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20L deposit for rental. What should I do?

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20L deposit for rental. What should I do?

Last updated: May 26 2007
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  • 20L deposit for rental. What should I do?

    Hi all

    I need advice. I'm about to rent a flat in Mumbai - the package is 30K.

    Along with monthly rent, Mumbai landlords require a deposit which is returned when tenant leaves.

    Typically the 30K would breakup as 27K rent and 3L deposit.

    1L in deposit is considered as 1K interest income every month.

    But my landlord says he needs money and is requesting 20L deposit and 10K rent. The 20L deposit would yield 20K interest income every month.

    Surprised and dont know how to respond. Any advice?

    I can arrange for 20L deposit. But is this risky proposition?
  • #2

    #2

    Re : 20L deposit for rental. What should I do?

    Heavy Deposit is a dicey proposition

    Hi Buddy
    Getting back the heavy deposit back is a problematic
    sometimes owners dont have it ready when your agreement expires or is terminated earlier. Then you have no option but to stay there and wait till the owner gets another tenant who would pay the deposit and u get it back..
    And with such heavy deposits, make sure your leave license agreement secures it well along with a penalty clause for delay in refund.

    Be extra careful to check if the house has a home loan pending. If thats the case, ensure you get a NOC for renting from the HFC

    And dont forget to get a good lawyer to do the doucmentation
    Ram
    Pinnacle Realty
    Ram

    Comment

    • #3

      #3

      Re : 20L deposit for rental. What should I do?

      Originally posted by Pinnacle View Post
      Hi Buddy
      Getting back the heavy deposit back is a problematic
      sometimes owners dont have it ready when your agreement expires or is terminated earlier. Then you have no option but to stay there and wait till the owner gets another tenant who would pay the deposit and u get it back..
      And with such heavy deposits, make sure your leave license agreement secures it well along with a penalty clause for delay in refund.

      Be extra careful to check if the house has a home loan pending. If thats the case, ensure you get a NOC for renting from the HFC

      And dont forget to get a good lawyer to do the doucmentation
      Ram
      Pinnacle Realty
      Pinnacle - this advice is invaluable. Thank you.

      I plan to:

      1. Check if house has pending home loan. How to do this? You mean just ask landlord?

      2. Include in lease that if deposit not returned, I get to stay for Rs 1 rent

      3. If deposit returned late - I need it with 18% interest

      Any recommendations for lawyer?

      Thanks again!

      Amit

      Comment

      • #4

        #4

        Re : 20L deposit for rental. What should I do?

        Originally posted by amitsingh08 View Post
        Pinnacle - this advice is invaluable. Thank you.

        I plan to:

        1. Check if house has pending home loan. How to do this? You mean just ask landlord?

        2. Include in lease that if deposit not returned, I get to stay for Rs 1 rent

        3. If deposit returned late - I need it with 18% interest

        Any recommendations for lawyer?

        Thanks again!

        Amit
        Ask landlord if he has taken loan. Double Check with the co-operative housing society or the builder is the society is not formed or registered. Loans are recorded with a copy of lien letter with the society or builder.

        Put a clause that in case deposit is not refunded, you dont have to pay rent for such period till it is not refunded and you recieve interest * 18% or more

        And most important of all, look at the financial condition of the landlord. If he seems the kind who doesnt manage his finances well, you are in for a long fight to get your deposit back

        As for a lawyer, try Anil Harish & Co in Mumbai
        Ram
        Ram

        Comment

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