NRI Sub-Lease Agreement Template
A ready-to-use sub-lease agreement for NRI property owners leasing to Airbnb hosts in India. Drafted for Indian jurisdiction — covers rent, deposit, permitted use, maintenance, and termination.
What's included
- Party details — NRI owner, host, and property address
- Sub-lease term, start date, and renewal clause
- Monthly sub-lease rent and payment schedule
- Security deposit amount and refund conditions
- Permitted use — short-term Airbnb hosting only
- Maintenance responsibilities of each party
- Guest conduct clause and host liability
- Termination conditions and notice period
- Governing law — jurisdiction clause for NRI owners
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Inside the document
1. Parties and Property
This Sub-Lease Agreement is entered into between the NRI Owner and the Sub-Lessee (Airbnb Host) for the property described below, situated in India.
2. Sub-Lease Term
The sub-lease begins on the stated commencement date and continues for the agreed term. Renewal is by mutual written consent. To avoid creating permanent tenancy rights, the parties may adopt a leave-and-licence structure.
3. Rent and Payment
The Sub-Lessee shall pay the monthly sub-lease rent to the Owner on or before the due date each month, by bank transfer to the Owner's designated NRO/NRE account.
4. Security Deposit
The Sub-Lessee shall pay a refundable security deposit, returnable at the end of the term less any deductions for damage or unpaid dues.
5. Permitted Use
The property shall be used solely for short-term Airbnb hosting. Any other use requires the Owner's prior written consent.
6. Maintenance
The Sub-Lessee shall keep the interior and furnishings in good condition. Structural repairs remain the Owner's responsibility unless caused by the Sub-Lessee's negligence.
7. Guest Conduct and Liability
The Sub-Lessee is responsible for the conduct of all short-term guests and indemnifies the Owner against claims arising from guest occupancy.
8. TDS and Taxes
The Sub-Lessee shall deduct TDS on rent paid to the NRI Owner at the applicable rate under Section 195 of the Income Tax Act (now Section 393 of the Income-tax Act, 2025) and provide the Owner with a TDS certificate.
Frequently Asked Questions
Is sub-leasing legal in India?
Yes, provided the original lease permits it. NRI owners should ensure the sub-lease clause is explicit. Some states require registration for longer tenures.
Who deducts TDS?
The host (sub-lessee) must deduct TDS at 31.2% on rent paid to an NRI owner under Section 195 and issue a TDS certificate.
Do I need to register it?
Agreements of 11 months or less usually don't require registration in most states. Longer terms should be registered at the sub-registrar office.
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