Commercial Rental Lease Application: Fill & Download for Free

Lease Rental Discounting (LRD) is one of the loan schemes offered by banks under which an applicant obtains loan against his/ her leased property.Under LRD, the borrower pledges the future rental earnings from the leased property to the bank for loan repayment.LRD is typically offered against commercial properties.LRD is particularly beneficial for the builders/ developers who make a huge investment in raising a commercial property for rent/ lease purposes.The investments of the builders are in a way locked as the returns are obtained only in the form of rentals.Thus, they opt for LRD from banks by pledging their future rentals from the property.Banks also ensure that the future rental earnings from the property are secured before offering LRD.The various factors that a bank keeps in mind while offering LRD are:• Profile of the lessee.• Credit worthiness of the lessee in terms of rent paying capacity.• Location of the property with regards to factors such as growth prospects, presence of other industries, civic amenities, etc.• One of the most important points that a bank keeps in mind is that in no way it should be facilitating the conversion of black money into white through LRD.The eligibility of the loan under LRD is calculated by taking 70-75% of the net rental income and dividing it by per lakh EMI of the tenure of left over years in the lease rent agreement.Banks normally open an Escrow account along with the applicant.The rental/ lease income is credited into this account and EMIs are deducted pit of it.

It depend on if it’s a complicated commercial lease or a simple residential rental lease. If you are just renting a home for 12 month, just do some reading and research and you should be fine.

Date (then double space)Owner’s full nameCompany NameAddress (double space)Dear Mr./Mrs Owner’s last name: (double space)(Then something like this…depending on the situation) I am the (owner/manager/lease holder) of a store/shop/commercial property located at 123 Maine Street, Anytown, State/Province, etc. This property is currently zoned for commercial (retail/restaurant/etc.) use and is conveniently located in a prime location (add some benefits of the location)This spacious building offers x feet/meters store frontage facing Main Street, and includes xx square feet/meters of retail space, xx square feet/meters of office space, and XX square feet/meters of stock/storage space. Parking is available (front/back/parking garage, etc.) allowing convenient access for customers. (Add any other features here.)Add any reasons that this property would be an asset to the potential business… are they currently looking for additional space? Are they a new company? List the benefits of the location. Do not make any negative remarks about their current location, if applicable. Simply list the benefits of your location.I would like to set up a meeting, at your convenance, to further discuss the benefits of this property and answer any questions you may have. I will follow up on this letter by calling your office (give a few days) or if you wish to contact me sooner, I can be reached at (phone number & and hours if applicable)Thank you in advance for your time and consideration of this rental/lease proposal. I look forward to meeting you soon.Sincerely, (or “Cordially” or “Best Regards” (then double or triple space, leaving space for your signature)(Sign your name here in legible handwritting, even if it’s not your normal signature)Your Name (typed)AddressPhone numberEmail, if you wantI would not include the price/rental/lease amount in the letter. You want to start out a little higher than you want, because everyone likes to feel like they have negotiated a better deal. Don’t go too high or you can look greedy or turn them off. Don’t discuss price on the phone. Request a personal meeting.When you meet you, if it is not at the location, make sure you have some good pictures of the location, inside and out. Have information on any other expenses associated with the property, including fees for electricity, water, waste disposal, etc. if you are including this in the rental amount, specify that and explain the included cost. Some people prefer to include some of these fees because if the renter does not pay, the owner can get stuck. Depending on where you live you may be able to have the electric service put in the renter’s name do they are personally responsible for the deposit and fees for that, and you can’t get stuck with the bill. Also, that is generally one payment that can fluctuate with the seasons or what equipment or lighting, etc. that they might use.in determining the cost of rental, don’t forget to include the property taxes you are responsible for and insurance on the building. The renter can have their assets insured separately, and this should be in your contract.You need to determine a security deposit and generally people collect first and last month rent. Do a little homework in what other property in the area is renting for and you can probably find some general rental/lease agreements online. Make sure you are legally covered.