can contact for precise draft of agreement. 

The licensee shall use the villa for residential purposes only . the licensee agrees not to use the premises for any commercial purposes 

“The  party of second part (tenant/leasee) agrees that the  schedule property will be used exclusively for residential purpose. No commercial activities, business, trading online or offline, gaming online or offline, sports, gymnasium, lending of goods/services, cloud kitchen or any other shall be allowed in the  premises.”

Proper inclusion of such clause depends on the  tenor to agreement. Above draft can be modified as required.                                                               

sure you can use word lessee instead of licensee

Yes, a no commercial activity clause can be added to a residential rental agreement.

One should certainly include “no-commercial activities” clause if the sanctity of a residential premises is to be sustained.

No commercial activity: A clause that prohibits commercial activity on the premises.

The clause should be : that the tenant agrees to not to use or permit the leased/rented premise to be used for any commercial activity.

If the premises has been let out on lease then the tenant would be termed as lessee.

He can be called as licensee only if it was under a leave and license agreement and not on a lease agreement 

Dear Client,

You have enquired as to an addition of a clause for no commercial activities in the rental agreement for your villa, that has to be given for residential purposes to a family. With respect to the appropriate words to be used in the rental agreement, firstly, very clearly, there must be a mention made that the property shall be used SOLELY FOR RESIDENTIAL PURPOSES. Additionally, it must also be specified that, the tenants shall NOT engage, permit, or allow any COMMERCIAL ACTIVITIES, without written prior consent of the owner of the Property, and any violation of the same, would result in severe action being taken including termination of the tenancy at the owner's will. However, it is suggested that, you ensure that the clause formulated is in compliance with the principles enshrined under the Indian Contract Act, 1872, the Transfer of Property Act, 1882, and the Housing Regulations present in your area.

Hope you find this answer satisfactory.

- You can mention in the clause that " The  said villa is only for residential purpose , and the lessee / tenant undertakes that he will not use the demised property for any kind of commercial purposes , and further assured that in the event of non-compliance of this clause the lessor/landlord will have legal right to evict him from the tenanted premises. 

- Further, if the said Villa is a part of the society , then the tenant itself will not get permission from the society to run any commercial activities from the villa. 

At all times during the said term to use and occupy the demised property as residential dwelling house for himself and the members of his family not to keep any paying guests or share accommodation with outsiders and not to carry on nor allow nor permit others to carry on any trade, commercial or business activity in the said premises nor use nor permit others to use the same or any part thereof for any illegal purpose.

1. You shall have to mention that under no circumstances your rented house will be used for any commercial purpose.

2. Engage a local Lawyer to carefully draft the agreement.

1. In case of live and License, the future dispute will not attract Tenancy Act.

2. It is suggested to enter in to live and license agreement for 11 months and then renew it every 11 months if you do not want to take the trouble of registering the said Agreement.

The Tenant agrees that the Premises shall be used solely for residential purposes. The Tenant agress and consented  not to use, or permit the use of, the Premises or any part thereof for any business, commercial, professional, or other non-residential purposes. Any form of commercial activity, whether directly or indirectly, is strictly prohibited on the Premises. Breach of this clause shall constitute a material violation of this Agreement, and the Landlord shall be entitled to terminate the tenancy and take appropriate legal action.

You can use licensee lessee any kind of word wherever tenant has been mentioned.