Commercial Rent Agreement: Legal Contract for Warehouse/Godown Rental in India

A commercial rent agreement serves as a legally binding document between a landlord and tenant, stipulating the terms and conditions under which the tenant is permitted to use the landlord's property for a defined period. Typically, such contracts warrant that the landlord receives a pre-agreed rental payment from the tenant in exchange for the tenancy. While a lease agreement commonly denotes a long-term contract, a rent agreement could cater to both short-term and long-term arrangements.

When a tenant wishes to use the property for commercial purposes, specifically for a warehouse or godown, the agreement is termed as a Warehouse/Godown Rental Agreement.

A Warehouse/Godown Rental Agreement, akin to other leases, is a legally enforceable contract setting out the conditions for renting a commercial space. It enumerates the tenancy duration, the payable rent, and any rules or limitations applicable to the property. It's imperative that both the landlord and the tenant thoroughly comprehend the terms of the agreement before appending their signatures.

Here are some considerations when crafting a Warehouse/Godown Rental Agreement in India

1. Tenancy Duration: The agreement must specify whether it's a month-to-month lease or a fixed-term one.

2. Rent: The rent amount, the payment method, and the due date should be clearly mentioned in the agreement. Any potential rent increment over the tenancy period should also be outlined.

3. Security Deposit: It is common for landlords to require a security deposit at the onset of the tenancy. The agreement should detail the deposit amount and the conditions under which it can be refunded to the tenant.

4. Maintenance and Repairs: The agreement should delineate the obligations of the landlord and the tenant concerning the upkeep and repair of the property.

5. Usage of Property: The agreement should explicitly state that the property is intended for use as a warehouse or godown. Any restrictions concerning the type of goods to be stored should be mentioned.

6. Termination: The agreement should stipulate the circumstances in which either party can terminate the lease, along with the requisite notice period.

Having a written Warehouse/Godown Rental Agreement is paramount to safeguard the rights and interests of both parties. Prior to signing, it is recommended to have a legal professional review the agreement to ensure its fairness and enforceability.

Fill out the form below in a guided format to generate a sample PDF and Word document for the format of a Commercial Rent Agreement.