Deciding whether to rent or buy a home is one of the most significant financial choices you’ll ever make. For many, the idea of homeownership is a long-term goal, but not everyone is ready to take that leap – whether due to financial constraints, lifestyle considerations, or simply not feeling mentally prepared. Renting can offer a flexible, lower-commitment alternative that aligns better with your current situation. In this article, we’ll explore why renting might be the right choice for you, especially if you’re not yet ready to buy, and provide practical guidance on making the most of your renting experience, factors to consider when renting a home, and more.
When is the best time for a home seeker to rent an apartment?
To know the best time to rent an apartment, it is crucial to understand how renting fits into your current financial situation. Renting can be advantageous for those who are not yet ready to buy a home of their own or are still building their financial stability. It offers freedom from the substantial financial commitments associated with homeownership, such as down payments, mortgage payments, and maintenance costs. Let’s discuss why renting can be a smart choice if you are not yet ready to buy a home.
Why renting could be the smart choice if you’re not ready to buy a home?
Renting could be the smart choice if you’re not ready to buy a home for several key reasons:
Lower financial commitment: Renting a home is less expensive than buying a home. You don’t need to pay a large downpayment. Upon searching well, you can easily find apartments that fit your budget. By renting a home, you can save on property taxes, homeowners insurance, and other homeowner expenses, giving you ample opportunities to save for the future.Â
Flexibility: Renting can offer flexibility regarding moving in and out based on personal or professional circumstances.
No/Low maintenance responsibilities: Compared to homeownership, where substantial costs like property maintenance, major repairs, etc. are a part of daily life, renting offers significant relief.
Financial cushion: Instead of committing to a mortgage, renters can use their funds for future investments.
Time to access long-term goals: Renting gives you ample time to assess your long-term financial goals while offering stability. By avoiding the hassle of incurring homeownership costs, you can focus on your personal growth, career advancement, and financial planning.
When to start looking for an apartment
It is important to start looking for a home on rent at the right time to avoid unnecessary stress. Ideally, the search should begin at least 2-3 months before you plan to move in. During this timeline, you can look for various localities, compare multiple properties, and take a site visit to find the best fit. Doing so is particularly beneficial when it comes to looking for a rented home in major Indian cities where rental markets can be competitive. You can manage the logistical aspects of moving in by giving yourself this buffer period. Finding a home on rent takes time, as you should only consider moving into a place when you have thoroughly inspected the place, neighbourhood, surrounding amenities, etc. To make your search for a rented home a breeze, we’ve listed some key things to consider while looking for a rented apartment.
How seasonal trends affect rental costs and availability in India
From a timing perspective, seasonal trends and personal factors generally influence the best time to rent an apartment. Here’s a breakdown:
Peak period (January-March)
Many people prefer to move during this period because the new year marks a fresh start for many individuals and families. Also, this is a common time for appraisals and bonuses; hence, more movement is recorded now.
| Pros | Cons |
| The higher the availability of rental options, the more choices there are. | Higher demand might lead to higher rental rates. |
Post-Monsoon (April-May)
After the monsoon, the weather is pleasant, making moving easier. Hence, this season is great for looking for an apartment for rent.
| Pros | Cons |
| Good weather conditions for moving, less crowded than the peak period, and often stable rental rates. | Limited availability compared to the peak season, though still reasonable. |
Monsoon Months (June-September)
Movement typically decreases during these months due to the challenges posed by the heavy rains.
| Pros | Cons |
| Lower demand can result in better rental deals and more flexibility in negotiating terms with landlords. | Difficult moving conditions due to rain, potential delays in apartment viewings or maintenance issues. |
Overall outlook: As per the seasonal trends in India, the best time to move can be different for each individual as it mainly depends on one’s personal choices. If you like a wide selection and want better deals, the peak period (January-March) might be best for you.Â
For a more relaxed process and better rates, consider moving in April-May.Â
Key factors to consider when looking for a rented apartment
Research the locality well: Select a location for your search that is close to your place of employment or college. This would save not only your commuting time but also the travelling cost. Search for the amenities necessary for your daily activities, such as banks, supermarkets, and hospitals. You would also want to ensure safety and security when you leave your home. Check if the locality has CCTV surveillance systems and watchmen or guards to protect your home when you are out.
Read your rent agreement thoroughly: Thoroughly review the sections of the rental agreement that indicate how long you can stay and when your landlord can request a rent increase before signing the contract. Talk to someone and have any clauses you disagree with modified.
Know your rights: You have certain restricted rights over the rented property, which you should be aware of to maintain good communication with your landlord. For example, your landlord is not allowed to control your schedule, keep you from having guests, or set an hour for you to get home. A landlord can also not ask you to vacate the property before the date mentioned in the agreement.
Apartments closer to CBDs: Apartments closer to Central Business Districts (CBDs) typically have higher rents due to their convenience and access to amenities. This premium reflects reduced commute times and an enhanced lifestyle. On the other hand, renting farther from the CBD can lower rent but may lead to longer commutes and higher transportation costs. Balancing the higher rent against the potential savings from a longer commute is essential for finding the right apartment based on your budget and lifestyle preferences.
Do the basic check: You wouldn’t want a choked bathroom sink or damaged electrical fixtures, would you? Ensure that the lights function properly and the water flow is acceptable by running each tap and pressing the buttons. Also, check that the house is freshly painted and there is no seepage inside the home.
Read meters: Very carefully read the electrical meter before you move into a rented property. It is important to do so to check the accuracy of the bills. Do not hesitate to ask the landlord if there are any dues.Â
Talk to neighbours: Your neighbours could be the best people to give you the right opinion about the house, locality, and your landlord. Â
Get a clean home: Ensure the house is clean before you move in.Â
Lack of formal rental agreements: In cities like Bangalore, some landlords do not insist on registering rent agreements, especially in areas with high demand from the IT workforce. The frequent movement of tenants in the tech sector can lead to informal arrangements, where landlords may prefer quick agreements without formal registration to save time and costs. However, it’s always advisable for both parties to register the agreement to ensure legal protection.
Common rental practices followed by landlords in India
11-month rental agreements: In most Indian cities, landlords prefer to sign rental agreements for 11 months. This is done to avoid stamp duty charges, as agreements shorter than 12 months are not required to be registered under the Registration Act of India.
Security deposits: Large security deposits are common in cities like Mumbai and Bangalore. Landlords in these areas may ask for deposits ranging from 6 to 12 months’ rent, although some cities have capped it at 2-3 months.
Unregistered agreements: As seen in IT hubs like Bangalore, landlords may skip formal registration of rental agreements due to the frequent turnover of tenants. This informal arrangement allows for quicker deals.
Maintenance charges: In many cases, landlords shift the tenant’s responsibility for minor repairs and maintenance, especially in high-demand rental markets where tenants are willing to accept these terms.
Preference for family tenants: Landlords may prefer renting to families rather than bachelors or students in certain areas, believing that families are more stable and reliable tenants.
Frequent inspections: Some landlords, particularly those who live near the rental property, may conduct frequent visits to check on the house’s upkeep, especially if it’s rented out to single tenants or groups of students.
Essential guidelines for finding the best rental property
- Stick to your budget: While searching for a rental home, staying within your budget is crucial. Looking at numerous properties can make you go off track. Always factor in your income, savings, and monthly expenses to come to an amount you can easily set aside for rent. Also, remember that renting an apartment comes with added expenses such as utilities, maintenance charges, potential rent increments, etc.
- Location of the property: Start by fixing the areas that are convenient for you in your situation. Stick to that list and narrow it down to the best possible option. Whichever area you choose, ensure that it is safe, has ample parking space, and is near schools, hospitals, local markets, etc.
- Safety and security: Make sure that the area of your choice is safe and secure. It would be best to look for a locality with proper barricading, security guards, CCTV surveillance, etc.
- Maintenance charges: You should discuss the property maintenance charges with your landlord beforehand. While small fixtures and fittings are usually taken care of by the tenants, any major fixes, such as seepage, the colouring of walls, etc., may become a topic for debate. Hence, discuss all these aspects clearly with your landlord.
- Rental agreement: Before signing the rental agreement, review all the terms and conditions and ensure you agree to them. If you do not understand any terms, you should speak to your landlord before signing the agreement. Also, ask your property owner about the deposit amount you must give before moving into your chosen house for rent.
- Ownership/Title check: Conduct a title check for the ownership of the house. This helps avoid any potential rental scams.
- Check the property condition: Look for signs of damage. Cracks in the walls, leaking pipes, or faulty electrical wiring should be discussed with the landlord. Ensure to also check the condition of the appliances, fixtures, and fittings.
- Negotiate the rent: Many times, the rent is negotiable. If the property has not been lived in for a while, or if you can commit to a longer lease term, the landlord may be willing to reduce the rent. While it is important to not hesitate to negotiate, it is important to be respectful and realistic.
What documents are needed for getting a rental apartment?
Before moving into your new rental apartment, you will need to submit a list of documents for getting an approved rental agreement. The documents are as follows:
- ID Proof: Aadhar card/passport/ Voter ID card/ Driving license
- Permanent address proof: Bills/Bank statements/previous rental agreements
- Proof of employment: Employee ID card, employment letter, ITR forms, etc.
- Photographs: Passport-sized photographs
- Landlord Reference: A reference or no-objection certificate from your previous landlord
- Marriage Certificate: If applicable, to establish the relationship with co-tenants (e.g., spouse)
Understanding rental deposits in different cities
One of the most important considerations when renting an apartment is the deposit amount. This upfront payment can be a financial burden, especially in cities.
In Mumbai and Bangalore, renters should be prepared for higher deposit sums than renters in other cities. In Mumbai, deposits can often be as high as 3-6 months’ rent, reflecting the city’s competitive real estate market and high demand.Â
When it comes to real estate, Mumbai is one of the most expensive cities in India. The high property values translate into higher rental deposits. It has been observed that landlords often require larger deposits as a safeguard against potential damages or non-payment of rent.
For example, if the monthly rent for an apartment is ₹50,000, the deposit could range from ₹1.5 lakh to ₹3 lakh.
Quite similarly, in Bangalore, the deposit sums are very high. Renters are usually expected to pay in advance 2-4 months of rent. This is major because Bangalore is a growing IT hub and attracts many people. Hence, the rental demand is quite high as compared to other cities. Similar to Mumbai, landlords in Bangalore have been observed to take higher deposits.
| City name | The average security deposit range |
| Bangalore | 6-10 months |
| Mumbai | Approximately 5-6 months |
| Pune | 2-6 months |
| Gurgaon | 2-3 months |
| Delhi | 2-3 months |
| Hyderabad | 2-3 months |
| Noida | 1-2 months |
How to negotiate rent with your landlord
While some landlords may not be willing to negotiate, you can still get a discount if you have done your research well. Here are some tips on how to negotiate rent with the landlord.
Do your research: Research the average rental costs in the area to know what is reasonable. Today, you can find this information easily on various property search websites. Identify similar properties to your choice to support your negotiation.
Highlight your strengths as a tenant: Emphasize your timely rent payments and good maintenance of the property. If you have a record of rental payments, you can share it with your landlord to earn their trust.
Longer lease commitment: Offer a longer lease commitment in exchange for a lower rent. This provides stability for the landlord, which can be a strong negotiating point.
Be respectful, professional, and reasonable: Be prepared to listen to your landlord’s perspective and approach the negotiation respectfully. Having a professional discussion can increase your chances of getting a rebate on rent.Â
Upfront Payment: You can also offer to pay your rent in advance in exchange for a lower rent.
Ensure that any negotiated terms are documented in the rental agreement. Both parties should sign and date any changes to clarify and avoid future disputes.
Tenants rightsÂ
As per the Rent Control Act of 1948, tenants have some rights you must know. These rights include:
Right to essential services: This includes essential services such as water supply, electricity, parking, and sanitation.
Right to fair rent: The rent is decided based on the market rates and the property’s value. Any hike in the rent should be as per the rent agreement. Usually, a 10% increase is observed year-on-year.Â
Cannot be evicted unfairly: Your landlord can not evict you unreasonably. A tenant can not be evicted from the property without a valid reason or notice. Eviction can happen due to non-payment of rent for two consecutive months, using the property for illegal purposes, subletting the apartment, or the owner wanting to use the property for personal reasons.
Right to legal documentation: All agreements related to the terms and conditions of a rental home should be legal. A tenant can ask for a legal rental agreement or lease. This agreement mentions the terms discussed between the landlord and the tenant, the rent amount discussed, payment frequency, tenant responsibilities, etc.
Right to security deposit: According to law, the security deposit has to be returned to the tenant before they vacate the property. A tenant also needs to give a three-month notice per the agreement between both parties.
How to build a good relationship with landlords
The tenants must maintain a good relationship with their landlord. To help foster a good relationship to ensure a more harmonious tenancy, here are our top tips for building and reinforcing that trust.
Pay your rent on time: You should be paying your rent each month on the due date, on the whole, and on time. A landlord or property owner expects your rent to be paid in full and on time each month when they sign a lease with you. They rely on your rent to pay their bills because they also have mortgages, utilities, and other expenses related to maintaining the property.
Take care of the property: If you treat the property like you own it your landlords will be grateful. Submit maintenance requests and let them know when something needs repairs or replacement.
Follow the rules: To ensure that all tenants’ expectations are fulfilled, go over all of the building regulations outlined in your lease.
Honesty is the key: Act honourably when interacting with a landlord. Information that is lied about or withheld makes things more complicated. Since errors and accidents occur, being truthful will not only help your reputation but also speed up and improve problem-solving efficiency.
Follow the rent agreement: A lease agreement, which specifies the rent amount, security deposit, and other important terms that the tenant must follow for the duration of the rental, is included with every rental agreement. The leasing agreement is a legally binding contract, thus you should always abide by it. Breaking the terms of your lease could lead to legal problems with your landlord and damage your relationship with them.
Housing.com POV
Moving into a rented apartment is a tough decision that involves careful consideration. Choosing to rent a new apartment can be because of financial or personal reasons. However, it is important to note that a rental property comes with its advantages. The money you save on mortgages, taxes, property maintenance, etc., can be used for future savings and investments. Further, you skip a lot of responsibilities that come with home ownership. It is also crucial for the tenants to do their research before moving into a new apartment, as it can seriously affect their living environment and lifestyle.
FAQs
What is the best time to start looking for a rental apartment?
Start your search at least 2-3 months before your intended move-in date to avoid last-minute stress and to find the best options.
How can I determine if renting is the right choice for me?
Assess your financial stability, lifestyle needs, and long-term goals. Renting offers flexibility and lower financial commitment compared to buying.
What are the key factors to consider when choosing a rental property?
Consider location, budget, safety, amenities, and the property’s condition. Ensure it meets your personal and professional needs.
What should I check before signing a rental agreement?
Thoroughly review the lease terms, rent increase clauses, and maintenance responsibilities. Ensure all terms are clear and acceptable.
How can I negotiate the rent with my landlord?
Research market rates, highlight your reliability as a tenant, offer a longer lease, and be respectful and professional during negotiations.
What documents are typically required to rent an apartment in India?
Common documents include identity proof, address proof, proof of employment, photographs, and references from previous landlords.
What are my rights as a tenant under Indian law?
Tenants have rights to essential services, fair rent, protection from unfair eviction, and a legal rental agreement.
How can I ensure the rental property is in good condition before moving in?
Inspect the property for damages, check the functionality of utilities, and ensure cleanliness before finalizing the rental.
| Got any questions or point of view on our article? We would love to hear from you. Write to our Editor-in-Chief Jhumur Ghosh at jhumur.ghosh1@housing.com |
