7 Lawyer Tips to Look for Before Leasing Business
15min decided to ask what to look for before concluding a home lease.
1. Lease agreement – a necessity
The rent is determined by agreement of the parties and may be recalculated, but not more than once a year.
According to the partner of the law firm TRINITI LT, lawyer Deivis Valiulis, the lease agreement does not always have to be in writing, but only to formalize in writing the obligations of the parties regarding the disputed or to perform them. First of all, according to him, there are two types of contracts – a simple lease agreement and a residential lease agreement. The first form of these contracts.
“The law stipulates that a simple lease agreement for terms longer than one year must be in writing, and the form of the residential lease agreement must be changed, from which of the persons concluding it and the term of the lease. If the dwelling is rented by the state, municipality or legal person, a written agreement must be concluded, and open-ended lease agreements between natural persons may also be concluded orally. A fixed-term lease agreement for a residential premises, independent of the parties to it, is necessary to conclude a letter, ”says the lawyer.
D.Valiulis states that the peculiarities of the termination of a residential premises connected to a simple lease agreement and its termination. The Civil Code stipulates that the lease of a dwelling may be declared invalid, it may be terminated, and natural persons may be elected from the dwelling only in court, except in cases of eviction under the prosecutor’s sanction provided for in the Civil Code. And other types of leases can be terminated without going to court.
2. The lease must be comprehensive
According to the lawyer, the object of technical purpose important in the lease agreement is the address of the leased premises, number of rooms and other premises, total area, equipment in the premises, affiliations and conditions for using common premises, amount of rents, services order.
The rent is also determined by agreement between the parties and can be recalculated, but not more than once a year.
‘The terms of the lease, which entitle the lessor to unilaterally recalculate or change the rent more than once a year, shall not apply. Also, landlords do not have the right to demand payment of rent in advance, except for the first month, ”D. Valulis checks.
The landlord undertakes to hand over the object of the lease to the lessee, to ensure its suitability for living and to obtain all the requirements in a state that meets the requirements at the time of the transfer of the condition and for the entire term of the lease.
The tenant undertakes to pay the rent, use the services and use the dwelling, return it to the condition as it was at the time of the transfer, possible to normal depreciation.
“Members of the lessee’s family have the same rights under the lease as the lessee,” 15min to know D.Valiulis.
Routine repairs must be performed by the tenant, the tenant is obliged to perform major repairs.
He points out that the lease of a dwelling may be terminated or indefinite, the term being determined by agreement between the parties. The parties may renew the fixed-term access to the dwelling by concluding a new term or an open-ended lease. At the end of the term of the residential lease agreement, the lessee has the priority right to conclude the lease agreement for a new term, if he fulfills the terms of the performance agreement.
“Terminated landlords are renting a car. The tenant has the right to terminate both the fixed-term and open-ended contract by giving one month’s written notice to the landlord. In order to terminate an open-ended lease, the landlord must give six months’ written notice to the landlord, and the fixed-term lease may be terminated only in the event of a material breach of contract and only in court, ”he says.
What is considered a material breach of contract?
- The tenant has more than 3 months free to receive rent or utility bills.
- The tenant, his family members or other persons living with him destroy or damage the dwelling or use it for other purposes
- By misbehaving, individuals create impossible conditions for others to live together or side by side.
In the event of at least one of these breaches, landlords have the right to sue for breach of the term lease.
3. Overhaul and current repairs. Whose duty is it to perform them?
It is advisable to describe all visible deficiencies in the lease agreement, it is worth filming or photographing the dwelling.
According to D. Valulis, current repairs must be performed by the lessee, the lessor’s obligation is to perform major repairs.
Overhauls are repairs where worn load-bearing structures are reinforced or replaced, such as emergency walls, ceilings, replacement or installation engineering systems or their elements, repair works of waste engineering systems, such as electrical installation, plumbing and the like. It is the performance of these works that the tenant has the right to demand from the landlord.
During overhauls, landlords have the right to require the tenant not to use the rented accommodation temporarily, in which case the tenants have the right to a reduction in rent, compensation or termination of the lease.
Since one of the tenant’s responsibilities is spent on maintaining the rented dwelling and reimbursing the cost of maintaining the dwelling, the tenant has a duty to make routine repairs unless otherwise agreed. For routine repairs, look for routine repairs, such as replacing a light bulb, scratching walls, and the like. This is the responsibility of the tenant.
“It is often the case that the tenant wants to make certain requests while living in the apartment, but in all cases it will not be possible to pick them up at the end of the lease. If the tenant allows the landlord to rent the rented accommodation on request, he is entitled to reimbursement. In case the landlord’s consent has not been obtained and the landlord does not agree and compares the desired values, the paging performed by the tenants can be taken only if they can be separated without damaging the rented dwelling, ”comments D. Valulis.
4. Before paying the deposit, make sure that you pay him to the person entitled to rent housing
An attorney advises that before paying the amounts claimed by the landlord, you need to know to whom you are going to pay them. It is common practice for landlords to require a one- or two-month rent deposit to cover the landlord’s losses if he or she were to withdraw the entire lease.
However, before paying a deposit, it is important to check that you are paying others who are entitled to claim it. In this case, you may want to ask for an extract from the Real Estate Register to see who the prospective owner is.
“If you really want a person who is going to rent a home to you, there is no record in the public register as a landlord who wants to have a lease with the landlord and is going to sublet the home. Then it is necessary to ask to submit the lease agreement and the owner’s consent to sublease the dwelling, if it is not included in the lease agreement, ”- advisor D.Valiulis.
5. Film or photograph the entire dwelling
Living in a home can remove scratch walls, damage furniture or crack tiles, which often leads to disputes with the landlord at the end of the lease. The landlord can abuse this to keep the deposit paid.
“First of all, it is advisable to describe all the visible shortcomings in the lease agreement, as well as to film or photograph the dwelling and add these photos or recordings as an appendix to the lease agreement,” said D. Valulis.
6. Insure the property
You want to want losses due to damage to housing, furniture or neighboring property, such as water supply accidents, as well as would like to want property from or, TRINITI LT partner advises to discuss the civil liability of housing as a property unit, property and housing board insurance issues.
It is important for the tenant to find out if the rented property and the property in it are insured. If not, it is necessary to agree on whether insurance contracts have been concluded, to agree on the procedure for payment of insurance premiums.
“However, the insurance of the home and the property in it is rented for compensation of the offered losses only due to the damage of the home and the property in it. If the accident or breakdown of the events would damage the property of the neighbors, the insurance of the property in it will not be protected.
If you want to protect yourself from damage to your neighbors ‘property, tenants are required to enter into a future manager’s civil liability insurance contract, according to which the neighbors’ experience would be covered by the insurance company, ”D. Valulis commented.
7. The right to declare residence in the rented dwelling
By concluding a lease agreement, the tenant acquires the right to declare the place of residence in the rented dwelling. If the landlord does not give separate consent to declare the place of residence in his dwelling, then the concluded lease may be documents on what payments to provide the institution declaring the place of residence.
“In this case, however, it is advisable to state in the lease agreement that the landlord does not object to the tenant declaring the place of residence in the rented dwelling. If there is no such provision in the lease agreement, it is likely that the declaring institution will ask for an additional separate consent of the tenant, ”D. Valulis said.
The lease agreement between the tenant and the landlord must also specify the time at which the place of residence is declared in the rented dwelling. If a fixed-term lease is concluded, then the place of residence in the tenant will be declared for that term, if an open-ended lease is concluded, then the place of residence is also declared for an indefinite period.