Read this post if you are looking for a House or Office on rent in Bangalore

I am writing this post to help people who are moving or have recently moved to Bangalore and looking for house/flats on rent or people who are running startups/small companies. My sole intention is to inform people since there is no such article on the web and to help people to make sure they don’t make the same mistakes which I and many other made when they moved in here first.

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I moved to Bangalore in June 2010 so it has been 3.5 years now. It has been a good ride so far with few minor hiccups. Since Bangalore has huge influx of outsiders who are completely new to it, I thought to share my experience and knowledge with people who are looking for house and offices on rent as people learn these things which I am writing after burning their fingers and losing lot of money.

Bangalore has got extremely over crowded and since the city was not built for 8 million people, its infrastructure is collapsing. Those who moved here before 2005 probably got the best deals in terms of place and experience but for those who are moving now or have recently moved, get ready to pay ridiculous amount of money for rental spaces.

The reality about the realty of Bangalore rental spaces –

1. Brokers have inflated the whole market and unfortunately for someone who is new, you will be taken for a nice ride by them. Brokers inflate every flat/house by 20% since they get commission from both sides and often lie about locality, surroundings and the house. Do not trust them and do your own due diligence. Ask local friends about the locality and see if there is power backup as most of the power backups don’t work in old apartment buildings.

2. Broker ask for 1 month as fees which is standard but do try to negotiate it, for example you can pay 18k for a 21k per month flat. Make sure you get this clear the first time.

3. Don’t rush for a place, it will at least take you 6 weeks to find a decent place.

4. The agreement/transactions happens between 2 people – the owner and you with broker as middle man and it will always be you who is taking all the risk. The rest of the parties have figured out the modus operandi and after 11 months when the agreement gets expired, you will come to know how only you lost money. Do not trust the agreement and take it home, read it thoroughly and only then sign it.

5. The 10 month advance is almost a scam and the owners keep this money in fixed deposits and often return you after months (this happened with me once), normaly when new tenant moves. Ideally you should always negotiate the 10 month advance and get it to 6 or 7 months. Most of the owners will do it, if he is not, then some times walking about is the best option.

6. Owner deduct one months advance in the name of repair (the cost of the repair is often just few thousand), this is another way to mint money. Get this specifically in the agreement that the expenses will be shared by both of you or better just deduct a fixed amount from advance. Make sure you get this in agreement.

7. Koramangala is overpriced and over crowded, explore other options. I have lived there for 1 year so telling this from personal experience. There are of course people who work in office and need just a place to sleep and party, for them it works out well but honestly, for my liking the place is too noisy and cramped up.

8. Koramangala and Indra Nagar are two “posh” areas, they are crowded because of north Indian food joints and if you are a first timer, you probably want to stay at these places too but look for places near to them too like BTM layout, HSR etc (for Koramangala), you can find places 30% cheaper.

9. If you are first timer, always find a partner to give you local knowledge. This will also help you to cut down the expenses and avoid overpaying for bad areas. You can find flatmates at rentals section of sulekha.com.

If you are looking for office space

1. If you are a startup or a small business, do not look for office space but look for nice flat or a nice house, they will be much cheaper as IT office space is very costly.

2. Bangalore has 4-5 places where office space is given on terminals/seats. You can explore that option (search in Google) though personally I feels you should avoid it. Paying 3.5k for small seat looks to be too costly to me with not much freedom but if it works out for you, go ahead.

3. Most of the startups are based out of Koramangala and Indra Nagar, it happened because the earlier once (2004 to 2010) started from here so the rest just followed them. If you are a bootstrapper you probably want to avoid these places. If you need help, try to read older threads in OCC (open coffee club) and headstart google groups mailing list and see where other offices are located, try to talk to them and see if they can help you with local knowledge. You can also post in comments here and I will try to help you too.

I will update this post as I remember more points but this looks to be good enough, most likely you will find this post through social media and Google search so if you can add to what I have listed and can share useful info, please do it in comments since we need to make sure the entropy of the universe increases.

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  • Bhavesh Furia

    Very helpful article

  • Bardhan Sumi

    Plz add more info

  • Anoop

    If you are paying brokerage, make sure to negotiate it with the broker before you finalize the house. Just tell him you cannot pay more than 15 days rent, i have done this before on 2 occasions where i paid him 6k instead of 12k(one month rent). Since there is lot of competition among brokers there is a high chance that he’ll agree to it.

  • Mangat Rai

    Damn! I was planning to move in with my wife in Koremangla :(

  • Karan

    What are the benchmark rental rates in Koramangla area?

  • http://gaikwad.in Pushkar Gaikwad

    @disqus_3xcsKW6p9H:disqus , It depends, check sulekha/olx to get better ideas. 2BHK normally goes from 18k to 25k

  • Sankalp Sharma

    A real worthy article thank you, the investment is really worthy, you also have other good Villa Projects In Bangalore

  • Jim

    From what I’ve read, Bangalore is the only city in India that does the 10 month deposit. Is it possible to negotiate that down to 4-5 months? Seem incredibly shady that it would be even that much.

    Also, I was looking at places around Dollars Colony – is that area nice? Do you know anything about it? I read that Pebble Bay is nice. Thoughts?

    Thank you!

  • rushi

    thanks pushkar.. very helpful…tell you what the broker community has scrwed up the real estate scenario every where …they are the main reason for the increase in the rental…

  • rijoy

    thanks man….
    it was helpful indeed

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  • Sahil Kharb

    Can you suggest something like for Vijay Nagar?

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    Fortune Props have much several experiences in business supporting to find the right commercial office space in Bangalore…

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  • Anantha Ranganathan

    Thanks a ton for this very informative post. Helped a lot.

  • tarunnagpal

    Thanks for sharing such informative post. I used rentmantra’s service.They provide great services.Recently I found some broker free websites which are providing House for rent in noida without brokerage.

  • http://www.bangalorefurnishedoffice.com bfo

    thanks for publishing this post

  • heler

    Nice information i will add some more information about the luxury flats

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  • Sudheer Kumar

    You have one more option, NESTAWAY this company is providing houses for families and bachelors too, no brokerage, no false promises and no cheating, all the deposit is refundable apart from 999/- only two months rent is taken as advance. Try it you wl love it, they are providing cleaning for free few times a month, for people with less knowledge about Bangalore, this will surely be the best option. Plz use this code if you are booking a stay through NESTAWAY, the code is SUDHE2702.
    Thank you.