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10 Reasons Why You Should Opt For “Zero Rent and Heavy Deposit” System in Mumbai

By on August 27, 2015

Whenever a landlord rents out a property, he or she needs to think about the clauses and whether the tenants would be offered a lease or a rental agreement. Besides this, there are also other factors that the landlord needs to figure out like the deposits, the rental amount, the time for payment of rent, inclusion or exclusion of other charges etc. All of these are maintained in the document whose copy is shared with the tenant for future references. While the landlord may provide a lease which has a set term, say for six months for the tenant to stay in the property, the rental agreement are usually for month on month basis. While the lease ensures that the landlord and the tenant adheres to the agreement, the rental agreement can be changed accordingly.

One of things that is rapidly gaining popularity in certain suburbs of Mumbai is the zero rental scheme wherein apartments are given out on rent at zero rental and payment of a huge deposit. This is becoming extremely popular in Vasai – Vihar areas, however, the catch is the heavy deposit. This process has infact turned the leave and licensed agreement come to a stop, and all this is applicable only when the house is returned to the owner in its original condition. The following are some of the benefits of the following scheme:

1. The owners believe that heavy deposits from Rs 2 lakhs to Rs 5 lakhs would ensure that the flats are returned in their original condition when the tenants leave from their flats on rent in Pune.

2. Once the proper leave and license agreement has been made and signed, the owner and the tenant doesn’t need to contact each other till the end of the agreement.

3. When the landlord gives their flats on rent, each time a tenant vacates, they usually have to shell out a bomb for repairs and other maintenance as the new tenant would ask for it. This agreement ensures that nothing of that sort happens.

4. Sometimes some of the tenants would also not pay their utility bills. Then the deposit amount of mere Rs 25,000 or Rs 50,000 does not suffice. The huge deposit helps in solving all these issues.

5. Even the tenants are greatly open to this idea of zero rental scheme because they don’t have to bother payments of rent every month. The tenant would occupy the house and its furnishings for the period mentioned in the contract, after which he or she would need to vacate the flat.

6. Once the tenant has completed his stay in the flat as per the contract, the entire deposited amount would be returned to him or her.

7. The real estate agents are gung ho about this scheme because they think that since there is no rent involved, most of the tenants take good care of the flat in lieu of getting back the heavy deposit that was submitted.

8. The landlord too finds the scheme attractive for the amount can be invested and there is no hassles for monthly deposits as rent. Big cash deposit investment is a wiser decision.

9. The real estate owners takes the cash for a year and forgets about the tenant. When they give their flats or apartments on rent in metropolitan cities Mumbai, Bangalore, Pune or Hyderabad they don’t mind renting out the property for more than a year also.

10. Tenants especially those who are newly married or have transferable jobs prefer this zero rent scheme to others.
Zero rental schemes are attractive especially when the payment needs to be done only once and the deposit is returned once the contract gets over.

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