Shop Rent Agreement in Kerala: What You Need to Know

If you`re planning to rent a shop in Kerala, it`s important to understand the legalities involved in signing a shop rent agreement. A shop rent agreement is a legal document that outlines the terms and conditions of the rental agreement between the landlord and tenant. This agreement is essential to protect both parties and avoid any misunderstandings that may arise in the future.

In Kerala, the rent control laws are governed by the Kerala Rent Control Act, 1965, which lays down the legal framework for renting shops. The Act provides protection to both landlords and tenants, and both parties must ensure that they comply with the provisions of the Act while drafting the shop rent agreement.

Here are some important points that you need to keep in mind while drafting a shop rent agreement in Kerala:

1. Rent and Security Deposit

The rent amount and security deposit are usually mentioned in the agreement. The rent amount should be mentioned both in words and numbers, and the security deposit should not exceed three months` rent. The agreement should also mention the date on which the rent should be paid and the consequences of not paying the rent on time.

2. Duration of the Lease

The duration of the lease agreement should be clearly mentioned. In Kerala, the maximum duration of a lease agreement is 11 months. If the lease agreement is for a longer period, it needs to be registered as per the Registration Act, 1908.

3. Maintenance and Repair

The agreement should mention who is responsible for the maintenance and repair of the shop. Usually, the landlord is responsible for major repairs, while the tenant is responsible for minor repairs. The agreement should also mention the consequences of any damage caused by the tenant.

4. Termination of Agreement

The agreement should specify the conditions under which the agreement can be terminated by both parties. For instance, if the tenant fails to pay the rent for more than two consecutive months, the landlord has the right to terminate the agreement.

5. Subletting

The agreement should clearly state whether subletting is allowed or not. If subletting is allowed, the terms and conditions of subletting should be clearly mentioned, including the rent to be paid by the sub-tenant.

In conclusion, while renting a shop in Kerala, it is important to understand the legal formalities involved in drafting a shop rent agreement. Both the landlord and tenant should ensure that the agreement is drafted keeping in mind the provisions of the Kerala Rent Control Act, 1965. This will help avoid any legal disputes in the future and ensure a smooth and hassle-free renting experience.