Mumbai's renting culture
Aashika Anil | Mumbai
Mumbai is a land of opportunities. This metropolitan city is so diverse that every person that comes here has the chance of making it big. Mumbai did not become a city of dreams overnight rather we can date it back to the when the British still ruled the country. Bombay then was a port city, had a railway system and was an important industrial location. This has always been an attraction for Mumbai and thus been a reason for the increase in the population of the city. People from all around the country come to this city hoping for a good job and hoping to better their standard of living.
The impact of urbanisation in Mumbai has thus made the city the most populous city in India with a population of 22.05 million as of 2018. For this increasing population there must also be accommodation. Most migrants come to the city with the hopes of making it big and thus are not financially capable to buy houses in this expensive city. Since property prices are high they opt to rent places till they save up enough to buy themselves a house. However, there can be various issues regarding renting houses in Mumbai and this paper will try to discuss these issues in detail.
Various landlords have various criteria for selecting their tenants. However, after this long process of sifting through applicants, when the landlord finally finds a candidate he likes he must get a No-Objection Certificate from the police. However, in 2015, the Mumbai police issued a circular that stated that henceforth no NOC from the local police would be required to obtain or to let a property on rent in the city. The landlords on the other hand would only need to send the agreement copy to the cops through registered post. The issue with the earlier system of police clearance was that the brokers would charge high fees from the landlord or the tenant to get a NOC from the police and this system would be a hassle for both because they would have to spend their day in the police station waiting for it. This although does not mean that the police are going to be unaware of the person that has rented your area. The landlords are required to send a copy of the rental agreement signed between the two parties which would be recorded in the police station.
Once the document is received, the station would then issue an acknowledgement receipt which would serve as proof that the data is now with the police. If the data is found to be incorrect, the owner will be penalised. This seems like a good measure when keeping in mind corruption and convenience for citizens, although this step could also be a safety hazard.
Once a landlord finds a party interested in renting his area, he must now draw up the rent agreement. The Maharashtra Rent Control Act, 1999, states under section 55 (1) that, “any agreement for Leave and License or letting of any premises entered into between the landlord and the tenant or the licensee, as the case may be, should be in writing and should be registered under the Registration Act, 1908.” However, the stamp duty on Leave and License agreements according to Section 36A of the Bombay Stamp Act, 1958, sets the amount at 0.25% of the taxable annual rent and deposit combined. Thus, sometimes the amount for stamp duty might even come up to Rs.1000. Thus, to save up money, a lot of people tend to make notarized rent agreements that are quicker and easy on the wallet.
This although is not the legal policy and thus when dispute arises in such a situation, according Section 55 (2), “the contention of the tenant about the terms and conditions subject to which the premises have been given to him by the landlord on leave and licence or have been let to him, shall prevail, unless proved otherwise.” A simple notarized agreement holds not real value and authorities have been asked to not accept these agreements anymore. Failure to register the rent agreement also deprives the states the revenue it would otherwise receive from the transaction and thus is completely unacceptable. However, since most people that look to rent are migrants who only have limited money, even renting houses might seem expensive on their low budget. Thus, it is very harsh on the tenants who might have to settle for places far off from their workplace increasing cost of transportation also.
Agreements are usually decided for a period of 11 months. For as long as the agreement states, the house is yours. Since buying a large space would cost one more, most people just buy small houses and modify them to their liking. One however cannot imagine that this modification of one’s house requires the nod of the Municipal Corporation. According to the Development Control Regulations for Greater Bombay, 1991, “No person shall erect or re-erect a building or alter any building or carry out any development or redevelopment, on any plot or land or cause the same to be done without first obtaining separate development permission and a commencement certificate from the Commissioner.” There are also some tenantable repairs under Section 342 of the BMC Act,1988, that can be carried out without their permission provided that the structures to which such repairs are to be carried out have been constructed with approval from the Competent Authority.
These tenantable repairs only include issues like plastering, painting, pointing; changing floor tiles; repairing W.C., bath or washing places; repairing or replacing drainage pipes, taps, manholes and other fittings and other such activities that do not affect the structural foundation of the building one lives in. One such terrible instance was the collapse of an old building in Ghatkopar which led to the death of 17, where the owner of the flats on the ground floor decided to make certain modifications to the structure of the building jeopardizing the lives of its residents. According to the Enquiry Committee Report the structure was too old to be able to handle such modifications. Thus, one can understand how essential it is to seek the nod of the M.C.G.M. before conducting any modifications to one’s house or flat.
Migrants constrained for money and desperate need for a roof above their heads tend overlook these small details regarding rent agreements and areas they occupy under rent. A landlord too seems to be satisfied to have a tenant pay his rent. However, the long-term repercussions of these fast arrangements are not understood. When renting an area, the landlord and the tenant must make sure everything has been done legally or in the long run they might put both parties in trouble. The property prices in Mumbai are extremely high, thus even rents are higher than normal. But the people that come to this city come her with a dream of being successful in life or even just being able to provide for the needs of their family and provide them with a better standard of living thus they will do anything to make ends meet.
Support The Draft by sharing this story.
Mumbai is a land of opportunities. This metropolitan city is so diverse that every person that comes here has the chance of making it big. Mumbai did not become a city of dreams overnight rather we can date it back to the when the British still ruled the country. Bombay then was a port city, had a railway system and was an important industrial location. This has always been an attraction for Mumbai and thus been a reason for the increase in the population of the city. People from all around the country come to this city hoping for a good job and hoping to better their standard of living.
The impact of urbanisation in Mumbai has thus made the city the most populous city in India with a population of 22.05 million as of 2018. For this increasing population there must also be accommodation. Most migrants come to the city with the hopes of making it big and thus are not financially capable to buy houses in this expensive city. Since property prices are high they opt to rent places till they save up enough to buy themselves a house. However, there can be various issues regarding renting houses in Mumbai and this paper will try to discuss these issues in detail.
Various landlords have various criteria for selecting their tenants. However, after this long process of sifting through applicants, when the landlord finally finds a candidate he likes he must get a No-Objection Certificate from the police. However, in 2015, the Mumbai police issued a circular that stated that henceforth no NOC from the local police would be required to obtain or to let a property on rent in the city. The landlords on the other hand would only need to send the agreement copy to the cops through registered post. The issue with the earlier system of police clearance was that the brokers would charge high fees from the landlord or the tenant to get a NOC from the police and this system would be a hassle for both because they would have to spend their day in the police station waiting for it. This although does not mean that the police are going to be unaware of the person that has rented your area. The landlords are required to send a copy of the rental agreement signed between the two parties which would be recorded in the police station.
Once the document is received, the station would then issue an acknowledgement receipt which would serve as proof that the data is now with the police. If the data is found to be incorrect, the owner will be penalised. This seems like a good measure when keeping in mind corruption and convenience for citizens, although this step could also be a safety hazard.
The whole idea behind this system was to make the neighbourhood feel safe as well as for the police to clearly identify if the person has criminal records or not. This process would also help instil a sense of fear in the person renting the house. However, the new method seems to be a little weak in its approach towards illegals and dangerous people that might put neighbourhoods at risk.
Once a landlord finds a party interested in renting his area, he must now draw up the rent agreement. The Maharashtra Rent Control Act, 1999, states under section 55 (1) that, “any agreement for Leave and License or letting of any premises entered into between the landlord and the tenant or the licensee, as the case may be, should be in writing and should be registered under the Registration Act, 1908.” However, the stamp duty on Leave and License agreements according to Section 36A of the Bombay Stamp Act, 1958, sets the amount at 0.25% of the taxable annual rent and deposit combined. Thus, sometimes the amount for stamp duty might even come up to Rs.1000. Thus, to save up money, a lot of people tend to make notarized rent agreements that are quicker and easy on the wallet.
This although is not the legal policy and thus when dispute arises in such a situation, according Section 55 (2), “the contention of the tenant about the terms and conditions subject to which the premises have been given to him by the landlord on leave and licence or have been let to him, shall prevail, unless proved otherwise.” A simple notarized agreement holds not real value and authorities have been asked to not accept these agreements anymore. Failure to register the rent agreement also deprives the states the revenue it would otherwise receive from the transaction and thus is completely unacceptable. However, since most people that look to rent are migrants who only have limited money, even renting houses might seem expensive on their low budget. Thus, it is very harsh on the tenants who might have to settle for places far off from their workplace increasing cost of transportation also.
Agreements are usually decided for a period of 11 months. For as long as the agreement states, the house is yours. Since buying a large space would cost one more, most people just buy small houses and modify them to their liking. One however cannot imagine that this modification of one’s house requires the nod of the Municipal Corporation. According to the Development Control Regulations for Greater Bombay, 1991, “No person shall erect or re-erect a building or alter any building or carry out any development or redevelopment, on any plot or land or cause the same to be done without first obtaining separate development permission and a commencement certificate from the Commissioner.” There are also some tenantable repairs under Section 342 of the BMC Act,1988, that can be carried out without their permission provided that the structures to which such repairs are to be carried out have been constructed with approval from the Competent Authority.
These tenantable repairs only include issues like plastering, painting, pointing; changing floor tiles; repairing W.C., bath or washing places; repairing or replacing drainage pipes, taps, manholes and other fittings and other such activities that do not affect the structural foundation of the building one lives in. One such terrible instance was the collapse of an old building in Ghatkopar which led to the death of 17, where the owner of the flats on the ground floor decided to make certain modifications to the structure of the building jeopardizing the lives of its residents. According to the Enquiry Committee Report the structure was too old to be able to handle such modifications. Thus, one can understand how essential it is to seek the nod of the M.C.G.M. before conducting any modifications to one’s house or flat.
Migrants constrained for money and desperate need for a roof above their heads tend overlook these small details regarding rent agreements and areas they occupy under rent. A landlord too seems to be satisfied to have a tenant pay his rent. However, the long-term repercussions of these fast arrangements are not understood. When renting an area, the landlord and the tenant must make sure everything has been done legally or in the long run they might put both parties in trouble. The property prices in Mumbai are extremely high, thus even rents are higher than normal. But the people that come to this city come her with a dream of being successful in life or even just being able to provide for the needs of their family and provide them with a better standard of living thus they will do anything to make ends meet.
Support The Draft by sharing this story.
