Entrepreneurs most often use rented premises to do business, as this allows them to start their own business without large start-up costs.

Non-residential space intended for commercial activities is best for rent. It is possible to start a business in residential premises, but only individuals — self-employed and individual entrepreneurs — have such an opportunity. At the same time, it is important that you do not violate the rights and interests of other citizens, and also do not place production on such territory.

So, you’ve found a suitable space and decided to sign a lease agreement. To begin with, we recommend that you request documents from the landlord.

Check documents

Make sure that the landlord owns the premises that he gives you. This can be done by ordering an extract from the Unified State Register of Real Estate (USRRE). This will help ensure that the premises are not pledged or under arrest. Also ask your landlord for:

the document on the basis of which he owns the property (purchase agreement, lease agreement, etc.);

BTI passport and cadastral passport for the premises.

Read the essential terms of the contract

It is important to pay attention to the essential conditions: the subject of the agreement, the date, place of its conclusion and validity period, price, details of the parties. If any of these clauses are not in the agreement, it may be declared invalid.

The subject and object of the contract

It is important to distinguish between the subject and object of the lease agreement.

The subject will be your relationship with the landlord — the obligations of the parties to transfer property, use it, as well as pay for the use of the property.

An object, on the other hand, is a property that is leased. Therefore, it is very important that the contract specifies its characteristics in as much detail as possible, otherwise the agreement is considered not concluded. Such criteria include cadastral number, address, area, number of rooms and other parameters of the premises that are present in the extract from the USRRE. It is better if you ask the landlord for a copy of the property’s cadastral passport before the lease agreement.

It should be noted that the components of the premises cannot be leased. Court practice has shown that a lease agreement for a wall or corner in a sales area cannot be concluded.

Contract duration

The term of the lease agreement is established by mutual consent of the parties. It is important to note that if you enter into an agreement for more than one year, it is subject to state registration. Such an agreement comes into force only after this procedure has been carried out.

The validity period of agreements should be set as a calendar date or a period of time in years, months, weeks, days, hours.

Please note that if the specified period of validity has passed, but you continue to use the property and the tenant does not object, the agreement is considered automatically renewed under the same conditions for an indefinite period. This means that such an agreement can be terminated at the request of either party; it is only necessary to notify the counterparty three months in advance, unless the document specifies other conditions.

Price, rent

The contract must specify the procedure and deadline for payment. There are several types of payments that are required by law:

a certain amount that can be paid periodically or paid once;

the share of income received during the use of property;

provision of services to the tenant;

property improvement costs.

In addition to the rent, the tenant pays for utilities provided to him: electricity, gas, water, etc. Such costs may be included in the rent or will remain as an additional clause — whichever option you choose, it is better to reflect it in the contract.

Please note that the landlord does not have the right to unilaterally change the rental price. If you do not have other terms for revising the rent in the agreement, it may be changed by agreement of the parties no more than once a year.

Note the insignificant but important clauses of the contract

Write down the amount of value added tax to avoid possible disputes. Renting out property is a VAT transaction. The landlord is the tax payer. As a general rule, the tenant receives an invoice, where the VAT amount is displayed in a separate line. If the landlord is not a VAT payer, ask him for a supporting document and include it in the contract.

Describe the possibility and procedure for the tenant to make inseparable improvements to the property. It is better to provide a refund in advance if you are going to make repairs at your own expense.

Describe the procedure for approval with the owner of the reorganization and redevelopment facility. Remodeling is such structural changes to the premises that must be included in the technical documentation. For example, moving walls and modifying entrances. But reorganizations change engineering systems: plumbing, heating appliances, and so on. Most often, hairdressers are faced with reconstruction.

Indicate whether or not the property can be subleased.

Write down the procedure for access to the room. Usually, controversial issues occur when rent arrears occur, so it is better to specify in advance what will happen in this case. For example, the tenant will be denied access to the premises, while his property will be protected.

The ability to install advertising structures on the outer walls and other elements of the building.

Early termination procedure. It is important to convince the landlord to include in the contract your right to terminate the agreement, except as required by law, otherwise you will have to pay the rent before the contract ends. You can also insist that the list of reasons why a landlord can terminate an agreement by law should not be increased. In this paragraph, pay attention to fines and sanctions from both sides.

It is better to sign an act of acceptance and transfer of property at the time of its receipt and alienation.

Source: https://lifehacker.ru/kak-zaklyuchit-dogovor-arendy/

For questions regarding ownership, please contact the author of the original text.