A Guide to Leasing Commercial Property


Rental of a residential property is relatively easier as compared to leasing commercial properties. It requires larger rooms, higher leases, higher agent fees, and thus contributes to higher overall investment. Although residential agreements are typically negotiated for 11 months, commercial agreements are B2B or B2C and are negotiated for a much longer period of time. Too many uncertainties are involved, and one must exercise due diligence before settling on the right property for them. You need to be aware of the local laws and permits needed for real estate transactions when renting a commercial office space in Hyderabad or any other city in India.

A commercial or office lease agreement is a procedure in which the area is rented for business reasons. This can include the leasing of a shop, an office, an industry and other commercial buildings. Unlike other contracts, the commercial lease agreement does not have the normal or necessary form. The party can use any method as long as the core tenets of the lease agreement are included.

Important Guide To Commercial Leasing

1. Details About The Leased Space

It is essential to know precisely what space you rent, including common areas such as toilets, elevators and passageways. Leases are normally paid at a square foot rate.

2. Renewal Lease Provision

The length of the lease referred to as the term of the lease should be agreed upon by taking into consideration the extension options open to the leaseholder. The purchaser should have the ability to extend the lease.

3. Registration and stamp duty

The registration of the lease agreement includes the application of the stamp duty as well as the registration fee. Stamp duty payable relies on the laws of the state in which the property is located. Normally, stamp duty is payable on the basis of the length of the contract, the value of the rent, the premium and/or some other form of rent and the premium set out in the lease agreement to be performed. It is necessary to determine which party bears the stamp duty and the costs of registration.

4. Security Deposit Law

Commercial and residential real estate leases entail the payment of a fixed sum needed to be deposited with the lender as insurance. The lease agreement should also specifically set out the conditions under which the landlord may make deductions from the security deposit and when the security deposit is returned to the leaseholder.

5. Sublease or Assignment Clause

Another significant factor to be addressed during the negotiation of the lease is to decide if the lease agreement gives the lessee the right to assign or sub-lease the lease to another tenant. Most commercial leases permit assignment or subtracting to group companies or affiliates.

If you are scouting for an office space for lease in Hyderabad, then you should check out properties by Aurobindo Realty. The magnificent office space is landmark in itself and provides all the necessary amenities fit for a commercial project that would help flourish your business. Aurobindo Galaxy Towers are located in Hitech City and they prove to be one of the best investment options too!

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