What is the correct way to conclude a commercial premises lease agreement?
The lease of any commercial space, be it an LFA or an ordinary building, implies many important nuances, which directly affect the further relationship between the landlord and the tenant. The importance of correctly drafting a lease agreement is really high, let’s look at the main points that are worth paying attention to, both the owners of commercial premises, who rent them out, and the tenants.
What should be stated in the contract?
• Full address, registration data (data specified in the title deed + certificate details).
• Total area and, if necessary, floor.
• Lease period (otherwise, it will legally be considered that the agreement is concluded for an indefinite period).
• Amount of payment (if this item is not spelled out, the agreement is considered invalid). It is permissible to change the rate according to the terms specified in the agreement, but not more often than once a year. It is also permissible to indicate in advance in the contract the maximum amount by which the rate can be increased.
• Distribution between the parties of payments for the maintenance of commercial premises (who will pay for utilities, cleaning, security, current repairs, telephone, Internet, etc.).
• It is desirable to attach to the contract the BTI and the plan of the building with the allocated lease area.
The agreement must be registered with a notary only for rentals of 3 years or more. With a shorter rental period, there is no need for notarization, and the agreement will be considered legally valid anyway. The most common option is to conclude a contract for 1 year with the possibility of further prolongation.
The lease period starts from the moment the two parties sign the act of acceptance and transfer of commercial real estate – this is the actual granting of the right to use the building.
If at the end of the period specified in the agreement, none of the parties expresses a desire to interrupt it, then in the future the agreement will be interpreted as concluded for an indefinite period. The conditions for its extension will not differ from the primary ones, if one of the parties does not wish to change them – in this case, an additional agreement is concluded.