Renting space for atm - agreement
Yogeesh
(Querist) 13 September 2013
This query is : Resolved
Hi,
I have a commercial space to be rented at bangalore. Someone from Mphasis/HP, who is the outsourcer for setting up ATMs approached me asking for the space.
He told me that the security deposit will be 3 months rent. the agreement is going to be for 9 years! 10% increase in rent every 3 years. Additional 2HP power connection to be provided, deposit for additional connection to be made by landlord. I was told that all the landlords who have rented out their space for ATMs have the same terms.
The broker who identified the space needs to be paid the entire security deposit received from bank unofficially.
I am not convinced with these people that 9 years agreement is mandatory and their other conditions that are not very condusive. An agreement for 9 years, i would be stuck and won't able to vacate them till then. an increase of 10% every 3 years would not be fetching good returns over 9 years. Please help me to arrive at a decision to rent or not to rent.
I have attached the sample agreement copy sent by the agent for my reference. It will be same agreement which i will be asked to sign. Please advise.
ajay sethi
(Expert) 14 September 2013
contact a local lawyer . it is necessary to get agreement vetted by local lawyer . if you feel 9 years is too long a period then agree for only 3 years period
ajay sethi
(Expert) 14 September 2013
dont pay the broker 3 months security deposit . if you have premises in central location you will get other offers .
Advocate Ravinder
(Expert) 24 September 2013
In my opinion it is a good deal. You can rent it for 9 years no problem. It is normal and general period of 9 years for banks, because it is a public sector undertaking and the banking business will last longer. And the dealing with Banks would be tension free and there would not be any fraud. If you rent to any third party individuals, they may vacate the premises in a short period. In the course of getting new tenant, you may lose few months rents.
Increase of rent you make it 10% for every 2 years and you pay only one month rent to the broker instead of 3 months.
