Commercial Office Rental Agreement

Leasing a property is the best choice when you can’t afford to buy one or it financially not a wise choice. Any individual, business owner or company wishing to take up a property to use as an office can make use of a commercial office lease. So if you are the owner of a property apt for office use or if you are an individual who wants to lease a property for office use, commercial office lease is what you need.

Office space leases can also be signed between companies when one company requests the use of a part of the other company’s office space for the former’s use. Ideally, the lease should be prepared one or two months before the previous tenant vacates. This would leave room for both parties to update their clauses.

Companies or individuals who wish to occupy a property to set up their office in it can use an office space lease. As long as an individual is 18+ in age, they can lease a property in their name. Proprietors can create agreements in their own name, however, companies or partnership firms must always use their registered business name in the contract.

Companies who want to lease an office space too can make use of this commercial lease. In such cases, the name of the company will be used in place of Tenant.

What Should Be Included In The Lease/ Rental Agreement?

Commercial leases are regulated by the Rent Control Act, so you might as well pay attention to what goes into your contract. Whatever is written is legally binding. Hence you may want to make sure that you don’t miss the following clauses.

• Lease term and options for renewal
• Monthly rent/ lump sum for fixed period, deposit and maintenance charges
• Permission to alter the structure of the building or add structures eg cabins, display units etc
• Right to sublet
• Code compliance
• Conditions for lease termination
• Consequences of breach of contract

Making The Agreement Legally Valid

To make it legally valid

1. Commercial rental agreement need to be prepared
2. Print the document on stamp paper of recommended value. Each state has its own guidance on stamp duty charges. Keep in mind that leases for a period of over a year must be compulsorily registered at the Sub-Registrar’s office.
3. The tenant and landlord must place their initials on all pages and signature on the last page designated for signature.
4. The witnesses must place their signatures at designated places.
5. Tenant will pay for stamp charges and keep the original copy of the agreement. Landlord keeps the duplicate copy. Alternatively, you can buy two sets of stamp papers and both parties can keep one copy.

Most commercial leases do not stick to a standard format. However, like most legal documents, office space leases also require some basic elements to make them legally valid.

The names and addresses of the landlord, tenant and the property intended to be leased out must be clearly spelled in the contract. Any change in the spelling can cause unnecessary headaches.

Term of the lease, lump sum/ rent to be paid to the landlord and its interval, clauses agreed upon between landlord and tenant and other important conditions must be clearly mentioned in the contract. Vague or obsolete clauses leave everyone in a contract vulnerable should a dispute arise.