Posted on

What are the Difficulties Faced while Obtaining a Commercial Lease?

The commercial real estate sector in India has developed and grown by leaps and bounds, particularly after the pandemic. Just like any other industry, the real estate sector was also impacted by Covid-19. But the sector slowly but surely bounced back. This has led to many more commercial properties that are taken on lease.

What is a Commercial Lease?

A commercial lease is referred to as a contract between two parties in which one party (the landlord) permits another party (the tenant) to exclusively use the plot or building or office space for a specific duration (the term) in exchange for rent or a premium.

If the lease is not properly handled, then it will result in years of disagreements, lawsuits, and extravagant expenses. When you take the viewpoint of the landlord, if the lease is not properly drafted, it can lead to a number of issues.

This is why you need to be careful before taking a commercial property for lease. Here are a couple of areas that you need to pay attention to while obtaining the commercial lease:

Space:

Prior to taking a commercial property for lease, it is vital to find out how much room is included in the rental. It is also important to clarify whether your rental expenditure was computed using rental square footage or available square footage. Since common areas including toilers, hallways, elevators and lobbies are not part of the usable square footage, it is usually less than the rental square footage.

Lease: 

The period of a commercial lease is generally referred to as its ‘term’. It dictates the beginning and end dates of the lease contract, as well as whether or not there are specific renewal options. When it comes to longer lease terms, landlords are generally more flexible in negotiating leases but it is vital to keep the company’s requirements in mind as a longer lease generally means less flexibility in adapting to change as the company grows.

Termination 

If you’re taking a commercial property on lease, you need to be aware of all the procedures that come with terminating a commercial lease early as well as the conditions for ending a lease before the automatic renewal takes place. If the lease does not state a right to cancel, do consider securing a right to end the lease early in exchange for the payment of a fixed sum of liquidated damages to the landlord as a means to get out of the contract.

Security

When you take a commercial property on lease, you need to make sure that it’s obvious what can be subtracted from the security deposit and what can’t. Although laws prevent specific acts involving security deposits, you need to ensure that the commercial lease lays out the expectations and conditions for its return.

In a nutshell, these are some of the factors that you need to pay attention to before taking a commercial property on lease.

Head over to CRE Matrix to get insights on various commercial leases from across different sectors in India.

Posted on

A Comprehensive Guide on Investing in Commercial Real Estate

An individual needs to undertake a massive amount of financial commitment brimming with uncertainty to clear the path for investing in CRE. Therefore, investing in commercial real estate must be made only after carefully considering all the risks involved. Commercial real estate investments are more complex when compared to residential investments because the taxes, regulations and taxes that are generally imposed on commercial real estate property are considerably more rigid when compared to residential properties.

Real Estate investment

What is Commercial Real Estate?

Properties that are generally used for economic or business activities are generally referred to as ‘commercial real estate’. CRE is extremely diverse and extensive, comprising everything from a single store to spacious multi-level shopping malls.

Hotels, hospitals, shopping centres, dining establishments, and office buildings are all examples that would come under commercial real estate.

To learn more about commercial real estate, you have to consider the following points:

  • Investors can make use of REITs (Public Traded Real Estate Investments Trusts) as a means to make indirect investments in commercial properties
  • Commercial property investment requires a bigger financial outlay as compared to purchasing a house. There is a stronger potential for gain as well as a bigger potential for loss in this industry.
  • Prospective rental income and capital appreciation are lucrative features of investing in commercial real estate.

As the name suggests, commercial real estate is the kind of property that is put to economic use.

How to Manage a Commercial Property?

Commercial real estate with tenants needs ongoing management on behalf of the property owner’s part. Thereby, a commercial property management firm can prove to be beneficial for property owners who require help with acquisition and retention, lease & financial administration, and marketing and upkeep planning. Managing office buildings, industrial complexes, and retail properties is a challenging balancing act that involves an abundance of information, transactional details, and results, thereby making the skillset of a commercial real estate management business priceless.

How to Make Money with Commercial Investment?

One way to guard your portfolio from the ups and downs of the stock market is to buy commercial real estate. By investing in commercial real estate, you can profit from the sale of their properties and the rents they gather from tenants.

Commercial buildings, like stores, have bigger returns on investment. Thereby, investors may wish to explore buying them (ROI). Ownership of the shop also lets the investor establish their own business, if not instantly, then at some point in the future.

Advantages of Investing in Commercial Real Estate

Here are a couple of advantages to investing in commercial real estate:

Security: Income generated from investing in commercial real estate is generally rather high. Relatively, residential rental yields are only approximately 1-2% of the property value of roughly about a third of the income CRE properties offer (9-12%).

Uniformity: Having a foolproof business plan increases the chances that CRE renters will pay on time.

Beneficial for Longer Tenure Commitments: Leasing a commercial property generally has a longer term, usually from one to two decades. Those who are investing in commercial real estate may rest assured that their income will be dependable and consistent thanks to it.

Relative Cost of Purchase: As opposed to residential residences, the long-term returns when investing in commercial real estate are far bigger. Additionally, investing in pricey real estate via financial ownership or REITs (Real Estate Investment Trusts) can yield strong returns on modest outlays of capital.

In a nutshell, investing in commercial real estate can prove to be hugely beneficial in India. If you wish to see additional insights on real estate and where to invest, then head over to CRE Matrix.

Posted on

5 Mistakes to Avoid when Signing a Commercial Lease

Covid-19 disrupted many businesses across the country. But slowly but surely they have bounced back. The real estate sector in India is no different, particularly the commercial real estate industry. Nowadays, more and more businesses are seeking commercial property to lease. But there are some mistakes that companies need to avoid before they sign on to the dotted line.

Signing a Commercial Lease

Let’s take a look at some of the errors firms can avert before they sign a commercial lease:

Location:

Every business requires something from its location. For a few, it’s access to the highway. A couple of others would require public transport. Some depend on passing foot traffic while a few would opt for an exclusive customer base. Whatever you’re necessities are the location needs to back them up. Even the most preferred lease can’t compensate for a location n that simply does not have what your business would require to succeed. This is one of the most important mistakes to avoid before renting a commercial property. 

Misunderstanding the Physical Space 

With the rising popularity of flextime, remote as well and hybrid-workspace setups, it’s not always easy to understand how much space your business would need. To make things even more challenging, the breakdown of commercial rental spaces is not always consistent either. This is one of the errors to avert before signing a commercial lease. 

Not Considering All the Expenses

Usually, rent and fit-outs are typically the main expenditures, commercial tenants may consider, but they are not the only property-related expenses. Before leasing a commercial property, you need to check whether your business will be accountable for things such as rates and utilities or repairs and maintenance, or if those fall under the duties of the landlord. Moreover, you need to ensure that any rental escalation clauses in the leases are affordable and market-related. A good deal does not ensure a great deal in the future. 

Undervaluing the Significance of Flexibility 

It is vital to be as flexible as possible with your commercial lease. Shorter lease terms are generally less risky, thereby providing you an earlier out if your circumstances no longer remain the same. If you do choose a longer lease term, usually available, at a more preferred rate, ensure that there is a fair breakaway clause with a more realistic termination process and no unreasonable cancellation penalties. 

Not Negotiating 

A commercial lease is not a standard document. This usually means that anything is usually up for negotiation. Commercial landlords and their representatives are real estate professionals who are aware of how to handle negotiations to achieve the results they want. Tenants are in a powerful position and are obtaining the deals they want when they use the correct strategy, especially when they are backed by skilled commercial property professionals. 

In a nutshell, the above-mentioned mistakes need to be avoided before signing a commercial lease. 

Head over to CRE Matrix to get real estate insights on any commercial property in India. 

Posted on

What are the Top 10 Cities in India for Property Investment?

Investing in real estate is one of the most important financial commitments you can make, and if you do it correctly, it can alter you entire life. Real estate investment in India can have its benefits as well as downfalls. Making the right choice can enable you to achieve your goals, while making the wrong choice make your finances as well as other issues worse. This is why, you need to be informed when you decide to pick the correct option and amplify the rewards of your investment.

Property Investment in India

It’s difficult to pin point which of the top 20 cities in India are good for real estate investment, as it can depend on numerous factors including current market conditions, infrastructure development, and government policies. Parameters that are taken into consideration when deciding the top cities for real estate investment in India comprise of include the strength of the local economy, population growth, and the steadiness of the real estate market, among many others.

Moreover, factors relating to proximity to amenities and transportation, local zoning laws as well as the availability of financing can also play a significant role in deciding whether a particular city is a good place to invest in property. However, a couple of the cities that is typically worthy options for real estate investment in India are:

Mumbai: Dubbed as the financial capital of India, Mumbai has a powerful economy and a flourishing real estate market.

Delhi: As the capital city of India, it has a large population and a developing economy, thereby making it a famous destination for real estate investment in India.

Bengaluru: It is the IT capital of India. Bengaluru has a huge amount of job opportunities and a large population, thereby making it a great destination for real estate investment in India.

Pune: Renowned for its pleasant climate and proximity to the IT hub of Hinjewadi, Pune has emerged as a lucrative destination for property investment in the last couple of years.

Kolkata: It is the commercial as well as cultural capital of Eastern India. Kolkata is an incredible place if you’re looking for properties at budget-friendly rates.

Hyderabad: Renowned for its IT and biotechnology industries, Hyderabad has a developing economy and a huge number of job opportunities, thereby making it a great place for real estate investment in India.

Chennai: Known as a major industrial and cultural center, Chennai has a fast-growing economy and abundant job opportunities. This is why it would make for a good destination for real estate investment.

Ahmedabad: It is the largest city of Gujarat and is known for its abundant job opportunities. This makes it an excellent place for property investment.

Surat: Famed for its textile industries, Surat has a strong growing economy and a plethora of job opportunities. This makes it an incredible destination for real estate investment in India.

Jaipur: The pink city is known for its strong economy and a large number of job opportunities, particularly in the tourism sector, thanks to its heritage. This makes it a great destination for investment in property.

In a nutshell, these are top 10 cities that are excellent for real estate investment in India. If you wish to get real estate insights on a pan-India basis, then head over to CRE Matrix, a leading real estate data analytics company in India.

Posted on

Commercial Leasing Due Diligence Guide: How to Acquire the Best Deal?

When it comes to commercial real estate in India, the process of comprehending the property, the terms of the lease, as well as the way your tenancy will work, is referred to as due diligence. It needs you to do your homework as well as pay attention to the physical, financial as well as legal aspects of the lease. 

If you don’t perform due diligence before leasing a property, business owners end up signing a lease that disrupts their business operations. For example, a few landlords are dishonest and showcase no fair dealings when leasing a property. The majority of landlords lease out properties that are in the process of foreclosure, and a few have bad relationships with their present tenants. Due diligence aids potential commercial real estate tenants to avoid needless conflicts and challenges when they shift to their new office space. 

Additionally, due diligence aids tenants to know as much about the property they wish to lease as the landlord. This assists them to be a beneficial point when negotiating with the property owner. Moreover, while performing due diligence, business owners can find data they can utilize while negotiating reasonable deals. 

Commercial Leasing Due Diligence Tips 

Be on the Lookout for Hidden Expenses 

Sometimes, a commercial lease will make tenants pay for the maintenance expenses. Thereby, it is important that you know all the essentials of the ‘gross lease’, so you’re aware of the expenses that you are accountable for. This will assist you to negotiate and also drop the ones that do not fulfil your business requirements. 

Assess the Terms of the Lease Agreement 

You must be aware of the terms of the commercial lease agreement, particularly regarding default and termination of the lease. The knowledge of the termination clause will assist in negotiating a fair penalty for lease termination before it expires.

Evaluate your Potential Future Development 

To avoid paying for extra spaces that you may never utilize, you need to carefully check your capacity for future development. It’s important to not be extra ambitious, as this can lead to having space that may never get occupied. This is one of the major factors to keep in mind before you sign a commercial lease. 

Research Market Rates 

Acquire an idea of market rents in the region where you are considering and compare them to whatever price the landlord is asking for the rent. It is also vital to point out that just because you have lived in the same place as the new property does not mean the new rental rate will be in the same bracket. 

Thereby, it is important that you thoroughly research the market rates and comprehend what the present trends are. Before signing the commercial lease and making a payment, you must get an idea of the average market rental in the region. This can assist in negotiating a lower price if your landlord is demanding a higher rate. When researching the market rates, you can spend some time interacting with a broker who will provide you with updated details on the market lease rates. 

In a nutshell, above are some of the due diligence tips to keep in mind before you sign a commercial lease for office space. If you wish to have more insights on commercial leasing, then do subscribe to CRE Matrix. 

Posted on

Exploring the Real Estate Market of Mumbai in 2023

Why is the Mumbai real estate market one of India’s most vibrant and dynamic? It has numerous factors pushing its development over the years. With the current economic recovery and increasing demand for residential and commercial properties, trends in Mumbai real estate are estimated to continue their growth trajectory in 2023. 

The COVID-19 pandemic considerably affected Mumbai’s demand for both residential as well as commercial properties. But since the situation has significantly improved, the two sectors are slowly but surely bouncing back, with developers adapting to the altering market conditions. 

With Mumbai’s increasing population, the city’s status as a powerful commercial and financial hub, the government initiatives such as affordable housing and infrastructure development will propel the real estate market in 2023. 

However, according to the latest Mumbai real estate market forecast, challenges, like rising construction expenses, liquidity issues, and regulatory changes, could affect the market. When you comprehend these factors and their possible impact, it will be important for developers, investors, and homebuyers to make knowledgeable decisions in the Mumbai real estate market in 2023. 

Factors Pushing Real Estate Trends in Mumbai 

Let’s take a look at some of the key factors that are propelling the real estate trends in Mumbai in 2023:

Growing Population: Mumbai’s population has slowly risen over the years, which is expected to continue. As a result, there will be an increasing demand for residential apartments in Mumbai. Developers are working on new projects to cater to this increasing demand. 

Status as a Financial Hub: Mumbai is dubbed the financial capital of India. Its powerful status as a commercial and financial hub will play a huge role to lure businesses and professionals to the city.This, in turn, will push demand for commercial properties in Mumbai. 

Budget-Friendly Housing Initiatives: The central and state governments have come up with numerous initiatives to promote affordable housing in Mumbai. These initiatives comprise offering subsidies and incentives to developers and decreasing the expenses of land. This will make it easier for developers to construct housing projects and benefit low and middle-income families. This is one of the real estate trends observed in Mumbai. 

Infrastructure Development: One of the real estate trends in Mumbai is infrastructure development.The MMRDA has been working on numerous infrastructure projects to enhance the city’s connectivity. These projects comprise the construction of new highways, metro lines, and other transport links. Enhanced connectivity will make it better for people to travel to work and open up new places for development. 

Growth of Businesses: The corporate arena has been developing quickly in Mumbai with numerous major companies establishing offices in the maximum city. This has resulted in an increasing demand for commercial real estate, especially in places such as Bandra and Andheri. 

Foreign Investment: Mumbai has also drawn foreign investment in the Indian real estate sector. According to the latest real estate market forecast, this investment is estimated to continue in 2023, as the city continues to stay a lucrative destination for investors. 

In a nutshell, the Mumbai real estate market showcased specific trends that will continue in 2023. These above real estate trends will continue to make the city a great location for real estate – be it for commercial or residential properties. 

CRE Matrix is a leading real estate data analytics firm that can offer real estate insights on various projects developing in Mumbai.

Posted on

5 Reasons Why You Should Invest in Commercial Real Estate in Mumbai

Mumbai has been dubbed the ‘City of Dreams’ because millions of migrants migrate to this cosmopolitan metropolis every year. People leave their villages and hometowns to shift to this city and try their luck. Considering the ever-growing population who have shifted for job opportunities, it is not surprising that more and more commercial developments have come up in Mumbai to cater to the increasing demand. 

If you have decided to set up a commercial space in Mumbai, here are a couple of top reasons why it would be beneficial to invest in real estate – commercial sector.

Great Real Estate Market:

Mumbai has a plethora of great upcoming commercial real estate projects that are currently being developed by well-known builders that offer world-class amenities and comforts for job-goers. Apart from that, Mumbai is the financial hub of India, thereby ensuring that real estate prices will continue to be at an all-time high, thus ensuring not only high appreciation value but also excellent returns on investment which benefits the commercial real estate in Mumbai. This is why it is fruitful to invest in real estate in the city.

Seamless Connectivity & Accessibility 

Mumbai has incredible physical and social infrastructure. Mumbai always has something that is coming up – be it the monorail in the suburbs or a new metro line. The city prides itself on having an incredible highway system for those who like to travel by road. Traffic can be managed thanks to the expressways and the famous Bandra-Worli Sea Link decreasing travel time significantly. This is one of the major reasons why more and more developers want to invest in real estate in Mumbai and wish to set up commercial space in the city. 

Great Employment & Business Opportunities 

Mumbai is the financial hub of the country. So, it’s not surprising, that more and more people from all over the country are shifting to this metropolis for job opportunities and to build a life here. It offers abundant job and business opportunities, in terms of employment as the market in the city for any industry is huge. This is why it will prove to be fruitful if you decide to invest in commercial real estate in Mumbai. 

Easy Financing 

If you’re worried about raising capital to invest in real estate in Mumbai, then don’t fret! Banks have come up with schemes to offer construction finance loans to real estate developers and builders. This can help make it easier for you to invest in commercial real estate in Mumbai. 

Cosmopolitan Vibe

Mumbai is a melting pot of different cultures. Since millions of people migrate to the city from all over India, this metropolis is an amalgamation of differing religions, caste, language and culture. And yet, people live in harmony and co-exist beautifully with each other. Given the cosmopolitan vibe exuded by the city, it is hardly surprising that more and more real estate developers wish to invest in commercial real estate in Mumbai.

In a nutshell, these are some of the main reasons why builders want to invest in real estate in the Maximum City and set up commercial space. If you wish to take look at commercial real estate in Mumbai, then head over to CRE Matrix, a leading real estate data analytics firm in India, to acquire more details and information. 

Posted on

4 Real Estate Trends That Will Emerge Popular in 2023

The real estate market in India has slowly but surely bounced back in a major way after the pandemic. The year 2022 proved to be a fantastic year for the real estate market in the country. The nation witnessed significant new launches and home sales that did a considerable performance. 

The real estate market is considered to be immune to the vitality of the market. They are believed to have stayed true to the expectations of real estate investors despite the highs and the lows in the last couple of years. However, positive expectations and a surge in the momentum of development have showcased the market’s ability to stay put and will continue to perform in 2023 and the following years as well. 

Let’s take a look at the real estate trends that are emerging in 2023:

Shop-Cum-Offices in Commercial Real Estate Sector

One of the emerging real estate trends this year is shop-cum-offices. Also referred to as SCO, it is a commercial real estate class that has witnessed huge development in the last couple of years. When it comes to locations, Gurugram is renowned for being the most popular and lucrative destination for shop-cum-offices in the NCR. SCO plots are available for development as well as investment in numerous areas of Gurugram. Due to this, a new era of commercial SCO plots has come up. Fortunately, SCO markets have witnessed massive development and the early investors’ capital has increased numerous times well. 

House Hunting is Now Digital 

When it comes to real estate trends, housing hunting going digital is one of them. While digital platforms have existed for a long time, the requirement for them has increased multifold, especially during and after the pandemic. For some time, many people have made their home bookings while using a digital platform. Moreover, other factors included in the home-buying process are a home tour, brokerage amount, rent amount, lease agreement, deposit amount, and so forth, have gone digital as well. Moreover, home loans can now be made online too. This can be the basis for buying and selling real estate projects in 2023. 

Sellers’ Market 

The upcoming housing market in 2023 will be observed as a sellers’ market. It is expected that the rates of the housing market will increase for some time owing to the increasing demand for homes combined with limited supply. It is said that Generation Y will be initiating real estate investments for the first time this year. Accordingly, the housing demand for residential and commercial spaces will witness a surge as well. When it comes to the future of the real estate market in India, it will be signified by a rise in demand and a limited supply, thereby creating a seller’s market.

Tier-II Cities Becoming Residential Markets

A rise in the proportion of investments will be shifting to tier-II and tier-III cities in 2023 are one of the real estate trends observed. Specific government programmes including AMRUT and Smart Cities Mission have aided these cities and turned them into amazing residential hubs. Additionally, with a rise in job opportunities and economic development, these cities are more likely to have a more solid residential population. Moreover, numerous tier-II and tier-III cities are either home to a few Indian as well as international MNCs or are well-connected to cosmopolitan cities of India. This, in turn, will result in residents shifting to tier-II and tier-III cities and travelling for work daily. 

In a nutshell, above mentioned are some of the major real estate trends that are emerging in 2023. If you wish to know more real estate insights, then head over to CRE Matrix, a leading real estate data analytics firm in India that offers authentic information on the real estate market in India.

Posted on

5 Ways in Which Data Analytics is Contributing to Real Estate Growth in India

Businesses across various industries in India are leveraging big data nowadays. Thanks to data analysis, businesses enjoy streamlined resources management, a rise in operational efficiencies, big development opportunities, accelerated and smart decision-making as well as improved product development among other benefits.

When it comes to the real estate sector, it is no different. More and more companies, investors, sellers as well as buyers are taking to data in a major way to create algorithm models and predictive analytics to eliminate the guesswork. As a result, they are coming up with more accurate predictions. Furthermore, these estimates provide numerous advantages to the stakeholders.

Here are 5 ways, data analytics is contributing to real estate growth in India:

Digitizing & Automating Real Estate Evaluation

Today, the biggest deal-breaker in the real estate sector would be the price. The present rate or the estimated price in the future of the property assists in determining if it will be the correct investment or not. With the help of real estate data analysis, models can be built using ML algorithms to assess the valuation of any property based on historically relevant details such as the age of the property, location and condition. It can deliver an evaluation within a few seconds for overall consideration.

Optimizing the Buyer-Selection Process

Real estate data analytics India can not only assist you to determine the worth of your property, but it also can aid you to seek the right people who are more likely to be interested in a particular property based on their preferences, location, budget and so forth. Data captured by the buyers can be used to recommend properties that cater to their requirements the most. Similarly, real-estate firms can acquire the information of the buyers who are the correct profile for their offerings, so they can invest the optimum amount of time and energy in potential buyers who are the most serious.

Evaluating & Observing Market Trends

Today, to continue a real-estate business, it is necessary to have the correct understanding of every feature that plays a key role in estimating a property’s value. With the increasing factors, it is very significant to keep up to date and understand all the moves your competitors are making. Data Analytics in India becomes very important in assessing and checking the market trends and comprehending the impact of other factors on real-estate expenditures.

Understanding Patterns to Expect Future Development:

Unlike retail, real estate does establish a specific pattern in its development that typically compliments the local trends, economic stability, demographics, government policies, provisions/subsidies around purchasing real estate, interest rates, and so forth. By making use of data analytics, all these together echo the correlation with the price and aid in uncovering the patterns that assist in estimating the future development of real estate.

Increasing Profits & Decreasing Overall Development Expenses:

Real-estate firms invest their money in land acquisition and then development. Data analytics provides visibility into the valuation of the land to make sure they purchase the land at an optimal rate and development cost can also be managed by tracing how much raw material is required to construct any building space by evaluating the historical data to reduce the wastage which leads to an optimized cost of development. Thanks to the help of data analytics, real-estate firms can predict the value of the property and can sell accordingly to ensure augmented returns on every sale.

CRE Matrix is a leading real estate data analytics company in India. They make use of data analytics to help stakeholders across different industries make well-informed business decisions.

For more such exciting analysis and details on real estate, visit CRE Matrix.

Posted on

4 Facts You Need to Know About Security Deposit in India?

When leasing a commercial property, the tenant is required to pay a specific amount of money upfront before moving into the space. But many are not fully aware of the facts connected to it such as how much money has to be paid as a security deposit and what vital elements that need to be included in the security deposit clause of the lease agreement. Once you’re aware of these pointers, you can go ahead and sign the lease. 

What is Security Deposit?

Security deposit in India is a significant amount paid by the tenant to the landlord at the time of moving into the leased property. It is held all through the tenure of the lease and paid back once the lease is over. This money is important for the landlord as the amount is kept aside for unforeseen conditions that may come up during the tenancy. For example, if the tenant does not adhere to the contract and damages the property or does not pay rent, then the landlord can utilize the security deposit for repairs or rental compensation.

Let’s take a look at 4 vital facts about security deposits you need to know before you sign the lease for commercial property:

Security Deposit Amount Varies in India

The security deposit for a lease that is required before moving into a commercial property varies across different states in India. In major cities, the landlord charges a security deposit as per the cost of living, the type of area, and the locality. The higher the property’s value, the higher the lease as well as the security deposit.

The income level in cosmopolitan cities also plays a role in the monthly rental as well as the security deposit. For instance, the security deposit required by landlords is up to 10 months or 1 year’s rent in Bengaluru.

Awareness of Laws Surrounding Refund of Security Deposits 

According to the Model Tenancy Act, it allows the tenant to reduce rent arrears and other repair charges from the security deposit and refunds the remaining deposit when the tenure of the lease ends, and the tenant leaves the premises. So it’s important to be aware of all the laws surrounding security deposit for commercial property before you sign the lease.

Reasons for Losing Security Deposit

In certain cases, you don’t get your security deposit back. Some of the main reasons why a landlord will not return your security deposit are when there are damages that are done to the property when you have leased it. This includes tampered wall paint, broken tiles and floorings or damaged furniture, among many others.

What Happens if the Landlord Does Not Return the Security Deposit?

In such a scenario, the tenants are free to file a civil suit against the landlord, particularly if the security deposit is not refunded within the stipulated duration. Moreover, criminal charges of charges can also be filed against the landlord. Furthermore, a police complaint can be filed if the security deposit refund is denied.

In a nutshell, these are some of the facts about security deposit for commercial space in Mumbai.

CRE Matrix is a leading real estate data analytics company in India that showcases crucial details about security deposits as well as the leasing status of numerous companies across various sectors to stakeholders.

For more such exciting analysis and details on real estate, visit CRE Matrix.