Commercial deposits usually run 2–6 months' rent
Summary
Commercial deposits in India usually run 2–6 months' rent, often interest-free. Year-to-year commercial leases need a registered deed, and both deposit and annual rent count toward stamp duty.
What to check
- Deposits usually run 2–6 months' rent and are often interest-free.
- The Model Tenancy Act 2021 frames this range, but adoption varies by state.
- Under Section 107 of the Transfer of Property Act, year-to-year commercial leases need a registered deed.
- Both the deposit and annual rent count toward stamp duty.
- Many leases lack automatic renewal, so secure a tenant renewal option.