Renting space for atm
Yogeesh
(Querist) 10 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.
Kiran Kumar
(Expert) 10 September 2013
Generally, the expenses for Power Connection and other Municipal charges are to be paid by the concerned bank.
Mandatory period of 9 years does not sound good. There shall be some clause for early eviction.
Rajendra K Goyal
(Expert) 11 September 2013
The power connection installation of the required need is generally provided by the land lord. monthly usages bill and municipal taxes are to be paid by the Bank.
Brokerage is on very high side. You may enter for an agreement for 5-6 years with provisions of increased rent.
Get the agreement scrutinized by your lawyer before execution.
