HOMESTAY / GUEST HOUSE LEASE DEED
BETWEEN
__________, __________, of __________, PAN __________ (the "Lessor");
AND
__________, __________, of __________, PAN __________ (the "Lessee").
The Lessor and the Lessee are each a "Party" and together the "Parties".
RECITALS
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.
- 1. GRANT AND TERM
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.
- 2. RENT
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.
- 3. 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.
- 4. 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.
4.3 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.
- 5. 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.
- 6. 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.
- 7. 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.
- 8. NOTICE, TERMINATION AND LOCK-IN
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.
- 9. 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.
9.3 The Lessee shall clear all utility and statutory dues relating to its occupation up to the date of handover.
- 10. 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.
- 11. STAMP DUTY AND 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.
- 12. 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 __________.
- 13. DISPUTE RESOLUTION AND GOVERNING LAW
13.3 This Deed is governed by the laws of India as in force in Himachal Pradesh.
- 14. 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
SCHEDULE II — ROOMS, FIXTURES AND FURNISHINGS
SIGNED AND DELIVERED by the LESSOR
__________
PAN: __________
Signature: ______________________________
SIGNED AND DELIVERED by the LESSEE
__________
PAN: __________
Signature: ______________________________
WITNESSES