Rental Advance - Commercial Land



New Member
Hi Experts,

I've been having a tenant for our commercial vacant land which has 2 closed warehouses also. This tenant started the lease agreement in 1994, with a rental advance of 10 Lakhs and we requested for a extra 3 lakhs by 2012. However now, I feel that the total advance should ideally be around at least 10 times the rent of 2 lakhs, which is 20 lakhs. So, Can I ask for an extra advance amount of 7 lakhs, so that the total advance sums upto 20 lakhs ???

How Can I justify to my tenant to give extra advance amount. Or what is the proper way to request extra advance amount. Also, please let me know what can be the ideal advance amount for my monthly rent of 2 lakhs. The location is an excellent location for commercial business.

Kind Regards,