Quick answer: in Mumbai, a flat is usually let out under a leave and licence agreement. In Maharashtra this agreement must be in writing and registered – online or at a Sub-Registrar office – whatever its term. Then share the occupant’s details with Mumbai Police, inform your housing society, and declare the rent in your income tax return. Do these four things and you protect both the flat and yourself.
Last updated: 23 October 2026. A general guide for owners of flats in Mumbai. Not legal or tax advice – rules change, so check with a lawyer and your CA.
Many buyers of luxury homes in Bandra West plan to live in them later, or own a second home in the city. Letting the flat out in between can cover running costs – but a premium home deserves a careful process. This guide explains the paperwork and the practical points, step by step.
Leave and Licence: How Renting Works in Maharashtra
Under a leave and licence agreement, the owner (the licensor) allows the occupant (the licensee) to use the flat for a fixed period and fee. It does not create a tenancy right in the property, which makes it easier for the owner to take the flat back at the end of the term.
The Maharashtra Rent Control Act requires these agreements to be in writing and registered. An unregistered agreement is hard to rely on in a dispute, and unpaid stamp duty can attract penalties.
Step 1: Choose the Right Occupant
- Meet the person or family, and for a company lease, check the company and the employee who will live there.
- Ask for ID, address proof and, for companies, an authorisation letter.
- Ask how long they plan to stay and why they are moving.
- If you use a broker, agree the brokerage in writing before the search starts.
Luxury homes in Bandra are often let to corporate executives, expatriates and families. A company lease can mean more stable payments, but read the company’s own agreement terms carefully.
Step 2: Write a Clear Agreement
Clauses worth including:
| Clause | Why it matters |
|---|---|
| Term and lock-in | How long the licence runs and the minimum period before either side can exit |
| Licence fee and increase | Monthly amount, due date and any increase on renewal |
| Security deposit | Amount, and when and how it is returned |
| Notice period | How much notice each side must give |
| Maintenance and bills | Who pays society maintenance, electricity, gas and internet |
| Furniture and fittings | Attach a list with photos of what is in the flat |
| Repairs | Who handles small repairs and who handles major ones |
| Use | Residential use only; no sub-letting; society rules to be followed |
| Overstay | A daily charge if the occupant does not leave at the end of the term |
Have a lawyer review the draft, especially for a high-value home with expensive fittings.
Step 3: Register the Agreement
- Register online through the Maharashtra IGR e-registration service, or at a Sub-Registrar office.
- Pay stamp duty and the registration fee as applicable.
- Both parties and two witnesses complete identity verification (Aadhaar-based online).
- Download and keep the registered copy – you will need it for police verification and the society.
Many owners use an authorised registration service provider who can complete the process at the occupant’s home.
Step 4: Police Verification
Mumbai Police requires owners to share details of tenants and licensees. You can do this online through the Mumbai Police website or at the local police station. Keep the acknowledgment with your agreement. For foreign nationals, extra registration rules may apply – ask the occupant to confirm theirs.
Step 5: Inform the Housing Society
- Give the society a written intimation with a copy of the registered agreement and the police acknowledgment.
- Check whether the society’s bye-laws ask for a form, a NOC, or a non-occupancy charge.
- Share the occupant’s contact details and vehicle numbers for security and parking.
Step 6: Tax on Rental Income
Rent is taxed as income from house property. In simple terms, you can deduct municipal taxes you pay and a flat standard deduction, and interest on a home loan can reduce the taxable amount within limits. If you own more than one home, the rules on which one is treated as self-occupied matter. Ask your CA before you sign.
If you are an NRI, the occupant usually has to deduct tax at source from the rent – read our NRI guide to buying in Bandra West. Planning to sell another property to fund your purchase? See capital gains and Section 54 basics.
Protecting a Luxury Home
- Do a joint inspection with photos at move-in and move-out.
- Take insurance that covers the building, fittings and contents.
- For sea-facing flats, ask the occupant to keep windows closed during heavy rain and report seepage early – see our sea-facing flats guide.
- Plan regular visits, or appoint a property manager.
- Remember that society maintenance and property tax continue – see our running costs guide.
What About Godrej Bandra Bay?
Godrej Bandra Bay at Bandra Reclamation offers 4 BHK homes only, approx. 2,900–3,500 sq ft* carpet, from ₹29 Cr*. MahaRERA registration is awaited and possession has not been announced, so renting is a long-term question. No rental figures are available for the project. Be careful of any rental income or “assured returns” promised before launch. Our investment guide and the Bandra Reclamation price guide explain how to think about value.
Comparing other projects nearby? Read about Adani Bandra Reclamation, and see another summary on the Godrej Bandra Reclamation property page. For the full picture, read the complete Godrej Bandra Reclamation guide or visit the Godrej Bandra Reclamation project page.
Interested in the project? Send an enquiry and we will share verified details as they are announced.
Frequently Asked Questions
Is a leave and licence agreement the same as a rent agreement?
In Maharashtra, flats are usually let out under a leave and licence agreement. It gives the occupant (the licensee) permission to use the flat for a fixed period, without creating a tenancy interest in the property. In everyday language people still call it a rent agreement.
Is registration of a leave and licence agreement compulsory in Maharashtra?
Yes. The Maharashtra Rent Control Act requires leave and licence agreements to be in writing and registered, whatever the period. Registration can be done online through the Maharashtra IGR e-registration service or at a Sub-Registrar office, and stamp duty must be paid.
Why are most agreements for 11 months?
It is a common practice, not a legal rule. Shorter terms give the owner flexibility to revise the rent or take the flat back. Longer terms are possible too – choose what suits you and write the renewal terms clearly.
Is police verification of the occupant required in Mumbai?
Mumbai Police requires owners to share details of tenants and licensees. This can be done online through the Mumbai Police website or at the local police station. Keep the acknowledgment with your agreement.
Do I need permission from the housing society to rent out my flat?
Inform the society in writing and give it a copy of the registered agreement and the police verification, as its bye-laws usually ask. Whether a separate NOC is needed depends on the society, so check its rules.
Can I rent out a Godrej Bandra Bay flat?
Only after possession, and possession for Godrej Bandra Bay has not been announced yet. Its MahaRERA registration is also awaited. No rental figures are available, so be careful of any rental income promised before launch.
*Prices, sizes and other details are indicative and subject to change. Please verify all details with the developer and on the MahaRERA website before making any decision.
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