Commercial Apartment Rental

Leasing of commercial premises is regulated by special legislation. This applies when the leased property is used for purposes other than residential. Whether the lessor is a company or a private individual is not inherently significant; what matters is what the contract has stipulated regarding the primary use. The distinction from residential leasing is most evident in the fact that many provisions can be deviated from through a separate agreement.

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A commercial lease agreement can be entered into for a fixed term or an indefinite term. If the parties haven't agreed on the duration of the contract and no other law dictates otherwise, the contract is assumed to be in effect indefinitely.

A fixed-term lease agreement generally cannot be terminated during its term. This means that the tenant commits to paying rent for the entire agreed period, regardless of circumstances. However, early termination of a fixed-term agreement can be agreed upon between the parties. It's important to note that a fixed-term agreement must be in writing; otherwise, it will be interpreted as an indefinite-term agreement.

An indefinite-term contract is usually terminated through notice of termination or termination. The notice period can be freely agreed upon. If no specific period is agreed upon, the law's provisions apply: for the lessor, the notice period is three months, and for the lessee, it's one month. The notice period typically starts from the beginning of the month following the notice date. In the contract, the parties can always agree on specific terms that suit the situation best.

It's advisable to specify payment terms in detail, including the amount, due dates, and late payment interest. This significantly clarifies the proof of what has been agreed upon between the parties in case of disputes.

If value-added tax (VAT) is to be included in the rent, this should be mentioned in the contract, as the general assumption is that leasing real estate and share apartments is not subject to VAT. The situation changes if the lessor has opted to become liable for VAT due to leasing activities and the lessee operates business in the premises.

The parties can agree on who is responsible for costs related to the premises and, for instance, the procurement of maintenance services. If this hasn't been agreed upon, the law's provisions apply. Such responsibilities are considered to be included in the rent amount.

It's also advisable to prearrange the insurance of the property. Typically, the lessee commits to taking out liability insurance covering at least a certain amount of damage. Additionally, other obligations towards each other might arise, so it's wise to have these mentioned in the contract as well. It's common for all indirect damages to be excluded from liability.

In commercial space leasing, it's common to arrange a security deposit to protect against potential damage caused by the lessee or rent payment defaults. The deposit doesn't necessarily have to be in the form of money, but in this case, it's essential to carefully consider the actual value of the security deposit to the lessor or whether the deposit's value is too significant from the lessee's perspective.

Usually, the security deposit is placed in a bank account, which is pledged to the lessor. When arranging the security deposit, it's important to define precisely under what circumstances the lessor can utilize the deposit.

The law allows subleasing for up to half of a commercial space. Typically, this right is restricted in the contract, but it's also possible to agree differently. In a subleasing arrangement, the original lessee becomes the sublessor. The rules governing termination protection or damages don't apply to subleasing relationships; these generally pertain to the original lessee.

If a tenant sells their business to someone else, it's crucial that the lease rights for the business premises are also transferred. For this situation, the law stipulates that when a commercial space tenant transfers their business, they can transfer the lease rights to another without the lessor's permission, unless otherwise agreed upon or the lessor has justifiable reasons to object to the transfer of lease rights.