Leasing Guide

Company Lease

Most Companies in Mumbai prefer to sign a Company Lease which means that the Leave and License agreements are signed by the Company for the use and occupation of the Executive who will be residing in the apartment.

The occupant could be changed if required but a provision for the same has to be made in the Agreements. A popular term for Company Lease Accommodation is “CLA” which is most commonly used by Multinational, Large Corporate and Foreign Companies who have policies to provide there both Expatriate and Indian Employees Housing.

An overview of the Company Lease Accommodation (CLA)

In a CLA, the Company is liable for any default, damage or any breach of the terms and conditions which are usually outlined in the Leave and License Agreements.

A CLA can be signed in for any period of 12 months to 60 Months.

It is more favored with the owners to give their properties in the name of the Company, Corporates etc. as they are more comfortable dealing with a Company than an individual.

A lot of Executives prefer taking apartments on Individual Lease as well, but they work with the same companies as they save on some "Fringe Benefit Taxes."

Over the past few years owners have become comfortable in giving the apartments to Senior Executives Individually as as there is no Tax Deduction at Source (TDS) (Roughly for Individuals 16.99%, NRI’s 30%, Companies around 25%). If the Employee or the Executive comes forward especially with a family and a secured job, property owners do not fret too much, the best way to securitize them is to Take Post Dated Cheques or Advance Rent and a decent deposit to take care of any damages or pending electricity bills etc. A few good references also help the Owners get the required confidence.

There are various types of apartments available in different conditions:

Un Furnished

Semi Furnished

Fully Furnished

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