Model Commercial Rental Agreement
Model Commercial Rental Agreement
Model Commercial Rental Agreement
THIS LEASE (this "Lease") dated this 28th day of April, 2024
BETWEEN:
- AND –
(collectively and individually the "Tenant")
IN CONSIDERATION OF the Landlord leasing certain premises to the Tenant, the Tenant leasing those premises from
the Landlord and the mutual benefits and obligations set forth in this Lease, the receipt and sufficiency of which
consideration is hereby acknowledged, the parties to this Lease (the "Parties") agree as follows:
1. When used in this Lease, the following expressions will have the meanings indicated:
a. "Additional Rent" means all amounts payable by the Tenant under this Lease except Base Rent, whether or
not specifically designated as Additional Rent elsewhere in this Lease;
b. "Building" means all buildings, improvements, equipment, fixtures, property and facilities from time to
time located at ______________________________address_____________________, as from time to
time altered, expanded or reduced by the Landlord in its sole discretion;
i. those portions of the Building areas, buildings, improvements, facilities, utilities, equipment and
installations in or forming part of the Building which from time to time are not designated or
intended by the Landlord to be let to tenants of the Building including, without limitation, exterior
weather walls, roofs, entrances and exits, parking areas, driveways, loading docks and area, storage,
mechanical and electrical rooms, areas above and below leasable premises and not included within
leasable premises, security and alarm equipment, grassed and landscaped areas, retaining walls and
maintenance, cleaning and operating equipment serving the Building; and
ii. those lands, areas, buildings, improvements, facilities, utilities, equipment and installations which
serve or are for the useful benefit of the building, the tenants of the Building or the Landlord and
those having business with them, whether or not located within, adjacent to or near the building and
which are designated from time to time by the Landlord as part of the Common Areas and Facilities;
d. "Leasable Area" means with respect to any rentable premises, the area expressed in square feet of all floor
space including floor space of mezzanines, if any, determined, calculated and certified by the Landlord and
measured from the exterior face of all exterior walls, doors and windows, including walls, doors and windows
separating the rentable premises from enclosed Common Areas and Facilities, if any, and from the centre line
of all interior walls separating the rentable premises from adjoining rentable premises. There will be no
deduction or exclusion for any space occupied by or used for columns, ducts or other structural elements;
f. "Proportionate Share" means a fraction, the numerator of which is the Leasable Area of the Premises and
the denominator of which is the aggregate of the Leasable Area of all rentable premises in the building.
Leased Premises
2. The Landlord agrees to rent to the Tenant the office space municipally
described______________________________________________________________________________________
________
(the "Premises") and comprises a Leasable Area of __xxx____square feet. The Premises are more particularly
described as follows: Individual House, Warehouse and Land. The Premises will be used for only the following
permitted use (the "Permitted Use"):
3. Pets or animals are allowed to be kept in or about the Premises or in any common areas in the building containing
the Premises.
4. Subject to the provisions of this Lease, the Tenant is entitled to the use of 3 parking spaces (the 'Parking') on or
about the Premises. Only properly insured motor vehicles may be parked in the Tenant's space.
Term
5. The term of the Lease commences at 12:00 noon on 28 April 2024 and ends at 12:00 noon on 31 December 2026
(the "Term").
6. Should the Tenant remain in possession of the Premises with the consent of the Landlord after the natural
expiration of this Lease, a new tenancy from month to month will be created between the Landlord and the Tenant
which will be subject to all the terms and conditions of this Lease but will be terminable upon either party giving one
month's notice to the other party.
Rent
7. Subject to the provisions of this Lease, the Tenant will pay a base rent of ₹__amount___, payable per month, for the
Premises (the "Base Rent"), without setoff, abatement or deduction. In addition to the Base Rent, the Tenant will pay
for any fees or taxes arising from the Tenant's business.
8. The Tenant will pay the Base Rent on or before the tenth of each and every month of the Term to the Landlord.
9. The Landlord will pay the cost of any applicable stamp duty.
10. No acceptance by the Landlord of any amount less than the full amount owed will be taken to operate as a waiver
by the Landlord for the full amount or in any way to defeat or affect the rights and remedies of the Landlord to
pursue the full amount.
Operating Costs
11. In addition to the Base Rent, the Tenant is responsible for directly paying to the appropriate suppliers the
following operating costs:
a. property or building taxes and sales or use taxes related to the Building or this Lease;
e. security;
f. window cleaning;
g. all insurance relating to the building as placed by the Landlord from time to time, acting prudently;
j. provision, repair, replacement and maintenance of heating, cooling, ventilation and air conditioning
equipment throughout the building;
k. all amounts paid to employees or third parties relating to work performed in relation to the building
including in the case of employees all usual benefits, including a management fee not to exceed 5% of gross
receipts from the building;
m. provision of a building superintendent and associated personnel employed for the building including a
reasonable rental value for office space used by those persons and related expenses including uniforms;
12. The Tenant will open the whole of the Premises for business to the public fully fixtured, stocked and staffed on
the date of commencement of the Term and throughout the Term, and will continuously occupy and utilize the entire
Premises in the active conduct of its business in a reputable manner on such days and during such hours of business
as may be determined from time to time by the Landlord.
13. The Tenant covenants that the Tenant will carry on and conduct its business from time to time carried on upon
the Premises in such manner as to comply with all statutes, bylaws, rules and regulations of any union, state, local or
other competent authority and will not do anything on or in the Premises in contravention of any of them.
Security Deposit
14. On execution of this Lease, the Tenant will pay the Landlord a security deposit equal to the amount of ₹50,000
(the "Security Deposit") to be held by the Landlord without interest. The Landlord will return the Security Deposit to
the Tenant at the end of this tenancy, less such deductions as provided in this Lease but no deduction will be made
for damage due to reasonable wear and tear.
15. The Tenant may not use the Security Deposit as payment for the Rent.
16. Within 90 days after the termination of this tenancy, the Landlord will deliver or mail the Security Deposit less any
proper deductions or with further demand for payment to: ____________address________________or at such
other place as the Tenant may advise. Any refund may be paid to either of the Tenants.
17. The Landlord covenants that on paying the Rent and performing the covenants contained in this Lease, the
Tenant will peacefully and quietly have, hold, and enjoy the Premises for the agreed term.
Distress
18. If and whenever the Tenant is in default in payment of any money, whether hereby expressly reserved or deemed
as rent, or any part of the rent, the Landlord may, without notice or any form of legal process, enter upon the
Premises and series, remove and sell the Tenant's goods, chattels and equipment from the Premises or series,
remove and sell any goods, chattels and equipment at any place to which the Tenant or any other person may have
removed them, in the same manner as if they had remained and been distrained upon the Premises, all
notwithstanding any rule of law or equity to the contrary, and the Tenant hereby waives and renounces the benefit of
any present or future statute or law limiting or eliminating the Landlord's right of distress.
Overholding
19. If the Tenant continues to occupy the Premises without the written consent of the Landlord after the expiration
or other termination of the Term, then, without any further written agreement, the Tenant will be a month-to-month
tenant at a minimum monthly rental equal to twice the Base Rent and subject always to all of the other provisions of
this Lease insofar as the same are applicable to a month-to-month tenancy and a tenancy from year to year will not
be created by implication of law.
20. If the Landlord re-enters the Premises or terminates this Lease, then:
a. notwithstanding any such termination or the Term thereby becoming forfeited and void, the provisions of
this Lease relating to the consequences of termination will survive;
b. the Landlord may use such reasonable force as it may deem necessary for the purpose of gaining
admittance to and retaking possession of the Premises and the Tenant hereby releases the Landlord from all
actions, proceedings, claims and demands whatsoever for and in respect of any such forcible entry or any
loss or damage in connection therewith or consequential thereupon;
c. the Landlord may expel and remove, forcibly, if necessary, the Tenant, those claiming under the Tenant and
their effects, as allowed by law, without being taken or deemed to be guilty of any manner of trespass;
d. in the event that the Landlord has removed the property of the Tenant, the Landlord may store such
property in a public warehouse or at a place selected by the Landlord, at the expense of the Tenant. If the
Landlord feels that it is not worth storing such property given its value and the cost to store it, then the
Landlord may dispose of such property in its sole discretion and use such funds, if any, towards any
indebtedness of the Tenant to the Landlord. The Landlord will not be responsible to the Tenant for the
disposal of such property other than to provide any balance of the proceeds to the Tenant after paying any
storage costs and any amounts owed by the Tenant to the Landlord;
f. after re-entry, the Landlord may procure the appointment of a receiver to take possession and collect rents
and profits of the business of the Tenant, and, if necessary to collect the rents and profits the receiver may
carry on the business of the Tenant and take possession of the personal property used in the business of the
Tenant, including inventory, trade fixtures, and furnishings, and use them in the business without
compensating the Tenant;
g. after re-entry, the Landlord may terminate the Lease on giving 5 days' written notice of termination to the
Tenant. Without this notice, re-entry of the Premises by the Landlord or its agents will not terminate this
Lease;
i. all rent, Additional Rent and other amounts payable under this Lease up to the time of re-entry or
termination, whichever is later;
ii. reasonable expenses as the Landlord incurs or has incurred in connection with the re-entering,
terminating, reletting, collecting sums due or payable by the Tenant, realizing upon assets seized;
including without limitation, brokerage, fees and expenses and legal fees and disbursements and the
expenses of keeping the Premises in good order, repairing the same and preparing them for reletting;
and
iii. as liquidated damages for the loss of rent and other income of the Landlord expected to be
derived from this Lease during the period which would have constituted the unexpired portion of the
Term had it not been terminated, at the option of the Landlord, either:
2. an amount equal to the Base Rent and estimated Additional Rent for a period of six (6) months.
Renewal of Lease
21. Upon giving written notice no later than 60 days before the expiration of the Term, the Tenant may renew this
Lease for an additional term. All terms of the renewed lease will be the same except for any signing
incentives/inducements and this renewal clause and the amount of the Base Rent. If the Landlord and the Tenant
cannot agree as to the amount of the Base Rent, the amount of the Base Rent will be determined by mediation. The
Base Rent should be determined taking into consideration the market rent of similarly improved premises in the
market, as well as the location, use, age, and size of premises.
23. The Tenant is responsible for the direct payment of the following utilities and other charges in relation to the
Premises: electricity, water, sewer, telephone, internet and cable.
Insurance
24. The Tenant is hereby advised and understands that the personal property of the Tenant is not insured by the
Landlord for either damage or loss, and the Landlord assumes no liability for any such loss. The Tenant is advised
that, if insurance coverage is desired by the Tenant, the Tenant should inquire of Tenant's insurance agent regarding a
Tenant's policy of insurance.
25. The Tenant is responsible for insuring the Premises for liability insurance for the benefit of the Tenant and the
Landlord.
26. The Tenant will provide proof of such insurance to the Landlord upon the issuance or renewal of such insurance.
Abandonment
27. If at any time during the Term, the Tenant abandons the Premises or any part of the Premises, the Landlord may,
at its option, enter the Premises by any means without being liable for any prosecution for such entering, and
without becoming liable to the Tenant for damages or for any payment of any kind whatever, and may, at the
Landlord's discretion, as agent for the Tenant, relet the Premises, or any part of the Premises, for the whole or any
part of the then unexpired Term, and may receive and collect all rent payable by virtue of such reletting, and, at the
Landlord's option, hold the Tenant liable for any difference between the Rent that would have been payable under
this Lease during the balance of the unexpired Term, if this Lease had continued in force, and the net rent for such
period realised by the Landlord by means of the reletting. If the Landlord's right of re-entry is exercised following
abandonment of the premises by the Tenant, then the Landlord may consider any personal property belonging to the
Tenant and left on the Premises to also have been abandoned, in which case the Landlord may dispose of all such
personal property in any manner the Landlord will deem proper and is relieved of all liability for doing so.
Governing Law
28. This Lease will be construed in accordance with, and exclusively governed by, the laws of Tamil Nadu.
Severability
29. If there is a conflict between any provision of this Lease and the applicable legislation of Tamil Nadu (the "Act"),
the Act will prevail and such provisions of the Lease will be amended or deleted as necessary in order to comply with
the Act. Further, any provisions that are required by the Act are incorporated into this Lease.
31. The Tenant will not assign this Lease, or sublet or grant any concession or license to use the Premises or any part
of the Premises. An assignment, subletting, concession, or license, whether by operation of law or otherwise, will be
void and will, at Landlord's option, terminate this Lease.
Bulk Sale
32. No bulk sale of goods and assets of the Tenant may take place without first obtaining the written consent of the
Landlord, which consent will not be unreasonably withheld so long as the Tenant and the purchaser are able to
provide the Landlord with assurances, in a form satisfactory to the Landlord, that the Tenant’s obligations in this
Lease will continue to be performed and respected, in the manner satisfactory to the Landlord, after completion of
the said bulk sale.
33. The Tenant will promptly notify the Landlord of any damage, or of any situation that may significantly interfere
with the normal use of the Premises.
34. Vehicles which the Landlord reasonably considers unsightly, noisy, dangerous, improperly insured, inoperable or
unlicensed are not permitted in the Tenant's parking stall(s), and such vehicles may be towed away at the Tenant's
expense. Parking facilities are provided at the Tenant's own risk. The Tenant is required to park in only the space
allotted to them.
35. The Tenant will not make (or allow to be made) any noise or nuisance which, in the reasonable opinion of the
Landlord, disturbs the comfort or convenience of other tenants.
36. The Tenant will not engage in any illegal trade or activity on or about the Premises.
37. The Landlord and Tenant will comply with standards of health, sanitation, fire, housing and safety as required by
law.
Surrender of Premises
38. At the expiration of the lease term, the Tenant will quit and surrender the Premises in as good a state and
condition as they were at the commencement of this Lease, reasonable use and wear and damages by the elements
excepted.
Hazardous Materials
39. The Tenant will not keep or have on the Premises any article or thing of a dangerous, flammable, or explosive
character that might unreasonably increase the danger of fire on the Premises or that might be considered hazardous
by any responsible insurance company.
40. The Tenant will obey all rules and regulations posted by the Landlord regarding the use and care of the building,
parking lot and other common facilities that are provided for the use of the Tenant in and around the Building on the
Premises.
General Provisions
41. Any waiver by the Landlord of any failure by the Tenant to perform or observe the provisions of this Lease will not
operate as a waiver of the Landlord's rights under this Lease in respect of any subsequent defaults, breaches or non-
performance and will not defeat or affect in any way the Landlord's rights in respect of any subsequent default or
breach.
42. This Lease will extend to and be binding upon and inure to the benefit of the respective heirs, executors,
administrators, successors and assigns, as the case may be, of each party to this Lease. All covenants are to be
construed as conditions of this Lease.
43. All sums payable by the Tenant to the Landlord pursuant to any provision of this Lease will be deemed to be
Additional Rent and will be recoverable by the Landlord as rental arrears.
44. Where there is more than one Tenant executing this Lease, all Tenants are jointly and severally liable for each
other's acts, omissions and liabilities pursuant to this Lease.
46. This Lease will constitute the entire agreement between the Landlord and the Tenant. Any prior understanding or
representation of any kind preceding the date of this Lease will not be binding on either party to this Lease except to
the extent incorporated in this Lease. In particular, no warranties of the Landlord not expressed in this Lease are to
be implied.
IN WITNESS WHEREOF the Parties to this Lease have duly affixed their signatures under hand and seal, or by a duly
authorized officer under seal, on this 28th day of April, 2024.
• (Landlord):
• (Witness):
• (Tenant):
Date:
Place: