By Soniya Gaonkar on Nov 11, 2022 2:54:58 PM
Renting commercial properties is common in many of India’s urban sprawls. It is widespread, especially in the metros, where commercial property rates are beyond the reach of most entrepreneurs. But the sky-high rates don’t dampen the modern Indian’s entrepreneurial spirit, which rents properties and sets examples!
It seems you also are an ambitious Indian entrepreneur looking to rent a commercial property in Pune. If that’s the case, here are six things to consider before renting one.
6 Factors To Consider Before Renting Commercial Properties in Pune
Renting a commercial property in Pune requires reviewing various tactical and strategic factors. Here are six essential ones before you sign the rental agreement. Here, we’ve assumed that you’ve already reviewed, assessed and analyzed the location, considering it is a given and need not be explained to you as an entrepreneur.
1. Have the Building Inspected
If it is a ready-possession property or an old one, make it a point to have the building inspected by experts. After all, you wouldn’t want to experience concerns like leaking pipes, faulty electrical wiring, cracked walls, etc. Thus, ensure you have the building thoroughly inspected and make a decision based on the inspector’s report.
2. Validate the Title Ownership
Although you aren’t buying the property but renting it, you must have all the essential details of the property’s ownership. Accordingly, you must emphasize having access to the title deed to authenticate the rent. Further, you may also want to investigate to confirm if the property doesn’t have any sub-rent or any other type of rent related to it. You must do all of it before you sign the rent agreement to avoid hassles.
3. Sanctioned Plans and Power of Attorney (PoA)
Now, if you are about to rent a property in an under-construction building, you must verify that the commencement certificate and title deed are valid and issued by a competent and relevant government authority.
If it is a built-up property, inspect the occupation certificate. Further, you must check and verify if there’s a PoA involved in the case of indirect rent.
4. IT and Mortgage Verification
In addition to the above, you must verify the income tax background of the landlord and pending disputes or illegal proceedings if you are about to sign a commercial agreement. It will also help you confirm if the office space you are about to rent is categorized under the Income Tax of 1961 as residential or commercial per the Development Control Regulations. Anything dubious or unclear in this regard could later attract TDS.
5. Rent Agreement Validity
Having a lawyer by your side can help you with the intricacies involved in this step. But essentially, a commercial lease agreement must-have details that include the following in addition to various clauses that constitute the entire rent agreement.
- Contract start and termination dates
- The property’s correct address
- The rental amount
- Lock-in period
- Details of all the deposits
- Payment interval
- Rent renewal provisions
- Incremental clauses
- Names of all parties involved with their signatures
- Rent registration (if the rent is for a period of more than one year)
- Landlord and tenant names and details of other parties involved and their signatures.
6. Additional Expenses
While you are drafting the agreement, you must also have a proper understanding of additional expenses like new electricity installations, building maintenance, repairs,
phone lines, etc. A detailed and candid discussion with the landlord or the owners can help you check if the rent has any additional expenses associated with it or not. If there are any, they should have a clear mention in the agreement.
Looking to rent a commercial property in Pune? Kohinoor World Towers (KWT) has many! KWT is a gigantic commercial project in the making in PCMC near Pune. The project is a remarkable addition to Pune and PCMC’s commercial real estate, with impressive features and world-class amenities meant to comfort businesses.
Some of KWT’s incredible features include amazing connectivity, a strategically promising location, various multi-sized office spaces designed to serve firms from multiple business domains, ultra-modern amenities and many others.
Pay a visit and explore the property for yourself. Call +91 20 6764 1818 to learn more about the project and the prospects it could bring to your table.