Rent agreements in Mumbai: the rules
Almost every home in Mumbai is rented on a leave and licence agreement. Here is what the law requires, what is just custom, and what to put in writing.
Leave and licence, not "tenancy"
Under the Maharashtra Rent Control Act, 1999, a leave and licence agreement gives you the right to use the flat for an agreed period. It does not create a tenancy, so the owner can take the home back when the period ends. This is why Mumbai owners use it, and why old "pagdi" style tenancies are no longer created for new rentals.
Registration is compulsory
Section 55 of the Act says every leave and licence agreement must be in writing and registered, whatever its length. The duty is on the owner (licensor). If it is not registered, the law presumes the occupant's version of the terms, and the owner can face a fine or imprisonment.
Why 11 months?
The 11-month term is custom, not law. Owners like it because terms can be reset each year. The agreement can be for any period up to 60 months; longer terms with a lock-in suit families and companies who want stability.
How registration works
- Draft the agreement with names, the flat, period, rent, deposit, lock-in, notice and escalation. Make a draft
- Pay stamp duty and registration fee online through the Maharashtra registration department (IGR). Calculate it
- Online e-registration with Aadhaar-based biometric or OTP signing for the owner, tenant and two witnesses, usually at home or office with an authorised service provider.
- Download the registered copy. Both sides keep it; the society and police verification use it.
What the agreement should say
| Clause | Common in Mumbai |
|---|---|
| Period | 11 months, renewable; up to 60 months allowed |
| Rent (licence fee) | Paid monthly in advance, usually by the 5th–10th |
| Security deposit | 3–6 months' rent, interest-free, refundable on handover |
| Yearly increase | 5–10% on renewal |
| Lock-in | Often 6–11 months for both sides on longer agreements |
| Notice | 1–2 months after the lock-in |
| Maintenance and society charges | Usually the owner; electricity, gas and internet the occupant |
| Repairs | Minor repairs by the occupant, structural and major by the owner |
| Inventory | An annexure listing furniture and appliances, with photos |
Police verification
Mumbai Police require owners to give the details of anyone they rent to, before the occupant moves in. It can be done online through the Maharashtra Police citizen portal or at the local police station, with the agreement, ID and photos of the occupant. Not doing it can lead to action against the owner.
Deposit, tax and society rules
Clauses to read twice
| Clause | What to watch |
|---|---|
| Lock-in | Who is locked in, for how long, and what happens if someone leaves early (usually rent for the remaining lock-in). It should bind both sides. |
| Notice period | Same length for both sides; when it can be given; whether it applies during the lock-in. |
| Deposit refund | Refund on the day of handover, or within a fixed number of days; what can be deducted; interest or penalty if it is late. |
| Escalation | The yearly increase in percent, and that it applies only on renewal. |
| Maintenance and charges | Who pays society maintenance, non-occupancy charges, property tax, and move-in or move-out fees. |
| Repairs | A clear split and a money limit for small repairs. |
| Use and occupants | Residential use only; names of everyone living there; no subletting. |
| Owner's entry | Visits only with notice, except emergencies. |
| Renewal | Whether it is automatic, at what increase, and who pays stamp duty again. |
| Inventory | An annexure of furniture and appliances with their condition and photos. |
How the owner is protected
Damage and the deposit
- Move-in record. Photos or a video of every room, wall and appliance, plus meter readings, signed by both sides. This is the single best way to avoid deposit fights.
- Normal wear is not damage. Faded paint, small nail holes and ageing appliances are normal wear and should not be charged.
- Real damage is. Broken fittings, stains, holes, missing items or unpaid bills can be deducted, at the actual repair cost, with bills shown.
- Joint handover. Walk the flat together on the last day, compare with the move-in record, settle bills, then refund the deposit the same day, or within the days agreed.
- If it is disputed. Talk first, then a lawyer's notice; the registered agreement is the evidence either way.
A hassle-free lease: checklist
- Society rules checked and the society informed before the token.
- Everything paid by bank transfer, with receipts.
- Agreement registered online before move-in, with police verification filed.
- Inventory annexure and move-in photos signed by both sides.
- Maintenance, charges, repairs and the repair limit written down.
- Lock-in, notice and escalation equal and clear for both sides.
- TDS handled if the rent is above ₹50,000 a month, or the owner is an NRI. How TDS works
- Renewal and exit dates in a calendar: our free rent manager reminds you.
Rentu.in, Mumbai rentals since 1995. General information, not legal or tax advice. Rules and fees change; confirm current figures before you sign or pay. Last reviewed October 2026.