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Warehouse Rent Agreement Format

Warehouses carry heavy goods, forklifts, and fire risk, so the lease must address more than rent. This format covers loading access, floor load limits, safety, and who insures the stored goods.

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A warehouse lease lives or dies on operational details. Before signing, verify the floor load capacity against your heaviest racking, the dock height against your trucks, the ceiling height for stacking, and the power supply for any cold storage or machinery. These are expensive to discover after you have moved in.

Insurance deserves its own line in the agreement. The building is the owner's asset, but the goods inside are yours, so the tenant should carry stock insurance and public liability cover. Confirm who maintains fire extinguishers, sprinklers, and the boundary security, and write it down, since insurers ask these questions when a claim arises.

A non-obvious tip: record the warehouse's condition with dated photos and a joint inspection note on day one, including the floor, shutters, roof, and drainage. Warehouse damage disputes are the costliest in commercial renting because floor repairs run into lakhs, and without baseline evidence the tenant is presumed responsible for everything found at exit. Also clarify in writing whether subletting spare pallet space to a third party is allowed, since many tenants quietly do this and owners treat it as a breach.

Pay attention to the access schedule as well. If your business needs trucks moving at night, get 24-hour access written into the agreement rather than relying on the guard's goodwill. Confirm the approach road can handle your largest vehicle in all weather, since a warehouse that floods every monsoon or cannot take a container truck will cost you far more than the rent you negotiated.

Frequently asked questions

Who insures the goods stored in the warehouse?
The tenant, unless the agreement says otherwise. The owner's building insurance covers the structure, not your stock. Take out stock and public-liability insurance from day one, and keep the policy active for the whole lease term.
Can I store any type of goods in the warehouse?
Only what the permitted-use clause allows. Hazardous, chemical, or highly flammable goods need the owner's written approval and may need municipal licences and extra fire compliance. Storing unapproved goods can void your insurance and breach the lease.
What are typical warehouse lease terms?
Three to five years is common, with annual escalation of around 10 percent and a deposit of three to six months' rent. Longer terms often come with a lock-in period, so negotiate the exit clause before signing if your storage needs may change.

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