Definitions or Difference of Apartment/Flat, Independent/ Sharing Paying Guest Accommodation (PG), Flat Share, Short term rental as per Mumbai Real Estate Terminology / Jargon

Friday, December 28, 2012 ·

In every country, sometimes the same word is interpreted differently and real estate sector is not spared either. In UK and India “Out House” means room behind the main building but in same compound generally used by servants of occupants of that building and the same word in US means wash-room behind building.
We here at are this time trying to define few key words used in real estate sector across the world and has bit of a different meaning in Mumbai’s real estate sector.

Apartment / Flat: - In Mumbai, the word apartment and flat are interchanged quite comfortably. It is better to ask area of the place in square feet or square meter and then decide as per your understanding whether that is an apartment or flat. By the way, lower rank employees like servants, watchmen and chauffeurs use the word “Room” to indicate an apartment or flat.  

Paying Guest Accommodation: - It is some sort of Bed & Breakfast in UK, but not flat share at all. There is no thumb rule in paying guest accommodation; every owner has his or her own set of rules. In general Paying Guest Accommodation is accommodation where owner has 2 or more than 2 rooms in his or her apartment and they rent out one of the rooms to Paying Guest. These rooms are always furnished with bed, wardrobe, chair and writing table, fan and private bathroom. Now-a-day’s you get lots of rooms with air conditioner and TV also depending on one’s requirement and budget, but those days of Paying Guest where one use to get meals also are over.
There are two types of Paying Guest Accommodation in Mumbai that is where most people get confused. One is Independent Paying Guest Accommodation and another is Sharing Paying Guest Accommodation. In independent paying guest accommodation one individual gets one room to use with private washroom and in sharing accommodation one has to share the room with one or more than one person.

Pro and Cons of Paying Guest Accommodation:-

Paying Guest Accommodation has its own benefits but that comes with few constrains also.

Pros: -
Easy to Start:-It is like what a business center is for commercial purpose- you can start from day one. One gets 1 room with private washroom and is fully furnished with Bed, Wardrobe, Chair & Writing table, Fan, Air Conditioner, TV and Fridge facility. All charges like electricity, water, room cleaning is included in the rent. Few owners provide breakfast also. For clothes washing owner’s servant washes clothes and charges are ad hock in the range of Rs. 500 (12$) to Rs.1000 (25$) for a month.

No furnishing Expenses: - All the PG Accommodations are fully furnished, so one doesn’t have to bother to furnish it. You have to move in with your clothes, so this works well for immediate move-in or people who are on short assignment etc.     
Cost: - It is far less expensive than renting out apartment in same locality
Up keep: - In PG you don't have to bother about the up keep of the house, which is taken care by owners, so you don't have to handle servants timing etc.
Deposit: In PG initial deposit amount is very low, just equal to one month’s rent, which is not the case when you rent an apartment. 
Lock in period: - In PG lock in period is very short, you can move out by giving short notice of around 30 days.
Good way to know the city: - In Paying Guest Accommodation you live in some one’s house so you understand the city and its culture well. 

No Visitors: - In PG accommodations visitors are not allowed, so if you like or expect people or relative visit you then PG is not for you.
No HR Benefit: - In PG accommodation you don't get rent receipt and in most of the cases, you have to pay rent in cash so you might get hit on tax.
Limited use of Space: - In PG accommodations, owners don’t give you access to common space like living room, dining room, kitchen etc, so you are confined to your room.
Food: - In most PG accommodations in Mumbai one doesn’t get the meal or access to kitchen. Few owners provide breakfast but meals you have to manage yourself. If you need or want home cooked food than it is not for you, but Mumbai has very good tiffin service delivered by world famous Dabbawalas of Mumbai and free home delivery services by restaurants and grocery stores in the locality.   

Conclusion: - Like we said, there is no thumb rule in PG accommodations even cons mentioned above can be eliminated by bit flexible owners. If one is intern in law firm, summer trainee from MBA institute or Article at Chartered Accountancy Firm or in Mumbai for short term project then Paying Guest is best especially in South of Mumbai, where one doesn’t get flat share options. Some time people bother about the owners interference in their life but in Mumbai most of owner will tell you all dos or not to do things before hand. If you are comfortable with terms then there won’t be any unpleasant surprises later, but still there are certain things to be clarified before moving in and that is where expertise of comes handy while closing the deal.

Flat Share: - As the name suggests, flat share is sharing of flat between two or more than 2 people in every one gets access to common area and facilities like kitchen, dining room, living room, TV, washing machine etc. Flat share is more prominent in western suburbs of Mumbai in locations like Andheri, Malad, Kandivali, Santacruz, Juhu, Vile Parle or locations like New Bombay or Powai, Vakaroli etc. These are pros and cons of flat share.

Pros: - 
Lock in period: - Its gives flexibility in terms of duration of stay unless all parties move in together with understanding of fixed move in and move out time.
No Interference: - Flat share gives you options to have visitors, relatives or party etc. You can work from home if you don’t have to go to work every day or you are a freelancer etc, which is difficult in Paying Guest accommodation.   
Food: - In flat share you have all options of a cook at home or get cook to serve you homemade food.
Living with like-minded people: - In flat share one not only chooses a place to stay but also persons to live with. He/ She can choose like-minded people to live with for a cordial atmosphere.
Cost: - In flat share you share the expenses which has light burden on your pocket and it gives you benefits of economy of scale.
Option of More Options:-You get options to choose bigger place without paying full rent so your choice gets wider.

Cons: -
Rent: - In flat share rent is higher than paying guest accommodation.
Cost: - Flat share can be deadly if one’s flat mate leaves before expiring of agreement because in that case other occupant or occupants of flat has to bear additional burden of rent. It is biggest disadvantage to flat shares. In case one leaves before, that is where expertise of specialist comes in. We at have good experience in bailing out those tenants. not only has the quality to get replacement on time, but matching the reliever / successor's profile with current occupants also. If you don’t get replacement on time then it hits you severely and all your financial planning can go haywire.
Furnishing expenses: - In flat share one has to spend little or lots of money to furnish any place and some time that sort of expenditure is not worth especially when one is in the city for a short term or not sure of duration of stay.
Deposit: - In flat share deposit is higher than paying guest accommodation. For some one who is a student or just starting his carrier it can be difficult.
Issue of Habits or Life Style: - In flat share if people have very different habits or life style than it can become a big issue. Combination of Investment banker and Media man or Student and mature person has a probability of not working; same goes with eating habits or different hygiene standards.
Location Issue: - Flat share is bit difficult in South Mumbai; it is more prominent in locations like Andheri, Bandra, Santacruz, Vile Parle, Khar, Vikroli, New Bombay and Powai. If one is looking for flat share in South Mumbai he or she might have to settle for either paying guest or rent an apartment.

Conclusion: - Flat share is more suitable for people, who want to entertain people at their place and like to have homemade food. For freelancers it is very suitable because you can work from home that is not possible in Paying Guest Accommodation. People who have erratic working and life style flat share is suitable to them. In professions like Media, Advertising, Films, BPO etc it is more prominent.  

Short Term Rental: - Our this post covers short term rental market in Mumbai

Role of RealEstateDealStreet:-
If one takes above mentioned points into consideration he/she will be able to make better decision but still there are certain things that need to be clarified before move-in and that is where expertise of comes handy while closing the deal. not only lets one save brokerage, but most importantly time also. As someone said that by giving time you may make money but by giving money you cannot buy time. We are here for time conscious people. 


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