10 Months Advance:
Namma Bengaluru was always a dream for me. When I was busy studying Electronics, my brother used to go to Bengaluru and come back with the stories of big malls, trending brands, fashion statements, climate. These stories were always happy and joyful.
Finally I landed at the land of IT gurus. After I made t
oo many circuits and after I learn what is semi-conductor, I was there at the silicon city. Initially I stayed at my uncles house until this “IT training” thing completed. I was all into the City and the bright lights of the city had all evil things hidden in the dark. I completed my training, and was officially ready to go to the office. Officially ready to move to my own rented house.
The hunt of house for rent started. I checked all the websites and informed all my friends about my requirement. My facebook friends liked my Idea of searching a house, some wished me luck.
It took me 3 weeks.. 3 weeks to understand it is difficult to find a house. The owners were scared to rent the house because I was not married..(not being married was a new crime at Bengaluru).. one of them stared at me and then was like “Kitna kama lete ho”?.. later he says “will see, call me tomorrow”.. He is just a bl**dy house owner, who is treating me as a useless kid who is asking for free help.. people around started asking questions as I was roaming around the area clueless. After all this, I quit the hope calling an agent who can fix me up with a owner.
Indeed, he did.The house was spacious and the rent was 6K for 1BHK.. I agreed to all the conditions, planning to shift immediately, but cancelled when I heard the owner talking about the 10 months Advance.. I moved back to my uncles house to save some more money to pay the advance. However I couldn’t save enough money in 1 year. Eventually I moved to Pune.
But in later years, when I stayed at Chennai, Pune, Bombay, Hyderabad the condition was not same there.. no one asked for an advance money of 10 months.
Many speak about many things at Bengaluru.. no one talks about this, why?? Why do we need to pay 10 months advance money? The rent is hiked to 10,000 / 1BHK in many areas. How can you even expect 1,00,000 from a fresher? or a student? or why will anyone pay 1,00,000 or sometimes more than that? If I fix this deposit in the bank, I am paid at least of 6%.
Basically, when I am at Bengaluru, I lose 6% (bank interest), 10K (painting charges), over-priced rent, 10K (agent charges).. approximately 40K every year.. Guys understand that, this issue is created by ourselves..
Reply if you are against this.
30 thoughts on “10 Months Advance.. Welcome to the new Bengaluru”
Hello Sir,
I liked your post and i too had same question in mind. There are multiple factors here for people asking 10 months advance:-
1.People think working in IT industry means person earning lakhs per month but reality is completely different and paying 10 months adavnce is not a big deal.
2.Housed owners use those money for paying their loans or give for loan by end of month there get house rent plus interest amount.
3.At end when tenants vacate the house they dont need to pay whole amount they will deduct painting charges damage charges,etc and they need to give only 60% of amount.
4.House owners no need to worry for another 11 months as they would get fixed income of rent plus interest amount. Because if tenant vacates house before 11 months he needs to 1 month adavnce rent as fine so total loss in advance money would go upto 50%
But paying 10 months is huge burden for anyone I hope people do change in coming days. Sad things is this trend is spreading in other cities like Chennai also.
Sai You are right… Now things are changing.. Some people in Hennur thinks their area is like manhattan and asking for 20-25K rent and no body shows up there. When no one will come and take their house for rent then they will come on earth and face the reality.
Many area doesn’t have basic facility like Water and drainage still they ask for hefty rent, that needs to be stopped.
Welcome to namma Bengaluru. I’ve been wondering the same thing myself. In the NCR, it’s a fixed system of 2+1 months advance. 10 months is unheard of. Not being married is a curse there too, though. Better get married if you want to live in a nice apartment complex.
Thank you. Yes, even I think its overpriced. C’mon who would like to pay 20K for a 2 BHK..? Instead you can pay the same EMI and build a house at your native.
Syed, 20k for a 2 bhk will be either in branded apartment like shobha/prestige or in places like jayanagar where the price of that house will be more than 1 crore. EMI for that will be 80k per month.
Do you know what it costs to own a place in bangalore??
Do you know what rent you pay doesn’t even cover a fraction of EMI one pays to the bank?
Do you know what it costs to repair/ repaint a house after a tenant vacates?
Did you know it’s hard almost impossible to get a contractor to do minor repairs or jobs after a tenant vacates messing up the house??
So how can the owner cover such expenses?? Over and above paying such abnormally high EMI and repair costs what do you think the owner ultimately earns? Typically lot of tenants vacate the house in 11 months prompting the owner to repaint the house. Do you think it comes cheap? If the owner doesn’t have enough advance to cover the damages, do you think it’s easy to recover costs from tenants? And you are counting the interest on the house advance? That’s just an additional sum he is trying to recover to pay his EMI. Remember most people rent houses because their jobs make them move and they have big commitments themselves. There are several uncouth landlords who own multiple houses and who only survive on rentals I am not talking on behalf of them.
If you think you are a student and don’t have money? Look for a place you can afford? Shouldnt statements without knowing the facts? It is what it is. Everyone goes through their share of initial troubles so just live up?
Buy a house and see for yourselves the pitfalls and what it takes to own a house in bangalore. It’s no joke.
Today Everything in bangalore comes at a price? Remember You only get what you pay for?
In my opinion 10 months is just fair.
Unfortunately.. The issues are same everywhere.. Pune, Hyderabad, Delhi, Bombay, Chennai.. But they dont charge 10 months advance.. 🙂 If rental is painful.. dont rent out house.. own it and stay like king.. 🙂
Same words can backfire.. if 10 months advance is painful, don’t go for renting. build a own house 🙂 afterall house owners do not do charity.
Just FYI: there are so many PG and hostel facility available where there is no advance payment.
Exactly. You just nailed it.
Oops.. so Bengaluru house owners say.. stay at footpath, dont dream of a house.. to the poor..
Stan it is really absurd to ask for 10 months advance. I understated there should be some security deposite, yes that can be 2 months or 3 months. You can’t charge your tenanat to pay some amount of your loan EMI.
Anup is right if you feel tenants are not good, don’t give it for rent, you stay and enjoy.
Things are changing now. 10 months monster rule is going to be vanishing soon.
Hi Stan,
Its ridiculous point u made, only some idiot can make it. Please dont tell and misled people that it is difficult to get the contractor for repairing the house in Bangalore. And you talking about repairing the houses, how many tenants you saw or have they break the house or break any thing. They are not careless as you are talking. Most of them they know what cost they payed to study in Bangalore. If you not able to pay its non of the tenants business. This how you people make money. And because of the outside tenants you all house owner enjoying the luxurious life. Dont justify like an idiot for 10 months advance. This is how you all earn your leaving.
You are missing the house owner point of view also. Not all tenants will be as good as you. Few tenants will simply vanish without paying anything if there is no advance paid. Few tenants will damage the tiles/walls/electrical fittings/wardrobe etc. If the tiles are damaged to an extent that it requires replacement, it will cost a bomb, any wood work done on kitchen/bedroom are all in lakhs of rupee. If there is any such damage, no one will be ready to go to court of file a case, tenant can simply say i do not have money to get those things repaired. This way house owner will be bit safe thinking that he has some money which will cover the damages. Tenant will feel that he may not get the advance back, so they will try to handover the house in good condition.
I agree buddy.. but we need to find a solution may be.. for both.. 🙂 you are right from a house owners view..
So solution for tenant is like 0 advance, solution for house owner will be like complete repair cost.
10 month advance will not cover the repair costs if there is considerable damage.
House owners are willing to negotiate the advance. Only the houses which has rent less than 10k ask for strict 10 month advance. If the rent is more than 15k they will not ask 10 months advance. Houses with 20k rent ask 1 – 1.5 lakh.
All cities in India should be given equal importance in terms of growth, this is what happens when some thing are centralized all in one place.
Well said!!
So I read all the comments here and will not go on bashing the house owners(living in rented accommodation myself). But you do realize that as house owner has to keep the deposit as a form of security as well to ensure you keep his place in proper order and don’t suddenly disappear. Basic economics tells me that if the deposit is not steep enough, then the probability of doing damage increases.
Also, house owners are not devils, I did not pay full 10 months deposit, paid some x% of the agreed amount upfront and remaining as was comfortable for me.
And yes, if you have just graduated and are not earning enough, it will be advisable to go for PG or hostel kind of accommodation, plenty of those around Bangalore as well.
Nishant,
When the deposit is not steep enough probability of doing damage increases only in Bangalore?
This is something new in probability theory. So Bangalore does have new probability theory for owners?
In your case, your owner may be good.
10 months rent is no where justifiable… U r talking in if condition… What if there is no damage and everything is good.. Still people take painting charges.
I am from Gurgaon and living is more costly there,
but people don’t ask 10months advance. Sir please go out of Bangalore and I’ll get to know the reality.
Further as u r saying go and stay in PG… I am pretty sure if on 1 fine day u have to pay 10 months advance and u’ll receive only 50 ℅ of it then u realise this pain. Sitting at home and talking if damn easy.
If u want security deposit then fix money with bank as a bond, don’t charge 10 months deposit.
Correct Amit..
They are charging 10 months advance keeping in mind that tenant may damage the house.
Are they returning any interest when everything is good?
To change the house is pretty costly here, you will have to give 1 month rent for their painting even though the house is kept in good terms.
I wish the demand for houses in Bangalore should vanish. Tenants are not here to pay your EMIs.
even after you make your peace with all this drama, after you renew the rental agreement with hiked rent, the landlord sometimes doesn’t think he is under any obligation to do any maintenance work. And you shut up, fearing for the 2-odd lakhs you’ve got stuck as a deposit.
This problem is not only restricted to males. Same problem with girls also. When I came into this city I already had a job. I found a 2bhk and stayed with 3 other girls (unknown). They asked for advance which they gave to the previous girl who left the house before I moved in. The worst part was I payed 11k advance to my roommates and after I left I got only 6.5k. That’s what I was left with. I do not understand why people are so excited to leave there hometown to come and stay in a metro city. To top it up with house expenses, there is auto charges too. From HSR Layout to BTM 2nd Stage, the auto charges 150/- .when asked to go in the meter, the auto driver says no or else pay extra 50/- after what the meter shows. The worst experiences any fresher faces while coming to Bangalore and staying.
agree
Yes, Owners are auto wallahs are the worst part of Bangalore.
For Stan:
Do you know what it costs to own a place in bangalore??
Yes we do know that its expensive to own a place in Bangalore. If you can’t afford to buy pls don’t and impose those on tenants.
Do you know what rent you pay doesn’t even cover a fraction of EMI one pays to the bank?
You should have planned ahead before taking loans
Do you know what it costs to repair/ repaint a house after a tenant vacates?
This is what I completely agree upon. Its won’t be more than 50K if the tenant left the flat/house in worst of the condition. Then why should they pay 10 months advance?? Take the advance and pay interest for them which can get it by depositing in banks..
Did you know it’s hard almost impossible to get a contractor to do minor repairs or jobs after a tenant vacates messing up the house??
Come on You are living in Bangalore. Everything is there at your footstep… just give a google search there are n number of people around to do this.
Here I’m a point not to talk against the owners but there should be something which Owners and Tenants would be happy.
Owners pay interest for whatever the advance they are taking.
Tenants return the house/flat in a condition while they moved in (Painted, fix all the problems created by them) and take advance back.
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For PAVAN:
Do you know what it costs to own a place in bangalore??
Yes we do know that its expensive to own a place in Bangalore. If you can’t afford to buy pls don’t and impose those on tenants.
We can afford to buy. It is you who cant afford to rent. The lease amount will be commensurate of the price of the flat. And profit is the right of any investor just as best value is the right of any consumer. So if you dont think this is the best value, hop on to the next one!
Do you know what rent you pay doesn’t even cover a fraction of EMI one pays to the bank?
You should have planned ahead before taking loans
Yes and the plan included the deposit which we also shelled out as renters ourselves. Not to mention the multiple delays in projects means investors lose significantly and these delays are not predictable and cannot be planned for.
Do you know what it costs to repair/ repaint a house after a tenant vacates?
This is what I completely agree upon. Its won’t be more than 50K if the tenant left the flat/house in worst of the condition. Then why should they pay 10 months advance?? Take the advance and pay interest for them which can get it by depositing in banks..
Problem is for a city like Bangalore which is no ones home town, we cant look for rougue runaway tenants. This is literally “security” deposit.
Did you know it’s hard almost impossible to get a contractor to do minor repairs or jobs after a tenant vacates messing up the house??
Come on You are living in Bangalore. Everything is there at your footstep… just give a google search there are n number of people around to do this.
No things are not at your foot or door step. your comment shows your inexperience in getting repairs done.
Here I’m a point not to talk against the owners but there should be something which Owners and Tenants would be happy.
Owners pay interest for whatever the advance they are taking.
Tenants return the house/flat in a condition while they moved in (Painted, fix all the problems created by them) and take advance back.
I was a tenant 2 years back and now an property owner. One thing that is unfair though is deducting unfair arbitary amounts from deposit. My landlord didnt do it and neither will I.
Basically, when I am at Bengaluru, I lose 6% (bank interest), 10K (painting charges), over-priced rent, 10K (agent charges).. approximately 40K every year..
I agree that we should not pay so much money as deposit. But I could not understand how did you calculate the loss to 40K every year? This scenario is valid only if you are changing your house every year because only then you will end up paying 10K (painting charges) and 10K (agent charges) every year. If you are staying in the same house for a couple of years (say 3 years) then this 20K loss is for 3 years.
If you go to a posh area or an area which is closer to offices, of course rent will be high. Go to a far off area if you don’t want over-priced rent. Isn’t the same valid in Noida, Gurgaon etc.
Yes, you will lose the 6% (bank interest) every year. This should have been stopped.
I agree with you..this is totally unfair to pay 10 months advance.. Why should we pay that much amount.. My previous house owner asked us to vacant his place because his family was coming.. N moreover he deducted painting charges and one month rent. Even though we were leaving the house on his wish.. That how they treat IT people in Bangalore
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