Rent

Rent is usually an agreed, fixed, and periodical payment made by a tenant or occupant of a property to the owner or landlord, for the possession and use thereof, especially for residential purposes.

In the Agriculture sector, rent is deemed to be part of the product that is paid to the owner of land for the use of his/her goods and services. 

Renting is also called hiring or letting. Renting is an agreement made with the property owner, where a payment is made to the owner for the temporary use of his/her goods, service, or property. A gross rental lease is the flat rental amount paid by the tenant, while the landlord pays for all property charges regularly incurred for the ownership.

An example of renting is equipment rental.

In India, renting a house is much more convenient and affordable than buying land and constructing a house. Compared to the rest of the cities worldwide, monthly rent is inexpensive enough in India. 

For example:

• a single bedroom apartment in Bengaluru’s city centre is ₹ 12,000, while the same space on the outskirts may be around ₹ 8000.

• The average rent for a 650 sqft apartment across the five cities (barring Mumbai) is ₹14,500, while the same 650 sqft apartment in Mumbai has a rental of ₹41,800. The average rent across the six metro cities is ₹15,600, which accounts for nearly 50% of the average income.

Rent payment for houses leased is still a common feature for many low-middle-income families across India. This situation is gradually changing to house ownership with affordable house loans and increasing surplus incomes.