Renting a Commercial Property? Keep These Things in Mind
Commercial property market in India is growing fast, as the sector witnesses more and more investment each year. If you own a commercial property and are all set to rent it out, here are few things you need to know:
- Long-term lease agreements are preferred by tenants. Renewing the agreements every now and then causes inconvenience to both the parties.
- A notice period must be agreed up on by both parties and included in the lease agreement.
- The agreement must contain a clause that prohibits subletting.
- Renting out the property to any foreign establishment or foreigner requires a registration of the same at the police commissioner's office. It is a punishable offence, if one rents out to a foreigner without registration.
- Paying Tax is mandatory. The rent is considered as income and the deposit amount is also taxable. If the rent is paid in advance, the gross amount is also taxable.
- The commercial property must be evacuated in case of any developmental or infrastructural activity by the government.
- Normally, office space interiors are done by the tenants with the permission of the owner. Go through the bills the tenant paid. Deduct it from the deposit if they have not paid it.
Last Updated: Fri May 27 2016