If you`re a landlord looking to lease out your commercial property in India, it`s essential to have a well-crafted lease agreement in place. A sample lease agreement can give you an idea of what to include and help you draft a document that works for both you and your tenant. Read on to learn more about the key components of a lease agreement for commercial property in India.
1. Parties involved
The lease agreement should clearly state who the parties involved are – the landlord and the tenant. Include their full names and contact information, as well as the name and address of the commercial property being leased. It`s also important to mention the purpose of the lease – whether it`s for office space, a retail store, or industrial use.
2. Duration of lease
Next, specify the duration of the lease. This can be for a fixed term, such as six months or a year, or it can be for an indefinite period. If it`s a fixed-term lease, mention the start and end dates. It`s important to state the notice period required to terminate the lease at the end of the term or if either party wants to end the lease early.
3. Rent and security deposit
Clearly state the amount of rent that the tenant has to pay each month. You can also mention any late payment fees or penalties. Specify the mode of payment and the date by which the rent is due. In India, it`s common for landlords to ask for a security deposit from the tenant. Include the amount of the security deposit and the conditions for its return at the end of the lease.
4. Maintenance and repairs
The lease agreement should also mention who is responsible for maintaining and repairing the property during the lease term. While landlords are generally responsible for structural maintenance, tenants may be responsible for minor repairs and upkeep. Specify who is responsible for paying property taxes, utility bills, and other expenses related to the property.
5. Permitted use
The lease agreement should specify what the tenant is allowed to do on the property. For instance, if it`s a retail store, it should mention what kind of merchandise can be sold. If it`s an office space, mention who can use the space and how it can be used. Any restrictions or prohibitions should also be clearly stated.
6. Termination and renewal
Finally, the lease agreement should specify the conditions under which the lease can be terminated or renewed. For instance, if the landlord wants to renew the lease, the agreement should mention the renewal terms and conditions.
In conclusion, a sample lease agreement for commercial property in India should cover all the essential terms and conditions of the lease, including the parties involved, rent and security deposit, maintenance and repairs, permitted use, and termination and renewal. Make sure you consult a lawyer and follow all legal requirements while drafting the lease agreement.