of living in the most affordable localities in Delhi.

1. Public Transport: Delhi has a well-established public transport system with advanced services like the Metro, DTC buses, and a large fleet of taxis. These services are highly affordable and make it easy for residents to travel within and outside the city. Booking a taxi or cab in Delhi is also hassle-free and takes seconds.
2. Free Bus Travel for Women: Female commuters in Delhi can travel for free on DTC (Delhi Transport Corporation) buses. And for safety purposes, the government has appointed civil defence marshals on the buses.
3. Free Electricity: The Delhi Government offers 200 units of free electricity to every household connection. And if you consume 200 units or less of electricity per month, you won’t have to pay any electricity bill. Plus, power cuts are a rare occurrence.
4. Free Drinking Water: The Delhi Jal Board provides 20 kilo litres of free water to every household. If you need more than 20 kilo litres of water, then it is chargeable.
5. 24/7 Surveillance: With a large population, the government of Delhi has installed CCTV cameras in various public areas for 24/7 surveillance. This has helped in reducing the city’s crime rates and keeping its residents safe
6. Affordable Education: Delhi has a good education system with numerous schools, colleges, and universities. There are many government-funded schools that offer quality education at a minimal cost. Additionally, Delhi has some of the top-ranked universities in the country, such as Delhi University, Jawaharlal Nehru University, and the Indian Institute of Technology Delhi.
7. Cultural Diversity: Delhi is known for its rich cultural heritage and diverse population. The city is home to people from various religions, cultures, and ethnicities, which makes it a melting pot of cultures. Residents of Delhi can enjoy a variety of cultural events, festivals, and food from different parts of India and the world.

Affordable Healthcare: Delhi has a well-established healthcare system with numerous public and private hospitals, clinics, and dispensaries. Government-run hospitals offer free or highly subsidised medical care to their citizens, while private hospitals provide quality healthcare services at an affordable cost. Moreover, Delhi has some of the best medical facilities in the country, with several hospitals having state-of-the-art equipment and highly qualified medical professionals.

So, there you have it! If you were under the impression that being the capital city of India, there are no affordable and cheapest places to live in Delhi then this blog has surely burst that bubble! Delhi is a great place to live and like any other Metro city in the country, it has a lot to offer for people who are open-minded. We hope that this list was useful to you and helped you decide where to find cheap rental flats in Delhi! You can also search for a home on NoBroker.

FAQ’s

Understanding Fake Rent Receipts and their Consequences

Let’s dive into the concept of fake rent receipts and their significance in the financial world. Fake rent receipts, as the name suggests, are fraudulent documents that mimic legitimate rent receipts but contain false information.

You might be wondering why someone would resort to using fake rent receipts for HRA exemptions. These receipts are often used by individuals to claim House Rent Allowance (HRA) exemptions, which is a component of their salary that is exempt from taxes. By submitting fake rent receipts for HRA exemptions to the employer or tax authorities, they aim to show higher rent expenses than they incurred, thereby reducing their taxable income.

However, the use of fake rent receipts is illegal and comes with severe legal and financial consequences. Not only can it result in fines, penalties, and even imprisonment, but it also undermines the credibility of the financial system.

Penalties for Fake Rent Receipts

As you make financial decisions, it’s crucial to remember that integrity and transparency are key principles in building a solid financial foundation. Using fake house rent receipts to reduce your taxable income is a breach of these principles and carries severe consequences.

The Income Tax Department closely monitors such activities, and any suspicious activity could lead to a legal notice seeking proof of your claims. 

If you cannot provide evidence, your claimed exemptions may be disallowed. In more serious cases, the IT department may determine your claims be false, leading to penalties for misreporting or under-reporting of income.

Under the Income Tax Act, of 1961, the authorities have the power to impose penalties of up to 50% for under-reporting of income and up to 200% if the misreporting is intentional. Furthermore, you may be required to pay interest as per sections 234A, 234B, and 234C of the Income Tax Act.

Not only can fake house rent receipts result in legal penalties, but they can also harm your credit score and future financial opportunities. Your credit score is a crucial factor in determining your financial credibility, and a tarnished score can limit your ability to secure loans, credit cards, or other financial products.

Common Red Flags to Look Out for When Reviewing a Fake Rent Receipt

As a responsible individual, it is important to be vigilant when it comes to your finances, especially when it comes to HRA exemptions and rent receipts. Here are some common red flags to look out for when reviewing a rent receipt:

1. Absence of rent agreement: When claiming HRA by providing a rent receipt, it is important to have a valid rent agreement in place. If there is no rent agreement present, it could indicate that the rent receipt is not genuine.
2. Wrong or fake PAN details: Ensure that the PAN details of the landlord mentioned in the rent receipt are correct and match the PAN details on file with the Income Tax Department. If the PAN details are fake, it is a clear indication of a fake rent receipt.
3. Non-declaration of HRA benefit: If your employer has not declared the HRA benefit in your Form 16, it could mean that the rent receipt is not genuine.
4. Claims made by close relatives: If an employee has claimed HRA against a rent receipt issued by a close relative in the absence of proper supporting documents, it could be an indication of a fake rent receipt.
5. Suspicious dates: If the rent receipt has a date that doesn’t align with your rental history, it could be a fake.
6. Unusual rent amounts: If the rent amount is significantly different from what you typically pay, it could indicate a fake receipt.

The Role of Proper Documentation in Preventing Fake Rent Receipts

Proper documentation is essential to maintain all the necessary records and documents that can support the HRA claims made by the employee. The following documents must be kept in order to avoid any discrepancies or fraudulent activities:

1. Rent Agreement – A valid rent agreement signed by both the tenant and the landlord can serve as proof of the rental arrangement between the two parties.
2. PAN details of the landlord – The PAN details of the landlord mentioned in the rent receipt must match the actual PAN details of the landlord.
3. Form 16 – Employers must declare the HRA benefit received by the employee in the Form 16.
4. Proof of payment – It is advisable to maintain proper records of the payments made towards rent. This can include bank statements, cheque copies, or any other supporting documents.

Alternatives to Using Fake Rent Receipts

As you strive to reduce your taxable income and maximize your financial well-being, it is important to understand that using fake rent receipts is not the only solution. There are several legal and ethical alternatives that you can use to claim HRA exemptions without putting your financial future at risk.

One alternative is to use legitimate rent receipts that are backed by proper documentation. This includes having a valid rent agreement in place, declaring HRA benefits in Form 16, and providing accurate PAN details of the landlord. By using legitimate rent receipts, you can avoid penalties, protect your credit score, and ensure compliance with tax laws.

Another way to obtain legitimate rent receipts is by using services like NoBroker. NoBroker offers assistance in obtaining rent receipts from verified landlords. With our expertise and experience, you can ensure that your rent receipts are legitimate and meet all tax requirements.

The Impact of Fake Rent Receipts on the Real Estate Market

The use of fake rent receipts has a significant impact on the real estate market, causing harm to both tenants and landlords.

1. Effect on Rental Market: Fake rent receipts have the potential to distort rental prices and skew the rental market. It allows tenants to claim HRA exemptions based on higher rent amounts than they pay, thereby reducing the taxable income. When such false claims become widespread, it can cause rental prices to rise, making it difficult for genuine tenants to afford the rent.

2. Role of Proptech Companies: With the rise of proptech companies, fake rent receipts can be quickly detected and prevented. These companies use technology to verify the authenticity of rent receipts and prevent fraudulent activities in the rental market. They can assist landlords in identifying tenants who make false claims, thereby safeguarding the rental market from such malpractices.

3. Long-term Consequences: Widespread use of fake rent receipts can have long-term consequences on the real estate market. If the Income Tax Department finds that a substantial number of tenants have claimed HRA exemptions based on fake rent receipts, it can lead to an investigation. This, in turn, can harm the reputation of the real estate market and cause a decline in investor confidence.

Wrapping Up

It is your responsibility to ensure the legitimacy of your rent receipts. By reviewing the documents carefully and seeking clarification from the authorities, you can take the necessary steps to avoid the use of fake rent receipts.

NoBroker’s legal experts can assist in ensuring the legitimacy of rent receipts and help in claiming HRA exemptions. We offer a transparent and responsible solution, preventing the use of fake rent receipts and the negative consequences associated with them. Explore NoBroker’s legal services by clicking the link below. If you have any inquiries, feel free to leave a comment and our team will assist you.

FAQ’s

Rental Yield Calculator: Maximise Rental Yield [Proven Ways]

If you are going to buy a property for the first time, there are two metrics that you need to understand. The first is the Cap rate and the second is the yield.

While the Cap rate is the return on property investment, rental yield is the return on investment on a rental property. Or in other words, Rental yield is a measure of how much money you can make from renting out a property.

In this article, we are going to discuss the importance of rental yield in real estate investing. We are also going to learn how to calculate and analyse rental yield to make informed investment decisions.

Definition of Rental Yield: How to Calculate Rental Yield of Your Property

The Meaning of Rental Yield: The phrase Rental yield refers to the annual rental income of a property about its value. It is calculated by dividing the annual rental income by the property’s value and multiplying it by 100. 

Rental Yield =Annual Rental IncomeProperty Value100

For example, if a property has an annual rental income of ₹10 Lakhs and a value of ₹1 Crore, 

Rental Yield =10 lakhs1 Crore100

—which will be 10%. 

A higher rental yield indicates a better investment as it means the property is generating a higher return on investment. 

How to Calculate Rental Yield?

Calculating rental yield is an essential step for both seasoned investors and first-time buyers in the real estate market. Rental yield helps you understand the potential return on your investment property and assists in making informed decisions. Here, we will guide you through the process of calculating rental yield and provide insights into its significance in the Indian real estate market.

Steps to Calculate Rental Yield:

• Determine the annual rental income generated by the property.
• Find the current market value of the property.
• Divide the annual rental income by the property value.
• Multiply the result by 100 to get the rental yield percentage.

To calculate rental yield, you need to follow a simple formula:

Gross Rental Yield = (Annual Rental Income / Property Value) x 100

This formula allows you to determine the percentage return on your investment based on the annual rental income generated by the property and its market value.

Two Types of Rental Yield Calculation

There are two primary types of rental yield calculations:

• Gross Rental Yield: This calculation considers the total rental income generated by the property, ignoring any expenses or costs associated with owning and managing the property. It provides a general overview of the property’s potential return before factoring in expenses.

• Net Rental Yield: Net rental yield accounts for the property’s expenses, including maintenance costs, property taxes, insurance, and management fees. It provides a more accurate representation of the property’s profitability.

Both types of rental yield calculations serve different purposes and help investors assess the financial viability of their investment properties. While gross rental yield is useful for initial analysis, net rental yield offers a more realistic picture by considering expenses.

5 Factors that Affect Rental Yield

1. Property Location

Properties located in desirable areas such as major cities or near commercial hubs tend to have higher rental yields than properties located in less desirable areas. 

For example, a flat in a prime location such as South Mumbai’s areas like Colaba or Marine Drive is likely to have a higher rental yield than a flat in a relatively remote area like Mulund or Borivali.

2. Property Type and Size

Different types of properties, such as single-family homes, apartments, or duplexes, can also affect rental yield. 

Properties that are too large or too small for the local market may have lower rental yields. 

For example, the rental yield in Bangalore’s Whitefield for a large bungalow may be lower than that for a small apartment in a prime location like Indira Nagar due to lower demand for large properties in the former area and higher demand for smaller properties in the latter area.

3. Management, Maintenance and Upkeep

Proper maintenance also helps attract better tenants, and retain tenants and will result in higher rental yield. 

A property that is managed effectively, with regular maintenance and prompt repairs, is likely to have a higher rental yield than a property that is poorly managed. 

If your property is managed by a property management company with a good track record for timely maintenance and repairs, then it is likely to have a higher rental yield than a property in the same area that is self-managed with a history of delayed maintenance and repairs.

Similarly, a property with modern amenities is likely to have a higher rental yield than an older property. The older property will require more maintenance and repairs, which can increase operating expenses and decrease rental yield..

4. Tenant Profile

The type of tenants that a property attracts can also have an impact on rental yield. Properties that attract long-term, reliable tenants will generally have a higher rental yield than those that have a high turnover rate.

For example, a property in a prime location like Indira Nagar, in Bangalore that is occupied by long-term, corporate tenants is likely to have a higher rental yield than a similar property in the same area that is occupied by students or short-term renters. 

Long-term tenants tend to take better care of the property and are less likely to cause damages or disruptions, which can help to reduce expenses and increase rental yield.

5. How Government policies Impact Rental Yield

Certain state government laws such as Maharashtra’s Rent Control Act, 1999 and Delhi’s Rent Control Act, 1995 limit the amount of rent landlords can charge, which can impact rental yield. 

Additionally, tax incentives for rental property owners such as Section 80GG of the Income Tax Act, 1961 allow for a deduction of rent paid for self-occupied property. 

Similarly, the Pradhan Mantri Garib Kalyan Yojana (PMGKY) offers a lower tax rate for declaring undeclared income—all these can affect your rental yield.

It’s important to take all these factors into account when evaluating rental yield, as they can have a significant impact on the return on investment. By understanding these factors and how they impact rental yield, investors can make more informed decisions and optimise their investment performance.

Rental Yield Comparison for Different Types of Rental Property

Single-Family homes

Generally, single-family homes have higher rental yields than apartments as they offer more privacy and space. Single-family homes also tend to have a better resale value in comparison to apartments. 

However, they also tend to have higher operating costs, such as maintenance, repairs, and insurance. Single-family homes also require more management and involvement of the landlord.

Apartments

Often, Apartments have lower operating costs and are more convenient for renters. 

They are ideal for people who want to live in densely populated areas with easy access to public transportation and amenities. 

Apartments also tend to have lower maintenance costs and are easy to manage. However, they tend to have lower rental yields than single-family homes, as they are typically smaller and less private. 

Apartments also have association fees which can add to the costs of the landlord.

Multi-unit buildings

These units can offer strong rental yields, as they allow landlords to rent out multiple units at once, which can help to offset the costs of ownership. 

They are ideal for investors who want to generate more revenue. However, managing multiple tenants and units can be more complex than managing a single-family home or apartment. Multi-unit buildings also require more management and involvement of the landlord. They also have higher maintenance costs. Reselling the property might become a challenge too.

Townhouses

Townhouses are similar to single-family homes, but they are attached to another unit and share a wall.  They offer more privacy and space than apartments but fewer maintenance costs than single-family homes. 

Townhouses also tend to have a better resale value than apartments. However, they also tend to have higher association fees and are less private than single-family homes.

Vacation homes

Vacation homes can be a great source of rental income when not in use by the owner. 

They are typically located in tourist areas or vacation destinations. They can offer higher rental yields than long-term rentals but require more management and maintenance. 

They can also have periods of low occupancy and may not be as good of an investment in certain areas or during certain times of the year.

Here’s a quick summary of the key factors to consider for various types of rental properties–

Property Type	Pros	Cons
Single Family Homes	Higher rental yields, better resale value	Higher operating costs, more management and involvement required
Apartments	Lower operating costs, easy to manage	Lower rental yields, association fees
Multi-unit Buildings	Strong rental yields, multiple units to rent out	Complex management, higher maintenance costs, difficult to resell
Townhouses	Better resale value than apartments	Higher association fees, less private than single-family homes
Vacation homes	Higher rental yields than long-term rentals	Requires more management and maintenance, periods of low occupancy.

Rental Yield in Top Cities – Bangalore, Mumbai, Chennai, Hyderabad, Delhi, Kolkata

City	Gross Rental Yield (%)	Net Rental Yield (%)
Bangalore	3-5	2.5-4
Mumbai	2-3	1.5-2.5
Chennai	3-4	2-3.5
Hyderabad	4-5	3.5-4.5
Delhi	3-4	2.5-3.5
Kolkata	3-4	2.5-3.5

Understanding rental yield trends in major cities is crucial for investors looking to maximize their returns. Here is a snapshot of rental yield in some of India’s top cities:

• Bangalore: Known as the Silicon Valley of India, Bangalore offers a vibrant real estate market with strong rental demand. Rental yields in prime areas such as Koramangala, Indiranagar, and Whitefield range from 3% to 5% on average.

• Mumbai: Mumbai’s real estate market is known for its high property prices and rental rates. However, rental yields in Mumbai tend to be lower compared to other cities, averaging around 2% to 3% due to the high cost of property acquisition.

• Chennai: Chennai offers a balanced real estate market with reasonable property prices and rental rates. Rental yields in areas like Velachery, OMR, and Anna Nagar range from 3% to 4%, making it an attractive investment destination.

• Hyderabad: Hyderabad has emerged as a thriving IT hub, driving the demand for rental properties. Rental yields in areas like Gachibowli, HITEC City, and Madhapur average around 4% to 5%.

• Delhi: The rental market in Delhi is diverse, with varying rental yields across different neighbourhoods. Areas like Dwarka, Saket, and Vasant Kunj offer rental yields ranging from 3% to 4%.

• Kolkata: Kolkata’s real estate market is characterized by affordable property prices and steady rental demand. Rental yields in areas like Salt Lake City, Rajarhat, and New Alipore hover around 3% to 4%.

By analyzing rental yield trends in these cities, investors can identify locations with higher potential returns and make well-informed decisions when purchasing rental properties.

When calculating rental yield, it is essential to consider factors such as location, property type, prevailing rental rates, and market conditions. NoBroker, India’s leading prop-tech platform, offers a rental yield calculator in India that simplifies the process for investors. With the best rental property calculator provided by NoBroker, you can quickly evaluate the rental yield of properties and make informed investment decisions.

Optimising Rental Yield: The Right Property Size for Your Market

The size of a rental property can affect not only the rental income but also the operating costs and the appeal to potential tenants.

In areas with high demand for rental properties, larger properties may be more desirable and able to command higher rents. For example, in a city like Bangalore, a 3 BHK flat may be more in demand than a 2 BHK flat, and therefore, may have a higher rental yield. 

At the same time, in an area with a higher population density, it might be a smart idea to build a complex with multiple 1BHKs or smaller 2BHKs as this will reduce maintenance costs.

To determine the optimal size of a rental property, it’s important to research the local market conditions and demand for different property sizes. This can be done by analysing data on rental prices, vacancy rates, and population density, as well as talking to local real estate agents and property managers to get an understanding of the local market.

How to Boost Your Rental Income through Effective Property Management

Effective property management is crucial for maximising rental yield, as it can help to minimise expenses and increase rental income. 

Here are some Proven strategies that you can implement to maximise rental income—

3 Tips for setting the right rent price for a property

1. Research local market conditions: Understand the local market conditions, such as the median rent for similar properties, to ensure that you are pricing your property competitively.
2. Take into account the property’s condition and amenities: Properties in better condition or with more amenities, such as a pool or a garage, can command higher rents.
3. Consider the target tenant: Consider the type of tenant you want to attract and tailor your rent price accordingly.

4 Strategies for reducing vacancy rates and increasing occupancy

1. Offer incentives: Offer incentives to attract tenants, such as reduced rent for signing a long-term lease or waived application fees.
2. Utilise online marketing: Use NoBroker to advertise your property and reach a wider audience.
3. Provide excellent customer service: Be responsive to tenant inquiries and address any issues or concerns promptly to increase tenant satisfaction.
4. Network with other landlords: Network with other landlords to learn about potential tenants who may be looking for a new rental property.

5 Ways to improve the value and appeal of a rental property

1. Make upgrades and repairs: Make upgrades and repairs to improve the condition of the property and make it more appealing to potential tenants.
2. Improve curb appeal: Improve the exterior of the property to make it more attractive to potential tenants.
3. Add amenities: Add amenities such as a pool or a garage to increase the value and appeal of the property.
4. Stage the property: Stage the property to make it more appealing to potential tenants.
5. Regularly maintain and clean the property: Regularly maintain and clean the property to ensure it is always in good condition for potential tenants.

Calculating rental yield is an important aspect of evaluating a rental property investment. 

The key factors that affect rental yield include property location, type and size, management, taxes, and government policies. 

It’s important to consider both short-term and long-term factors when evaluating rental yield, as well as to take into account the local market conditions and demand. 

Always make sure that your investment decisions are backed by solid data and research. A comprehensive data drive research can guarantee a better rental yield.

NoBroker can help first-time landlords, investors, property managers, and financial advisors navigate the complexities of calculating rental yield. Our platform provides data and tools to optimise rental yield and align with long-term financial goals.

Contact NoBroker today to learn how our platform can assist you in making informed decisions and reaching your financial goals. 

FAQs

Tax On Rental Income: Exemptions and Deductions

Investing in real estate is always considered a high-value investment. You can either invest in the property for your personal use or rent it to a tenant in need. Rental income is treated as business income in a lot of circumstances under the IPC and property owners should be aware of the income tax rate on house rent and important factors like how much rental property income is tax-free. If proper planning is done, a property owner can avail of a rental income exemption from paying certain taxes on rental income. Let’s find out what the tax on rental income is in India.

What is Tax on Rental Income in India?

If a property is leased out or rented, the amount received instead of the property is termed as “Rental Income” according to the existing Tax Laws in India. This includes any amount paid in advance as the security deposit. This tax is calculated after the municipal tax deductions.

According to the IPC, the rental income amount is considerable and it should be under the brackets of Section 24 of the Income Tax Act. 
The government makes no differentiation between residential property and commercial property. Even the parking lot attached to your office space or home is considered a house property and if rented out, is taxable. Any property in the shape of a building is a house property and can be taxed. In India, 30% of your rental income is taxable under the head income from house property as a standard deduction. The applicant must be the legal owner of a property for this standard deduction rate to apply to income tax on house rental income in India.

How is Tax on Rental Income in India Calculated?

While filling your statement for the Income Tax Returns (ITR), it is advisable to use a rental income tax calculator in India to help you figure out the approximate amount you may have to pay as a tax on rental income in India. Here are the steps through which you can determine the approximate amount you may have to pay as income tax on rental property:

1. Find out the Fross Annual Value (GAV) of the property: For a self-occupied property, the GAV is considered zero. For rented property, the amount collected as rent annually is the GAV.
2. Avoid Property Tax: Property Tax, if paid in advance, is allowed as a deduction.
3. Find the Net Annual Value: The difference between GAV and Property Tax Paid. 
4. Reduce 30% as a standard deduction: Under Section 24, 30% of the standard deduction on rental property income is allowed on NAV.
5. Reduce Home Loan Amount: Home Loan interest amount paid during the year can be deducted under Section 24. For a rented-out property, the full amount paid as interest can be deducted. 
6. Pay Tax based on Applicable Rental Income Tax Rate: The resulting amount is the income from the rental property that is taxable under the current tax rate on rental income in India.

The above method gives you a rough idea of taxes on rental income from house property and how they are calculated. 

Tax on Rental Income Based on Type of Property

Any sort of income generated from a property that is sublet to someone else is considered rental income and it is taxable under the current tax laws in India. However, the owner of the property is allowed to make certain rental property deductions to the amount paid as income tax on rental income in India from residential property in India if they have incurred any cost toward the property being made rent-ready and towards the maintenance of the property. The security deposit amount can also be deducted if the owner has the intention to return it. However, if the security deposit is not returned, it will be taxable. If the security deposit is kept against some damage, it can be shown in the income statement and later, the owner can ask for a deduction on it. Deductible expenses include, but are not limited to the following for rental income from commercial property under income tax laws:
Rental income in India is taxable, with deductions allowed for property-related expenses. Security deposit return is deductible, and expenses for property preparation and maintenance can also be claimed under income tax laws

• Advertising
• Commissions
• Cleaning and maintenance
• Depreciation
• Insurance premiums
• Interest expense
• Local property taxes
• Pest control
• Professional fees
• Management fees
• Rental of equipment
• Rents you paid to others
• Yard maintenance
• Supplies
• Trash removal fees
• Repairs
• Travel expenses
• Utilities

The amount for standard deduction cannot exceed 30% of the owner’s GAV on income tax on rental income from commercial property in India. These form the basics of income tax rules for rental income in India.

Tax on Rental Income in India: Is Tax imposed on Vacant Houses?

As per the Income Tax regulations, a vacant house property is treated as a self-occupied property. Prior to the financial year 2019-20, if a taxpayer owned more than one self-occupied house, only one property was considered self-occupied while the others were assumed to be let out. The choice of which property to choose as self-occupied was left to the taxpayer. 

However, starting from the FY 2019-20 and onwards, the benefit of considering two houses as self-occupied has been extended to homeowners. Now, a taxpayer can claim up to two properties as self-occupied and treat the remaining property as let out for the purpose of income tax.

Rental Income Taxation for NRIs

NRIs and PIOs who own property in India are subject to Indian taxation on earnings, including property rentals and capital gains on investments exceeding the basic rental income exemption limit. Rental income is taxable in India and is calculated similarly to a resident’s tax. 

Income earned from a property located in India is credited to NRE or NRO accounts after paying taxes and can be easily repatriated. The interest on an NRE account is exempt from tax, while an NRO account is subject to normal taxation. Tenants must deduct 31.2% tax on rental income and provide the NRIs with the certificate for the same.

What is the Section for Taxable Income from House Property?

1. Tax is levied on the annual value of a property under ‘income from house property,’ as per Section 22 of Indian income tax law.
2. It’s important to note that the tax is not on the property itself, but on the notional income derived from it.
3. The computation of income in this category is determined by sections 23-27, which specify the scope of taxable income.
4. Typically, the legal owner of the property is responsible for paying this tax.
5. However, Section 27 outlines exceptions, such as when a property is transferred without adequate consideration or when possession is granted in part performance of a contract.

What are the Rental Income Tax Exemptions in India?

1. Special exemptions and deductions are available for rental income tax in India.
2. Gross Annual Value (GAV) is considered only for income tax on received rent.
3. Owners can claim deductions if the rent is not received.
4. Premises rented for less than 14 days qualify for deductions from the GAV.
5. Homeowners with a home loan can deduct up to Rs lakhs.
6. Budget 2020 introduced section 80 EEA, allowing an additional tax deduction of up to Rs 1.5 lakhs for interest paid on the property.

How are the Rental Income Tax Deductions in India Calculated?

Rental income from the property is a pretty common source of income in India and for the financial year 2023-24, income up to Rs 2,50,000 is tax-free for individual taxpayers. If rental income is the main source of income for a particular individual, let’s see under what circumstances they may have to pay taxes on it. 

Income Tax Calculation for House Rent Received

Suppose the individual has a property they have let out for Rs. 20,000. This makes the GAV of the property be Rs 20,000 x 12 months = Rs. 2,40,000. This amount is under Rs. 2,50,000, so the owner may not have to pay any tax on this income. However, suppose the rent of the property was Rs. 30,000. Now, the GAV= Rs. 30,000 x 12 months = Rs 3,60,000. The owner may have to pay tax on this income as this exceeds the limit of Rs 2,50,000. The owner can also avail of income tax benefits on their home loan under Section 24(b). 

Income from rent is the primary source of income for a lot of households and it’s a great way to invest in the evergreen real estate industry. However, one must be aware of the tax rate on rental income in India and pay all the due tax on rental income on time. In most circumstances, homeowners are not aware of the deductions and exemptions they can avail of while paying rental income tax in India. Don’t worry. Consider your problems solved with Legal Experts from NoBroker. Get all your questions answered and queries resolved by legal experts mastering the property domain. Just drop a comment here and we will reach out to you. 

Tips to Save Tax on Rental Income

To save tax on your rental income in India, you can consider the following tips:

1. Exclude maintenance charges from the rent received to lower your taxable rental income. Instead, mention in the rental agreement that the tenant will pay maintenance charges directly to the society association.
2. If you purchase a property jointly with a trusted family member, you can divide the rental income and save tax proportionately.
3. Deduct municipal taxes such as sewage tax and property tax from your rental income to reduce your tax liability.
4. If you rent out a semi-furnished or fully furnished property with additional services like Wifi, DTH, or pipeline connection, you can ask the tenant to pay for these services separately, which will lower your taxable rental income.

FAQ’s

Must-See Properties For Rent In Bangalore With Photos

If you need to shift homes but are worried about travelling, you don’t have to anymore. NoBroker has some amazing houses that you can check out from the comfort of your home. These flats in Bangalore for rent have great pictures and videos that give you a virtual tour of the house. This way, you see the whole house without getting off your couch! Here are some hot localities in Bangalore and houses for rent that you should check out –

Properties For Rent in Whitefield with photos and videos 

Whitefield came into existence in 1882 and was named after David Emmanuel Starkenburgh White. This small locality was started with the aim to be an Anglo-Indian village where people worked towards a common goal, and owning property was not required. It was set on 4,000 acres of land granted by the then Maharaja of Mysore. Now, Whitefield is a top residential and commercial locality in Bangalore, it has seen rapid growth and development and is far from the sleepy hamlet it once was. The KR Puram railways station, upcoming metro station, many BMTC bus stops and auto stands make commuting very easy here. Whitefield also has huge tech parks, international schools, luxury and affordable housing options in plenty.

If you’re looking for a flat for rent in Whitefield with pictures and videos, then check out the options below –

1BHK house for rent in Whitefield with pictures and videos

2BHK house for rent in Whitefield with pictures and videos

3BHK house for rent in Whitefield with pictures and videos

Properties for Rent in Electronic City with photos and videos

If you’ve heard of Bangalore, you’ve heard of Electronic City. This is the IT hub of the city and you’ll find close to 200 IT companies here including big names like TCS, HCL, Infosys and many more. Electronic City is spread over 800 acres and is divided into 4 phases. Thanks to the number of offices here, this area has developed into a very well-planned locality to live in as it also has great schools, hospitals and infrastructure. Some of the best roads in Bangalore like Hosur Road, Elevated Expressway (the longest in the country), and NICE Road make commuting a breeze. The metro also helps to ease the traffic here.

When you are looking for a flat to rent in Electronic City, you need to decide on which phase you want to live in and also how close it is to your office. Here are a few options –

1BHK house for rent in Electronic City with pictures and videos

2BHK house for rent in Electronic City with pictures and videos

3BHK house for rent in Electronic City with pictures and videos

Properties for Rent in JP Nagar with photos and videos

JP Nagar is actually Jayaprakash Narayan Nagara, this is a rather old locality in Bangalore and is known for its peace and quiets, although now things are rapidly changing. It was once a purely residential locality and had many lovely old bungalows on its wide tree-lined roads. Now, the locality has grown into a commercial hub as well as residential one. You’ll find some of the best hospitals, restaurants, offices, and malls here.

If you’re looking for a flat on rent in JP Nagar, check out these great options –

1BHK house for rent in JP Nagar with pictures and videos

2BHK house for rent in JP Nagar with pictures and videos

3BHK house for rent in JP Nagar with pictures and videos

Properties for Rent in Banashankari with photos and videos

Banashankari or BSK, is famous for the Banashankari Amma Temple that was constructed in 1915. This locality is also famous for being one of the largest in all of Bangalore. It extends from Mysore Road to Kanakapura Road. In the west, it has Girinagar and Rajarajeshwari Nagar, Basavangudi in the north, Jayanagar and J.P. Nagar in the east, and Padmanabhanagar, Uttarahalli, Kumaraswamy Layout, ISRO Layout, and Vasanthapura in the south. As this locality is so vast, it has been divided into stages, phases and blocks. You’ll find plenty of residential and commercial options here, from malls to places of worship, from parks to well-planned roads, this area has it all in abundance.

Need a flat on rent in Banashankari? Here are a few options for you –

1BHK house for rent in Banashankari with pictures and videos

2BHK house for rent in Banashankari with pictures and videos

3BHK house for rent in Banashankari with pictures and videos

Properties for Rent in KR Puram with photos and videos

Krishnarajapura, or more commonly known as KR Puram, is famous for a hanging bridge built on the NH75, over the Krishnarajapuram Railway station. This locality is the headquarters of the Bengaluru-East taluk you’ll find many government offices here as well as residences and commercial establishments. It lies near Whitefield, Mahadevapuram, Narayanapuram, and even Marathalli. It is very well connected as it has a good railways station, 2 metro stations close by, the ring road and many other well-laid roads. You’ll find good schools, hotels, shops and more here.

This is an in-demand area, so if you’re looking for a house on rent in KR Puram, then look at these options we have for you –  

1BHK house for rent in KR Puram with pictures and videos

2BHK house for rent in KR Puram with pictures and videos

3BHK house for rent in KR Puram with pictures and videos

Properties for Rent in HSR Layout with photos and videos

HSR Layout (Hosur-Sarjapur Road Layout) is known for how well-planned the layout is. It has been designed with modern town planning principles, unlike most of the city. Here there are clear Sectors (there are 7), which are crisscrossed into main and crossroads. Main roads run north-south and Crossroads are from east-west. This area has attracted a lot of people because it is well planned and has many parks, schools, and startups in the locality. From big names like Zomato to Udaan, Trebound and more, they all like HSR Layout. It is also a great place to live if you work in nearby localities like Sarjapura, Marathahalli or Koramangala.

A house for rent in HSR Layout is not hard to find, here are some options –

1BHK flat for rent in HSR Layout with pictures and videos

2BHK flat for rent in HSR Layout with pictures and videos

3BHK flat for rent in HSR Layout with pictures and videos

Properties for Rent in Ramamurthy Nagar with photos and videos

Ramamurthy Nagar is a newer locality in Bangalore and is close to areas like Banaswadi, CV Raman Nagar and Krishnarajapuram. Here, you’ll find many layouts, such as Garden Street Layout, Akshayanagar, Muneshwara Nagar, Bovi Colony, Pragathi Layout, Hoysalanagar, Dr Ambedkar Nagar, and Gundappa Layout. It is still growing and hence you’ll always find some work happening here, be it pipe laying, road laying, construction and so on. Because of its ideal location, many people choose to live here. It is well connected and has many affordable housing options.

If you’re looking for a house on rent in Ramamurthy Nagar, then check these links –

1BHK flat for rent in Ramamurthy Nagar with pictures and videos

2BHK flat for rent in Ramamurthy Nagar with pictures and videos

3BHK flat for rent in Ramamurthy Nagar with pictures and videos

Properties for Rent in Jayanagar with photos and videos

If you meet any old Bangalorean, they will tell you that Jayanagar is one of the best places to live in the city. This locality is filled with old-world charm and is considered an affluent residential and commercial neighbourhood. This area is divided into wards and blocks, most commercial establishments fall in the 3rd and 4th block and the rest of the blocks are still very residential. As it is one of the oldest layouts in the city, you can find many old reputable schools, colleges and hospitals here. It is well connected to the rest of the city but is more peaceful as compared to other localities.

A house on rent in Jayanagar is easily available if you know where to look, here are a few options –

1BHK flat for rent in Jayanagar with pictures and videos

2BHK flat for rent in Jayanagar with pictures and videos

3BHK flat for rent in Jayanagar with pictures and videos

Properties for Rent in Varthur with photos and videos

Varthur is famous for its massive lake (yes, the one that catches fire and has toxic foam), but the lake is being clean and will be as good as new soon. It is also known for its amazing connectivity as it is between the Outer Ring Road and Whitefield, Sarjapur Road and NH 207(road to BIAL). You can travel to Whitefield, ITPL and the EPIP zone in a few minutes! Most IT professionals choose to live here also because of the number of schools and educational institutes here. There are malls, cinemas, hospitals and more in close vicinity.

To find a house for rent in Varthur, check the links below –

1BHK flat for rent in Varthur with pictures and videos

2BHK flat for rent in Varthur with pictures and videos

3BHK flat for rent in Varthur with pictures and videos

Properties for Rent in BTM Layout with photos and videos

BTM stands for Begur, Taverekera and Madiwala. This layout is a great residential layout and has 2 stages. The 1st Stage of BTM Layout is separated from the 2nd Stage by the Outer Ring Road. You’ll find many cafés, boutiques and music venues here along with offices, schools and hospitals. The roads are well planed and large, there are parks and malls and local markets you can enjoy. It is still growing and because of its greenery and good quality of life, it is an area that appreciates in value every year by almost 60%!

Find a home for rent in BTM Layout here –

1BHK flat for rent in BTM Layout with pictures and videos

2BHK flat for rent in BTM Layout with pictures and videos

3BHK flat for rent in BTM Layout with pictures and videos

If you are looking for commercial establishments or a house for rent in Bangalore, then trust NoBroker to show you the best options trust NoBroker to show you the best options and you can save on brokerage.

How to Find a Rental Home During the Lockdown

The lockdown has made life come to a standstill for most. With plans of moving to a new home, or a new city being cancelled or postponed. People are at a loss; how do we look for homes? How do we start the process when there is so much going on?

Many people have to move for new jobs, for schools, universities and so on. So, when the lockdown ends, do you want to start looking for a house? We think that you shouldn’t waste time! Now, you can find the perfect home, and move when the lockdown ends. This way, you get a jumpstart on your search and can start life in your new home when the lockdown ends; you get to carry on without missing a beat, with NoBroker.

It’s Time to Search and Shortlist 

Visit the NoBroker website, look for homes in the neighbourhood you desire. Set your budget, decide what amenities/facilities you need if you need furniture, how many bedrooms you need, and start your search. If you are overwhelmed with the options out there, speak to a Relationship Manager, they will provide you with assistance and see to it that your house hunting experience is a smooth one.

Contact Landlords from Home 

As soon as you find a house you like or a house that seems right for you, talk to the landlord and let them know. You don’t have to wait for a broker to share the landlord’s number, or for someone to talk to the landlord and then get back to you. Now, the power is in your hands, you can DIRECTLY talk to the landlord and strike a deal.

Check Out the Property 

If you can’t settle on a house just by looking at a few photos, we don’t blame you. If you have a Relationship Manager, let them know and they will arrange a special video walk-through and video conference so that you get a comprehensive look at the house and get all your questions answered. The landlord will show you around the house and tell you about the amenities and more, it’s as good as being there in person.

Move into your new house 

As soon as the lockdown is over, you can plan to move into your new home. Your landlord will be expecting you. If you have opted to get a Relationship Manager, then, they will be on standby to address any issues and to be of help during your move. You can even hire packers and movers, and home cleaners for your moving day now. You can sit back and relax, when it’s time to move, everything will already be in place for you.

Buy a Premium Plan 

If the whole house hunting experience seems like a daunting task, it’s time for a Relationship Manager to step in. NoBroker premium plans come loaded with benefits, the best being a dedicated Relationship Manager. They will look for houses on your behalf, shortlist houses based on your preferences and send you options you might like.

They will also arrange video walk-throughs, and calls with the owner, negotiate the rent on your behalf, and a lot more. All this is available with a NoBroker Post-paid Plan at just Rs.1! When you buy a plan through your credit card, you spend close to NOTHING when you start your house search and when the lockdown ends, the balance gets deducted.

If you don’t have a credit card, you can still buy our Premium Plans, these plans all come with a Plan Extension, especially for the lockdown period. This means you can buy the plan now, use all the features, and the plan’s start date will begin only when the lockdown ends! This means you get extended use of the plan and a lot more time to find your dream home.

Need more information or wish to talk to someone? Leave us a comment below, or visit NoBroker by clicking below, or even just give us a missed call on 9241700000. We’re happy to help.

Importance of A Rent Receipt

Whenever we make a purchase of any kind, we’re given a receipt to prove that the transaction happened when it happened, and also the cost and the method of the transaction. These receipts are an important way to keep track of our expenses and as proof that the transaction happened.

The minute you make an expensive purchase, the first thing you do is to check the receipt and keep it carefully. Paying rent is also a huge expense, hence we need to be just as careful about getting and keeping our rental receipts safe. Here are the other reasons why it’s important –

Read: No HRA? Know What Section 80GG of the Income Tax Act Means for You.

What is a rent receipt?

A rent receipt is a document that serves as proof of payment for the rent of a property. It typically includes the date of payment, the amount paid, the name of the tenant and landlord, and the address of the property. In India, rent receipts are often used for income tax purposes, as tenants can claim a tax deduction for the rent they pay.

Why rent receipt is important?

A house rent receipt is an important document in India for several reasons. For one, it serves as proof of payment for the tenant, which can be useful in case of any disputes with the landlord. Additionally, as mentioned, we use rent receipt for tax purposes, as tenants can claim a tax deduction for the rent they pay. This can result in a significant savings on taxes for tenants.

Another important aspect is that the Income Tax Department of India has made it mandatory to produce rent receipts for claiming HRA (House Rent Allowance) exemptions. This means that if you are living in a rented house and getting HRA as a part of your salary, you need to produce a rent receipt to claim the HRA exemption. For landlords, monthly house rent slips are important for keeping track of their income and expenses. Landlords can use rent receipts to claim tax deductions for the expenses associated with renting out their property, such as repairs, maintenance, and property taxes.

Essentially, a rent receipt is a document that serves as proof of payment for the rent of a property and it is important in India for several reasons, like income tax purposes, HRA exemptions, and keeping track of income and expenses. It’s always a best practice to keep all your rent receipts in a safe place, as they may be required at any point in time. The minute you make an expensive purchase, the first thing you do is to check the receipt and keep it carefully. Paying rent is also a huge expense, hence we need to be just as careful about getting and keeping our rental receipts safe. Here are the other reasons why it’s important –

Read: No HRA? Know What Section 80GG of the Income Tax Act Means for You.

To Save on TAX

When your salary is more than Rs.2.5 lakhs, you will need to pay a certain percentage as income tax. One way to save on the amount you pay is to claim HRA or House Rent Allowance that is part of your income. Then, you would not have to pay tax on the HRA slab of your income.

 You can claim this as long as you’re paying rent to a landlord or even if you pay your parents rent every month. To claim this as a deduction or to get a rebate on your Income Tax, you need to have proof that you are paying tax. This proof is in the form of Rental Receipts. Your company will ask you to submit these either every month or you will need to submit at least 3 to 6 receipts for this claim to be valid. To create Rent Receipts Click here.

To Maintain a Record

When you’re renting a house from a landlord, it’s best to have evidence that you’re paying your rent regularly and on time. Especially if you’re paying your rent in cash, you need something to document this transaction. If you don’t have any proof of the rent being paid, it could be easy for the landlord to evict you, he can claim that you’re not paying rent, and there is no proof you will have to show otherwise.

If your case does get taken to court, it is likely that they will rule in favour of your landlord, all because you don’t have rental receipts to prove otherwise.

To Settle Disputes

There are times when you and the landlord have a verbal agreement about who pays for repairs or maintenance and it gets adjusted in the rent. In the end, when you’re leaving a rent receipt will be clear proof of when you as a tenant paid for repairs, how many times, and how much. Without this, you could end up arguing with the landlord as there is no proof or record of why the rent amount paid was lower overall.

To Show Stability and Consistency

When it’s time to move to another rental home, your rental receipts will prove to the new landlord that you pay your rent on time, and regularly. This is a great way to build trust and show that you’re a good tenant. It is much easier to get a house when you have the right proof.

Generate Rent Receipts with NoBroker’s Online Generator

If you’re looking for a simple and convenient way to generate rent receipts, then check out NoBroker’s online rent receipt generator. This tool allows you and your landlord to easily create detailed and valid landlord rent receipts with just a few clicks. It’s perfect for both tenants and property owners who want to keep track of their rental payments and expenses all including digital copies of rent receipt images.

Not only that, but NoBroker also offers a range of other services to help you with your rental needs. You can check out their home deals and save thousands on brokerage fees, making it an affordable and cost-effective option for those looking to rent a property. And with NoBroker, you can be sure that you are getting the best deal for your rental property.

NoBroker also provides rental agreement service where you can get your rental agreement registered online with minimal effort and no involvement of any broker, saving you more time and money.All in all, NoBroker rent receipt generator is a great solution for those looking to easily generate rent receipts and manage their rental property. So if you’re looking for a hassle-free and efficient way to handle your rental needs, be sure to check out NoBroker’s online rent receipt today.

If you don’t know how to get a Rental agreement, then check NoBroker online rent receipt generator. This is a simple way for you and your landlord to get detailed and valid rent receipts. You can also check home deals on NoBroker and save thousands on brokerage. Click below to generator rent receipt.

FAQs

5 Ways You Can Save Money with NoBroker when Renting a Home

Changing homes is said to be a very stressful life event, this is no surprise to anyone who has shifted homes. Along with the stress, comes the expense, which also adds to the stress! At NoBroker the aim was to provide you with a simple, stress-free, and economical home shifting experience. Here are the top 5 ways that you end up SAVING MONEY when you use the NoBroker app to rent a house – 

1. No brokerage NoBroker connects the owner and tenant DIRECTLY.

There is no middleman, and because of this, no brokerage. This means that you get to save the 1 month’s rent or more that you normally have to shell out as brokerage fees every time you shift houses. You can even renew your rental agreement every year and not have to worry about paying anything extra to anyone. This freedom from brokerage can help you save BIG.

2. Smarter suggestions and fewer house visits

All the houses that are listed on NoBroker come with detailed descriptions. You’ll even find that most of the houses come with genuine pictures. The pictures and descriptions help you decide if you want to shortlist the house or not. Without these two main aids, you might have to visit much more homes before you can shortlist the ones you like. This additional information on the homes and the images, save your time and money. You travel less and visit fewer homes. This also means you take less time off; all this leads to more savings. We even have a Life Score Calculator that will show you the ideal place to live in. The suggested homes will help you save on commute times, rent, and even your carbon emission. You can try this here.

3. Many more options

When you use traditional house searching methods, you end up looking at very few homes that are suggested to you. If you decided to search on your own, might find even fewer! The benefit of using a house rental app like NoBroker is that you get 100’s of options in any locality that you choose. With this many options to choose from, you can easily find homes within your budget. You won’t be forced to choose from a few expensive options, you’re sure to find homes within, or for less than your budget.

4.  Help with negotiation

A lot of times we end up paying more for things because we don’t negotiate, or we don’t negotiate correctly. We noticed a lot of people pay almost 4-5% more than what they should be, all because they didn’t negotiate. With the NoBroker Relax plan and MoneyBack Plan, we provide you with a Relationship Manager. They will look for homes based on your requirements AND negotiate the rent for you! So, if you see a house that is slightly above your budget, your relationship manager can talk to the owner and negotiate on your behalf. You get to save money and live in the house that you really want.

5. Discounts on other services

When you use NoBroker you will see that there are a lot of other services that you can avail of from us. Rental Agreements, Packers and Movers, House Cleaning, Painting and a lot more. You will notice that the Packers and Movers service comes with an extra 5% DISCOUNT when you are a NoBroker Freedom plan customer.If you’re not a customer and just wish to use these services, you’ll see that the cost of these services is much lesser than any other website or app.

When you’re looking to save money on house shifting, there is no better app than NoBroker. Sign up and try it today. Click below to found out more.

FAQ’s

5 Mistakes to Avoid when Renting for the First Time

There are many first-time renters out there, and it’s not as easy as it looks to rent a house. There are always things that we tend to ignore/take for granted or plain don’t know about when we’re renting our first home.Here are the top mistakes to avoid when you’re looking to rent your first home.

Talking to the Neighbours or Current Tenants 

If you’re going to see the house the landlord normally accompanies you for the visit, they show you around the house/society and try to impress you with what you will be getting in the new house. They try to show you the best version of what the house has to offer, the reality is that there are always catches. The best way to find out what the catches are is to talk to the neighbours or current/previous tenants. This might not be possible on the first visit, which is why it’s better to go back again on your own and talk to these key people.

Asking Brokers for Help 

For first-time renters, getting a broker to step in and assist with getting a house, rental agreement and negotiating on their behalf seems like a good idea. The thought behind this is that brokers have done this 100’s of time and hence will do their best for you. This is not always the case, brokerage they get ranges from 15 days to 2 months of rent that you’re paying. This means that they tend to look for houses that are more expensive so that they can make a decent cut from it. You’re likely to go over your budget and spend extra on brokerage. Instead, you can try sites like NoBroker that will offer you the same services at a fraction of the cost. The home you find will be better matched to your requirements and will come without any hidden agendas.

Enticing Amenities 

Now, most posh building societies come loaded with amenities like tennis courts, swimming pools, saunas, basketball courts, etc. these are great added benefits to any home. The question is, as first-time renters, how often will you use them, would you ever use them? If you’re at work, you’ll probably be too exhausted at the end of the day and week to make use of it, so why pay extra for it? It’s better to look for a home with fewer frills as the rent would be more affordable, don’t fall for amenities that you would never make use of.

Recording and Reporting Damage 

At times new renters are so eager and excited to move into their new home that damages, stains and broken items in the home are overlooked. You might be keen to move in ASAP and start living, but beware as these small damages will cost you later. If you don’t report these damages before you move in, with proof, you will be blamed for it when you move out. All owners have a clause in the Rental Agreement that states something like- tenants will bare expenses for damages caused during their stay. This means you could end up paying to fix damages that you didn’t create and lose money from your deposit.

Reading the Rental Agreement 

Much like you tend to skip reading the ‘Terms of Service’ on most websites, products etc, you might be tempted to skip reading the Rental Agreement and sign it in a hurry. This is a big NO. The Rental Agreement will contain all the important Dos and Don’ts of your tenancy and will include things like rental increments, extra charges (parking etc.) pet policy, guest policy and so on. To avoid getting taken for a ride or facing the wrath of your landlord, it’s best to go through the Rental Agreement yourself and with a fine-toothed comb. If you follow these basic pointers, your first time renting will be a pleasant experience. The more you rent, the better you’ll get at spotting trouble and avoiding it as well. If you need help with finding your first home to rent, remember the experts at NoBroker are here to assist you with Rental Agreement 

If you’re looking for a house to move into, we at No Broker are here to help you out. To know more, click on the link below. 

The Complete Guide to Renting a Home in India

Before renting a home there are plenty of factors to consider such as location, type of house, number of bedrooms needed, your budget and the location of this house. Once you figure all these things out, you can start the search process. If you’re searching on a site like NoBroker, you can search for a home as per your criteria using the filters provided or let a personal assistant aka Relationship manager from the company do it for you.

Now, you have a house that you like, do you just move in? No, before you move in there are a few checks that you need to do, these checks will ensure that the house you choose is in good condition, won’t give you trouble and one where you can live in comfort.

Rental Agreement 

Make a note of the terms and conditions mentioned in the rental agreement. Don’t sign a document if you don’t understand it clearly or if there are terms that you do not agree to. Let the landlord know that the terms are not ok, get them modified before you sign this document and move in, otherwise it will be too late to change anything. Also, ask about the deposit needed and why the landlord would withhold the deposit. Learn more about how to create a Rental Agreement here.

Guest Policy 

Check if your landlord has any rules about how many guests you can have staying with you and what can be their maximum duration of stay. Most landlords don’t bother about guests, but depending on your gender, and if you’re staying with family or staying alone, the rules might change.

Pet Policy 

Some landlords have a very strict NO Pets policy, if you don’t check with them before you move in, it could spell trouble and you might have to move out or rehome your pet. Sometimes, the No Pet policy could be one that is enforced by the building society and not the owner. If the owner is not clear about the policy, check the rules of the building or society.

Parking 

Does the house or apartment/society have enough parking for you? You need to check with the landlord if the house comes with a car or bike parking, if the parking space is covered and if you need to pay extra for the space. If the house does not have a parking space, you need to check if there are free spaces in the building that you could rent out.

Security 

Apart from checking if the house is in a safe neighbourhood, you also need to see if the house has enough safety and security features. Look for things like security guards in the building, CCTV, intercom systems etc. or if they have a security management system like NoBroker Hood. In the house, look for grills on the windows, locks on the main door, smoke detectors, sprinklers and so on.

Condition of the House 

How has the house been maintained? If the house is falling apart on the inside, it’s a good idea to stay away from it. Sometimes the owner might use a fresh coat of paint to hide cracks and water damage, but if you look closely, you’ll be able to spot these flaws. If the house hasn’t been painted, ask the owner to do so. It is a normal practice to paint the house before new tenants move in. If the owner says the painting is done, do find out when it was completed. If the painting looks shoddy, that will tell you that the help the landlord has hired is below par, this could mean other things like the plumbing, electrical wiring etc. laid by him could be shoddy too.

Furniture and Appliance Check 

If the house comes semi-furnished or fully furnished, check the condition of the furniture and appliances. Does the fan work, does the geyser or solar heater function as it should? Also, the beds and other furniture should be in decent working condition with minimal wear and tear. There is no point in paying extra for furniture and appliance that you can’t even use.

Water check 

Check if there is a continuous water supply to the house or if there are water problems in the house. Also, find out what the water source is, is it coming from a bore well or is it from the corporation water supply or are water tankers required. Check if the water pressure from the pipes is enough, the water from your faucets should never be just a trickle. For drinking water, check if there is a water purifier that comes with the house or water canisters need to be purchased.

Gas Supply 

When visiting the house, do ask about the gas supply. Is it through the city’s gas pipeline or gas cylinders? If it is the latter, check about the company the gas comes from and their policies.

Smell Check 

No matter how beautiful your apartment might look, if it smells bad, you will not enjoy living there. The smell could be from an open drain nearby, a garbage dump around the corner or a broken septic tank. So, make sure to go from room to room and see that things smell right.

Noise Check 

If your home is too close to a main road, metro, railway line or airport you might not get the kind of peace you deserve. If you’re looking for a quiet home, you need to check the kind of noises you can hear from the inside of your home, especially in the bedroom and study.

Access to Commodities 

If you find a beautiful house in the middle of nowhere, life is going to be hard. You need to check how close important things like shops, supermarkets, public transport and health care is to the home. The further away you are from these necessities, the more you will end up spending on them.

Redecoration

Most owners don’t like or allow tenants to make changes to the layout of the house or modify it. Some owners are even sensitive about making holes in the walls for nails. To avoid annoying your landlord and losing your deposit, it’s better to check with him what you can and can’t do when you want to redecorate.

Broadband and WiFi check

If you’re someone who depends on the internet for work or even for leisure, it’s best to check if there is an existing connection to the house. If there isn’t one, check who the best service provider is in that locality and how long it would take for them to set up. If you know this information beforehand, you could save time by setting this up before moving in.

Landlord and Neighbours 

When talking to your landlord, try to figure out what kind of person he is. Read his behaviour and look for signs of trouble. See if he is the type to nit-pick, be over inquisitive, or the kind who would drop by often. If he tries to control everything that happens in his home when you are staying there, it’s not a good idea to move there. At times you might be lucky and get a great landlord but be stuck with nosy or noisy neighbours! Look out for the two and choose wisely.

There are plenty of homes to choose from, NoBroker has new homes added every day, so why settle for a home that’s less than perfect. Look out for these signs of trouble and find a home to rent, that you’ll be happy in always. Click below to search for homes.

Guide to Moving Out from Rental Home

Moving out of an apartment is an exciting, as well as frustrating experience. Exciting as you’re moving on to a new place and frustrating because you were so comfortable in the place you called home for months or even years. You sort of getting used to the place, just the thought of finding similar conveniences in a different place can be excruciating. With multiple things going on, it’s easy to overlook some of the most important steps to consider while vacating a property.

Here are tips to help you end the tenancy on good terms with your landlord.

Rental Agreement

Review your agreement once again, and check the terms and conditions agreed upon at the time of signing. Know your obligation regarding the notice period, security deposit recovery, and conditions of the apartment when moving out. Failing to fulfil those conditions could mean you would have to pay a penalty or face a loss in terms of your security deposit. If you end your tenancy on bad terms with your landlord your credit rating, references and security deposit will be at stake. For more details click here.

In case you have to Vacate Early

Maintaining a good equation with your landlord always helps to ease things and makes the process less of a hassle. For instance, due to any unforeseeable circumstances, if you had to end your tenancy earlier than due, a good relationship might come in handy to reduce or remove the penalty due. Just make sure to inform your landlord about your situation as soon as possible. If you have a decent relationship with your landlord, they may understand your position more willingly. Offer to help find a new tenant, as this might give them peace of mind, you can even help to list their home on NoBroker to get a good tenant for them faster. Doing this will also remove your responsibility to pay rent for the period when the apartment remains vacant.

Know your Rights

If your landlord has violated the terms of the lease, you may have the legal right to move out without any advance notice prior to the lease end. When facing an imminent move, everyone’s concerned about getting the security deposit back. If you have met all terms of the agreement and have not caused extensive and irreparable damage to the property, you may be able to get the most of your deposit back.

Moving

While it is common practice to call packers and movers, ensure that you check everything personally before moving out. There could be some furniture belonging to the landlord and some that you brought. Ensure that the packers and movers sort out what to take and what to leave behind based on this. It would help to take out all the items you don’t want to move to your new place and leave the current place as clutter-free as possible. Remember, it’s not your landlord’s responsibility to dispose of your stuff. To Book packers and movers Click here.

Conduct a thorough Inspection

while you are not responsible for the pre-existing issues, make sure you keep records of damaged things. It’s always a good idea to document everything immediately after you move in just to have evidence in case of any issue. Also, notify your landlord about any damage or appliance malfunction, if possible, in writing as soon as it occurs.

Know your Landlord’s Rights

Some types of changes during your stay are normal and acceptable such as cracks in the wall, fading of paint, etc. Landlords can charge you for the cleaning and repair services necessary to fix the damage that you personally have caused to the property. The idea is to restore the property and make it tenant-ready. Leave your apartment sparkling clean before moving out. If you try to escape doing this, the landlord can either ask you to call someone and do it or let him deduct the money from your deposit to do this. For more details click here.

Important Things to Remember on Moving Day

There are a few things you must be careful of on moving day in addition to planning the actual move. Check the property your are leaving for:

• Verify that you didn’t forget to take anything or leave anything important behind.
• Get readings from the metres for gas, electricity, and water. Take photographs for future reference. 
• Make sure you turn off all appliances and close all main water and gas valves.
• Lock all the doors and windows.
• As proof of the property’s move-out condition, take pictures of it.

In your new home, you ought to:

• Take pictures of the flat in move-in condition
• Look over the move-in list and note any problems.
• Check the smoke detectors.
• Verify the operation of the gas, power, and water.

Read: How To Survive Landlord Inspections

While all the above are crucial, it would be good to have a moving-out checklist handy so that big and small stuff can be taken care of, so you can relish a tension-free moving experience. If you need help choosing Packers and movers we suggest you try the Packers and Movers at NoBroker.com. Click below to find out more.

FAQ’s