Sharing a flat in Mumbai: how a leave and license agreement works with flatmates

By The JoinMyFlat team · Updated 23 October 2026 · 8 min read

What "leave and license" means

In Maharashtra, renting a home is usually done through a leave and license agreement, not a tenancy agreement. The owner, called the licensor, gives you, the licensee, permission to live in the flat for a fixed period. In return you pay rent. It is a permission to use the home, not a transfer of any right in the property. That is why owners like it, and why you will hear people in Mumbai say "11 month agreement".

If you have been searching for a "rent agreement", it is the same thing in plain language. The paper you actually sign is almost always titled Leave and License Agreement.

Three ways flatmates set this up

One agreement, everyone named. The owner signs with all the flatmates. Everyone is a licensee, the rent and the deposit are written once, and the owner knows who lives there. This is the cleanest option and the one we would pick.
One main person signs, the others share. One flatmate signs with the owner and the rest pay that person. This is common and is where most disputes start. If the owner has not agreed in writing to the others living there, the arrangement may break the agreement itself.
A separate agreement for each room. Some owners do this. It can make the flat look like a paying guest house, and societies often have rules about paying guests. Check with the owner and the society before you agree.

What to check before you sign

Names and ID of everyone who will live there. Each person's name, and a copy of their ID, goes to the owner.
The term, the lock-in and the notice. How many months you are bound for, and how many months of notice you must give to leave.
Rent and the due date. The amount, the day it is due, and how it is paid. Pay by bank transfer so there is a record.
The deposit. The amount, when it is returned after you leave, and what the owner can deduct. Our guide to the security deposit in Mumbai goes through this.
Who pays what. Society maintenance, electricity, water, gas, internet, repairs. Write down which of these are included in the rent.
What happens when a flatmate leaves. Can you bring in a replacement, does the owner have to approve them, and who deals with the deposit?
How many people may live there. If the agreement lists a number of occupants, stay within it.
Stamp duty and registration. Who pays them, and when it will be done.

Registration and stamp duty

In Maharashtra a leave and license agreement is expected to be registered, and stamp duty is paid on it. The duty is calculated from the rent and the deposit, and the fees change from time to time. Do not rely on a number from a blog, including this one. Use the official calculator and booking system on the website of the Inspector General of Registration, Maharashtra, or ask the owner or an agent who does this every week.

An agreement that is not registered may not be accepted as proof if there is a dispute. Ask the owner to register it, and ask who pays the cost before you agree.

Whose responsibility is the rent?

When all flatmates sign one agreement, read the part about responsibility. Many drafts say the licensees are jointly and severally responsible. In plain words, the owner can ask any one of you for the whole rent if the others do not pay. You may be fine with that between close friends. If you are not, say so before you sign and ask the owner or a lawyer how to word it.

Separately from the owner's agreement, write a one-page note between flatmates saying who pays how much of the rent and the deposit, and how bills are split. Our guide on house rules and splitting bills has a simple way to do it.

When a flatmate moves out

Tell the other flatmates and the owner in writing. A message is fine, as long as it is dated.
Agree on a replacement and tell the owner. Check whether the agreement needs their written approval.
Settle the leaving person's share of the deposit between you. The cleanest way is for the new person to pay it to the one who is leaving.
Ask for a short written note, signed by the owner, that the new person is part of the agreement.
If the police are informed of who lives in the flat, make sure the details are updated. See tenant police verification in Mumbai.

Finding a flat where this is easy

It is easier when you find flatmates before you find the flat, because everyone can sign together. If you are still looking, browse flats and the people living in them or read how to find a flatmate safely.

Questions people ask

Is a leave and license agreement the same as a rent agreement?

In everyday speech people use both words for the paper you sign to rent a home. In Maharashtra the document is usually called a leave and license agreement. The owner gives you permission to live in the flat for a set period in return for rent. If you are searching online for a draft, use the words leave and license.

Can two or three flatmates sign one agreement?

Yes, and it is the most common way to do it. All of you are named as licensees, the rent and deposit are written once, and the owner knows exactly who lives in the flat. Ask whether each of you is responsible only for your share or for the whole rent, because many standard drafts make every licensee responsible for all of it.

What if only my friend signed and I just pay them rent?

Then your link is with your friend, not with the owner. You usually have no written right to stay if your friend leaves or the owner objects. Many agreements also ban letting others stay without the owner's written permission. Ask for your name to be added, or get the owner's consent in writing.

Do I need a separate agreement for my room?

One agreement for the whole flat is the usual practice. Separate agreements for each room can make the flat look like a paying guest arrangement, and housing societies often have rules about that. Ask the owner and check your society's rules before you go this way.

How long is a leave and license agreement?

Eleven months is the common term, but a longer one is possible if both sides agree. Look at the lock-in period and the notice period more closely than the term itself, because those decide what it costs you to leave early.

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