Short-term Rental or Long-term Rental in Bangalore

Bangalore as a city has come a long way from being known as pensioners paradise to Silicon Valley of India. In the early nineties when I was growing up- our population was below 2.5 million. Less traffic, lots of space, huge circles, large gardens and many large water bodies. It was a sleepy town with a few large public service units in the outskirts of the city.

With the IT Boom Post 2000 everything changed- there was a massive influx of people from all parts of the country. Large tech parks, skyscrapers, massive traffic jams and very less public spaces. It is now home to some of the largest IT consulting firms in the world and is now the hub for many Global Organisations. Like any other City- it has its own challenges. One of those is finding a place to live. If you are looking for a space to rent- typical monthly rents vary between 15,000 to 35,000 for a decent 2bhk home that’s semi furnished. Of course some localities like Koramangala and Indiranagar are super expensive.

You are 2 options to rent: Long-rental and Short-term rental.

Long-term Rental:

You rent a place for minimum 10+ months with a fixed rent/month and a security deposit that’s refundable. The place is semi-furnished, meaning you just get a basic modular kitchen, wardrobes and maybe a TV unit in the living if you are lucky. You will need to furnish everything else on your own. Right from buying hob for the kitchen to a shoe rack.

What makes long term rentals difficult is an upfront security deposit you need to pay. Typically its 10 months of rent in advance. So, if your rent is 20,000/month- your security deposit is 2 lakhs. Higher the rent, higher the security deposit. This makes it very difficult for many to rent long-term. And then the cost to furnish the entire place including furniture and other electronics you would need.

Short-term Rental:

The other option that’s evolved over the last few years is short-term rental units. These units are fully furnished with a fully equipped kitchen and they also come with no Security deposit. You don’t have to buy anything. Just walk-in with your bags and checkin like you would in any Hotel. Most provide a high speed internet and electricity bills are included in the monthly rent. However, the rent is generally 2 times the regular semi furnished home. It’s still a good option for people that are visiting for short term. I would say anyone staying for a year or under. Short-term rental is the best option and works out economical.

Long-term rental has its own benefits but for those who plan stay for over a year and above.