Explainer: How to draft a proper shop rental agreement in Bangladesh
A shop rental agreement may be handwritten or computerised, usually executed for a fixed period with monthly rent. Both owner and tenant should carefully understand the terms before signing. Disagreements should ideally be settled through mutual discussion
Renting a shop is essential for many businesses, but a proper rental agreement is crucial to avoid disputes between owners and tenants. Many new shop owners or tenants often rely on neighbourhood computer shops to prepare these documents.
These drafts may contain errors or omissions. Knowing the key elements of a shop rental agreement helps both parties correct mistakes, ensures clarity, and protects their rights and obligations under the contract.
A shop rental agreement may be handwritten or computerised, usually executed for a fixed period with monthly rent. Both owner and tenant should carefully understand the terms before signing. Disagreements should ideally be settled through mutual discussion.
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The agreement must be prepared on a Tk300 non-judicial stamp paper. Drafts written on plain or cartridge paper without such a stamp are legally invalid and cannot be enforced in case of disputes.
The agreement may have one or two original copies. If only one is prepared, the tenant keeps it while the owner retains a photocopy. If two are made, each party signs and keeps one copy.
The document should state the number of pages, whether handwritten or computerised, the number of witnesses, and which party holds the original copy. These details help avoid disputes over authenticity and completeness.
Key conditions of a shop rental agreement
The rental period should specify start and end dates, including conditions for renewal or termination. Monthly rent and any advance security deposit must be clearly stated, with rules for deposit use and return.
Responsibilities such as utility bill payments, shop maintenance, and repairs should be outlined. Clear mention of these obligations prevents conflict over costs during the tenancy period.
Tenants must use the shop only for the agreed purpose. They cannot sublet or engage in illegal, harmful, or disruptive activities, ensuring proper use of the rented space.
Eviction conditions and notice periods must be included to protect both sides. These provisions ensure fairness if either party decides to end the agreement.
Any change in business type, renovations, or structural modifications must be documented and agreed upon in writing by both parties to remain valid.
The agreement should also address responsibility for damage to the shop or its equipment. Proper documentation and witness signatures are necessary to maintain legal validity and enforceability of the contract.
Sample shop rental agreement
The following is a sample shop rental agreement for reference. It is a general format that can be adapted to specific cases:
First Party/Owner: Md. Rahim Mia, son of Md. Karim Mia and Ayesha Khatun, NID: 00000000000, current address: 5/7/2 Banshal Road, Dhaka.
Second Party/Tenant: Md. Sohel Rana, son of Md. Bablu Mia and Zulekha Khatun, NID: 00000000000, current address: 11/1 Sen Road, Rampura, Dhaka.
The parties have agreed that the shop, located at Maer Doa Market, Senpara, Rampura, Dhaka, will be rented for a period of three years from 01/07/2025 to 31/07/2028. Monthly rent is fixed at Tk15,000, with an advance deposit of Tk300,000. The first party will arrange electricity connections while the tenant pays the bills. Any damage to the shop will be repaired at the tenant's cost. The tenant will use the shop only for the agreed purpose, cannot sublet. Both parties signed the agreement in the presence of at least two witnesses. The tenant retains the original copy, while the owner keeps a photocopy.
The conditions explained above are applicable to this sample agreement. Following them ensures clarity, legality and smooth business operations for both parties.
