When you`re renting a commercial property in India, it`s important to have a rental agreement in place. This agreement can help protect both the landlord and the tenant by outlining the terms of the rental arrangement. Here are some things to consider when creating a rental agreement for commercial property in India.
1. Rent and Security Deposit:
The rental agreement should clearly mention the monthly rent, the frequency of rent payment and the amount of security deposit. It`s important to include how much notice the tenant must give in case of vacating the property and whether there is any penalty for breaking the lease early.
2. Term of the Lease:
The rental agreement should state the term of the lease, which is how long the tenant will be renting the property. It is usually for a period of 1-5 years, depending on the landlord`s discretion.
3. Maintenance and Repairs:
The agreement should clearly mention who will be responsible for maintenance and repairs of the property. In most cases, it is the landlord`s responsibility to ensure that the property is maintained, but the tenant might be responsible for minor repairs.
4. Permitted Use:
The agreement should specify the permitted use of the commercial property. It should mention if there are any restrictions on using the property for specific purposes. The tenant must abide by the permitted use clause, failing which the landlord has the right to terminate the agreement.
5. Renewal of Lease:
The rental agreement should specify whether the lease can be renewed and under what conditions. It should mention how much notice the tenant must give for renewal of the agreement and whether the rent will be increased.
6. Termination of Lease:
The rental agreement should clearly mention the circumstances under which the lease can be terminated. It should mention the notice period required by both the landlord and the tenant for termination.
In conclusion, a well-drafted rental agreement for commercial property is essential for both the landlord and the tenant. It ensures that both parties are aware of their rights and responsibilities, and that potential issues can be resolved in a timely manner. When drafting a rental agreement, it is recommended to seek legal advice to ensure that the agreement is in compliance with the law.