Real Estate Mumbai

CLA is the most commonly used terms by Multinational, Large Corporates and Foreign Companies who have policies to provide the Employees Housing.

CLA “Company Lease Accommodation” is an apartment provided by the Company, the leave and license agreements are signed between the Owner and the Company taking the apartment for their executives to reside in during there term in Mumbai or as required.

The Company Lease is signed only between the Company and the employee is a mere occupant of the apartment. 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.

It was very difficult to even get CLA’s till around 10 – 15 Years back. But the laws and procedures have become much simpler and stronger in favor of the Property Owners.

The owners feel more secured giving the apartment on Company Lease rather than the individual himself, but off late due to the introduction of the Fringe Benefit Tax the Occupants or the Employees taking CLA’s are taxed heavily. The Executives prefer transacting with the property owners directly as there is a tax saving to both the Company and the Employees.

The Property Owners on the other hand are a concerned lot as they have to give there properties to Individuals who may have a Corporate support but since the license agreement is signed with the Individuals the corporations or companies they are employed with have little or no say.

The past years trend has seen that a lot of owners have begun giving the apartments to Individuals as there is no Tax Deduction at Source (TDS) (roughly for Individuals 16%, 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	These apartments are totally unfurnished with basic lights and fans.
Semi Furnished	These contain Lights, Fans, Kitchen Cabinets, Wardrobes in bedrooms and some loose furniture.
Fully Furnished	All the above along with Dining Table, Sofas, Air- Conditioning and other appliances like Washing Machine, Refrigerator etc. The electronics are subjective and may depend on commercial terms and the existing condition of the apartment.