Whether you are renting or leasing an office, shop or catering establishment, the lease agreement is the foundation of your business relationship. In practice, however, we often see entrepreneurs (and sometimes landlords) underestimating its importance or simply adopting a standard template without giving it much thought. This is a shame — and sometimes risky. A well-thought-out lease agreement prevents conflicts, provides clarity and protects both parties.
The basis of a good lease agreement is determining the applicable rental regime. For commercial premises, there are two types (with the corresponding rental regime): 290 and 230a.
The rental regime determines the duration of the lease agreement, the renewal system and the termination options, among other things.
A lease agreement for 290 commercial space is usually made for a period of five years. After this period has expired, the lease is automatically extended for another five years unless terminated. After this second five-year period, the parties can agree on the duration of the lease.
The lease agreement can only be terminated with one year's notice. A landlord can only terminate a lease if there is a legal reason to do so, such as urgent personal use or poor tenancy. If the tenant does not agree to termination, the landlord will have to take legal action.
The rental regime for 230a commercial spaces is characterised by freedom of contract. The parties are free to agree on the duration of the lease, any extensions and the method of termination.
Please note that, although tenants do not have the same legal rent protection as tenants of 290 commercial properties, they are entitled to eviction protection.
Would you like legal advice on a commercial property lease agreement? Our tenancy law attorneys will be happy to assist you.
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