Overview of Commercial Rental Agreement
A Commercial Rental Agreement is a legally recognized document used to lease business premises—offices, retail, warehouses, restaurants—formalizing landlord and tenant obligations, costs, and usage rights for commercial use.
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When to Use a Commercial Rental Agreement?
● Leasing office space, retail stores, warehouses, factories, restaurants ● Part of larger complexes with shared lobbies, parking, HVAC ● Significant financial commitments requiring clear, comprehensive terms
Key Queries to Address
● Liability for fire or other damages ● Utilities payment responsibility ● Landlord inspection rights and notice period ● Tenant bankruptcy as contract breach ● Dispute resolution: court, arbitration, mediation ● Governing law and jurisdiction ● Eminent domain or government takeover provisions
Essential Elements
● Landlord and Tenant definitions ● Term: Lease duration (months/years) ● Demised Premises: Exact rentable area with layout map ● Real Property: Entire building and common areas ● Base Rent: Fixed monthly or annual amount ● Operating Costs: Pro rata share of CAM, taxes, insurance ● Security Deposit: Refundable sum for damages or defaults ● Permitted Use: Allowed business activities and restrictions ● Renovations: Tenant vs landlord responsibilities for upgrades
Who Should Use It?
Suitable for businesses such as offices, startups, cafes, restaurants, clinics, hotels, guesthouses, warehouses, factories, self‑storage, and mall kiosks.
Advantages
● Strengthens landlord‑tenant relationship with clear expectations ● Legal protection for high‑value commercial properties ● Preserves capital—no large upfront purchase required ● Flexible terms compared to mortgages or loans ● Quick occupancy without lengthy loan approvals ● Financial safeguards against unexpected costs ● Professional clarity fostering mutual respect
1. Mandatory Documents
● Valid government ID (Aadhar, Passport for foreigners)
● Power of Attorney if signing for owner
● Landlord’s property ownership proof (sale deed)
● Tenant’s business registration or incorporation certificate
● Government approvals or licenses required for business
● Two passport‑size photographs
● Stamp paper for lease (value per state)
● MOA & AOA if the tenant is a company
● Shareholder or dealership agreements if applicable
Execution & Registration
● Draft on non‑judicial stamp paper or e‑stamp per state
● Signatures of landlord, tenant, and two witnesses
● Each party retains a signed copy
● Register lease >11 months at sub‑registrar with stamps, fees
● Obtain registration certificate and receipt
DoStartup’s Hassle‑Free Process
● Share your requirements and property details
● Expert legal team drafts first version in 2 days
● Review and suggest edits until you’re satisfied
● We finalize, print, stamp, and register on your behalf
● End‑to‑end support ensures legal compliance and speed