HOMESTAY / GUEST HOUSE LEASE DEED
This Lease Deed (this "Deed") is made at __________ on __________.
BETWEEN
__________, __________, of __________, PAN __________ (the "Lessor");
AND
__________, __________, of __________, PAN __________ (the "Lessee").
The Lessor and the Lessee are each a "Party" and together the "Parties".
RECITALS
A. The premises described in Schedule I are referred to as the "Premises". The Premises are situated at __________. The Lessor is __________.
B. The Land on which the Premises stand is recorded in the revenue record as __________.
C. __________.
D. The Lessee has requested a lease of the Premises to run a homestay, guest house or bed-and-breakfast establishment there, and the Lessor has agreed to grant one on the terms set out below.
E. The Parties intend this Deed to create a lease within the meaning of s.105 of the Transfer of Property Act, 1882, transferring to the Lessee the right to exclusive possession of the Premises for the Term, and not a licence.
NOW THIS DEED WITNESSES as follows.
- GRANT AND TERM
1.1 The Lessor grants to the Lessee, and the Lessee takes, a lease of the Premises for a term of __________ years commencing on __________ and expiring on __________ (the "Term"), with the right to exclusive possession of the Premises for the Term, subject to this Deed.
1.2 The Lessor shall deliver possession of the Premises to the Lessee on the Commencement Date with the rooms, fixtures and furnishings described in Schedule II, and with sanctioned electricity and water connections available.
- RENT
2.1 The Lessee shall pay the Lessor a monthly rent of __________ for the Premises, in advance, on or before the seventh day of each calendar month.
2.2 __________. Any escalation is calculated on the Rent payable immediately before the increase and takes effect from the first day of the month following completion of the relevant period.
2.3 If Rent is not paid within seven days of its due date, the Lessee shall pay interest at 18% per annum on the overdue amount from the due date until payment.
- SECURITY DEPOSIT
3.1 The Lessee shall pay the Lessor, on or before the Commencement Date, __________ as an interest-free refundable security deposit.
3.2 The Lessor may deduct from it only unpaid Rent or other charges, the reasonable documented cost of damage beyond fair wear and tear, and any amount payable on early termination under clause 8.
3.3 The Lessor shall refund the Security Deposit, less permitted deductions supported by a written statement, within __________ days of handover of vacant possession.
- USE, LICENSING AND COMPLIANCE
4.1 The Lessee shall use the Premises only to run a homestay, guest house or bed-and-breakfast establishment for paying guests, and for no other purpose without the Lessor's prior written consent.
4.2 Registration: __________. The Lessee shall obtain and maintain, at its own cost, every registration, licence, fire safety and health approval its operation of the Premises requires, and shall not commence taking guests before the applicable registration is in place. The Lessor shall sign any consent or NOC required from the owner for that registration, at the Lessee's cost, and shall not unreasonably withhold or delay it.
4.3 The Lessee shall maintain the safety measures the applicable Rules require — fire extinguishers, first aid, and CCTV coverage of common areas where mandated — and shall comply with guest-registration and reporting obligations under the Registration of Foreigners Rules and any local police or tourism reporting requirement.
4.4 Utilities: __________.
4.5 Municipal or panchayat property tax is borne by __________.
- MAINTENANCE, ALTERATIONS AND FIXTURES
5.1 The Lessor shall keep in good repair, at its own cost, the structure, roof and external walls, and shall remedy latent defects.
5.2 The Lessee shall keep the interior, fixtures and furnishings listed in Schedule II in good repair, keep the Premises clean, and make good damage caused by its guests, staff or contractors, fair wear and tear excepted.
5.3 The Lessee may carry out internal, non-structural alterations and add signage for the establishment's branding with the Lessor's prior written consent, not to be unreasonably withheld, and shall remove signage and make good on handover.
- INSURANCE
6.1 The Lessor shall insure the building against fire and allied perils for its reinstatement value.
6.2 The Lessee shall insure its own furnishings, stock and equipment, and shall maintain public liability cover appropriate to a guest-accommodation business.
- THE REGISTRATION QUESTION, RECORDED
7.1 The Parties record their understanding at clause 4.2 as the basis on which this lease is entered into, but acknowledge that eligibility to register under the Himachal Pradesh Home Stay Rules, 2025 turns on conditions the Tourism Department applies and not on this Deed, and that nothing in this Deed binds that Department's assessment.
7.2 Where __________ states that the Lessee is not an agriculturist and the Land is agricultural or horticultural land under clause B, the Parties acknowledge that permission under section 118 of the Himachal Pradesh Tenancy and Land Reforms Act, 1972 may be required for this lease, and that this Deed is not effective to grant possession for the Term until any permission required has been obtained.
- NOTICE, TERMINATION AND LOCK-IN
8.1
8.2 After the expiry of any lock-in period, either Party may terminate this Deed for convenience by giving the other __________ months' prior written notice.
8.3 On a material default not remedied within thirty days of written notice, the other Party may terminate this Deed by fifteen days' further written notice and, in the Lessor's case, recover possession only in accordance with law.
- EXPIRY AND HANDOVER
9.1 On expiry or earlier termination, the Lessee shall hand over vacant and peaceful possession of the Premises together with all keys.
9.2 __________.
9.3 The Lessee shall clear all utility and statutory dues relating to its occupation up to the date of handover.
- INDEMNITY
10.1 The Lessee shall indemnify the Lessor against claims, losses and reasonable legal costs arising from its operation of the establishment, the acts of its guests, staff or contractors, and its breach of this Deed.
10.2 The Lessor shall indemnify the Lessee against claims arising from a defect in the Lessor's title, a prior encumbrance, or the Lessor's breach of this Deed.
- STAMP DUTY AND REGISTRATION
11.1 __________. __________ shall bear the stamp duty, the registration fee and the incidental charges of registration.
11.2 Where this Deed is compulsorily registrable, the Parties shall present it for registration before the Tehsildar or Naib-Tehsildar exercising the powers of Sub-Registrar for the Tehsil in which the Premises lie, within four months of execution, with both executants or their s.33-authenticated attorneys attending in person with photo identification and PAN.
- NOTICES
12.1 Notices under this Deed shall be in writing, delivered by hand against acknowledgment or by registered post or courier, to the Lessor at __________ and to the Lessee at __________.
- DISPUTE RESOLUTION AND GOVERNING LAW
13.1 __________.
13.2 The seat and venue of any arbitration, and the place of any court proceedings, is __________, whose courts have exclusive jurisdiction, subject to any arbitration agreed above and to any statutory bar on the jurisdiction of the civil court.
13.3 This Deed is governed by the laws of India as in force in Himachal Pradesh.
- GENERAL
14.1 This Deed, with its Schedules, is the entire agreement between the Parties about the Premises.
14.2 No amendment is effective unless in writing and signed by both Parties.
14.3 If any provision is held invalid, the rest of this Deed continues in effect.
SCHEDULE I — THE PREMISES
__________, situated at __________.
SCHEDULE II — ROOMS, FIXTURES AND FURNISHINGS
__________
IN WITNESS WHEREOF the Parties have executed this Deed at __________ on __________.
SIGNED AND DELIVERED by the LESSOR
__________
PAN: __________
Signature: ______________________________
SIGNED AND DELIVERED by the LESSEE
__________
PAN: __________
Signature: ______________________________
WITNESSES
- __________
__________
Signature: ______________________________
- __________
__________
Signature: ______________________________