Pravozhil.com > Rent > Commercial rental agreement - a full analysis of the procedure for its conclusion
A rental agreement is a type of rental agreement, commercial or social in nature, the essence of which is the transfer of residential premises for use from one person (its owner - the lessor) to another (temporary resident - the tenant).
Depending on the conditions stipulated in the relevant contract and the general principles of hiring, it can be carried out on a free basis or on a paid basis.
In the first case, the agreement will be of a social nature, and in the second - commercial. It is this type of rental housing that will be discussed in the material presented below. Our resource will fully cover its essence, general principles and procedure.
What is a commercial rental agreement?
What is commercial rental of residential premises?
As noted earlier, the rental of residential premises is a rental agreement obliging the owner to transfer his housing for use to another person who has entered into a corresponding agreement with him.
The main difference between commercial and social hiring is that the former is carried out on a reimbursable basis.
This means that the tenant of the property undertakes to pay for the period of residence in it according to the conditions specified in the contract.
The lessor in a commercial lease can be all personal units of jurisprudence on the territory of the Russian Federation. These include:
- private individuals (ordinary citizens);
- legal entities (organizations, individual entrepreneurs);
- municipality (local government of a specific subject or other territorial unit of our country);
- directly the state, represented by authorized organizations.
At its core, the concept of “landlord” defines the person who is the owner of the housing being rented out or an authorized person who is not the owner of the square meters.
The tenant, in turn, is the person who, under the contract, receives specific housing for rent. As a rule, this is an individual citizen or a group of them.
A commercial lease agreement is a document that defines the procedure and responsibilities of its parties. This agreement must be concluded in writing, but notarization is not necessary.
Responsibilities and rights of the parties
Such an agreement is bilateral, which means that both the tenant and the lessor have both certain rights and certain obligations in this transaction. Their general responsibilities are to comply with all clauses of the contract and legislation relating to commercial hiring.
Also, each party has individual rights and obligations, which should be listed separately.
The rights of the lessor include:
- requiring the tenant to comply with all requirements of the agreement;
- receiving timely rental payments.
The landlord's responsibilities include:
- monitor compliance with the rules of operation of the building;
- carry out or organize capital repair work;
- bear responsibility for housing defects if they interfere with the normal living of residents;
- eliminate the consequences of accidents if they occurred through no fault of the employer.
The tenant under a commercial lease agreement has the right:
- Temporarily move your loved ones into rented housing with the prior consent of the landlord.
- Carry out reconstruction of the apartment with the approval of the owner.
- Move in minor tenants without the consent of the owner.
The tenant also has some responsibilities, namely:
- use rented housing only for living;
- maintain existing property in good condition;
- pay rent and utilities on time;
- carry out routine repair work.
Nuances of the commercial hiring procedure
Commercial rental of housing is not such a complicated procedure in legal terms. When carrying out this procedure, it is enough to adhere to its basic principles and procedure, which are specified in the previously mentioned legislative acts.
Having summarized the information from them, we can highlight the main nuances of the described rental of residential premises. Their general list is as follows:
- Only its owner (who has the corresponding right to the premises being rented) or his representative (acting under the appropriate power of attorney) has the right to rent out housing under such an agreement. If there are several owners of the rental property, then it is necessary to obtain the consent of all of them. Otherwise, the employer may have some problems.
- The objects of commercial housing rental are only residential premises separated from nearby buildings. Thus, the tenant can take possession of an apartment, private house and similar types of housing. It is worth noting that under such agreements the municipality or state has the right to rent out only those housing that is in the commercial housing stock.
- The term of renting housing on a commercial basis is determined by the two parties to the relevant agreement. By law, this period cannot exceed 5 years. If the commercial lease agreement does not specify the period for the provision of housing, it is automatically determined to be 5 years.
- The rent for housing and the procedure for its payment are stipulated in the contract by agreement between its two parties. Neither party to the agreement has the right to change its size unilaterally.
- The transfer of ownership of the rental housing from the lessor to another person does not in any way affect the rental agreement.
- The agreement must be concluded in simple written form. The general format of this is not legally established. It has a free form. In such an agreement, it is important to indicate all the conditions for the provision of housing for rent, the rights and obligations of its parties.
- Termination of the contract is possible both peacefully and in court. The initiator of this process can be both the landlord and the tenant, but only if his opponent in the transaction violates the terms of the agreement or the legislation of the Russian Federation regarding the subject of the agreement or himself.
It is extremely important to take into account the presented nuances, since compliance with them determines how successful the commercial rental transaction will be for both parties to the agreement. Remember this.
Essential terms of the agreement
Before signing this type of agreement, it is necessary to discuss all essential and additional terms of the agreement.
Their list includes:
- duration of hire;
- amount of payment;
- a list of residents who will have the right to live in this residential area;
- the composition of the property that the owner transfers for temporary use along with the apartment;
- conditions for maintaining the apartment, including the procedure for carrying out current and major repairs.
In addition, it is advisable to discuss and include in the contract a clause on the conditions for termination of the contract in advance.
Residential rental agreement
Kurgan April 25, 2022 Mikhail Mikhailovich Mikhalkov, born 01/18/1995, passport: series XXXX number XXXXXXXX, issued by the department of the Federal Migration Service of Russia for the Kurgan region in the city of Kurgan on 01/19/2010, hereinafter referred to as Landlord I Petrovskikh Anastasia Olegovna, 22.01. Born in 1985, passport: series ХХХХ number ХХХХХХ, issued by the department of the Federal Migration Service of Russia for the Kurgan region in the city of Kurgan on January 23, 2005, hereinafter referred to as the Tenant entered into this agreement as follows:
The preamble of the document traditionally includes:
- name of the type of transaction;
- place and date of conclusion of the contract;
- names and roles of parties to the agreement;
- passport details of the parties to the transaction.
Further, the document contains clauses containing essential conditions. These include:
- subject of the agreement;
- term of the contract;
- cost of rent (hiring);
- duties and responsibilities of the parties.
Contract price
Next, the document specifies the rental price for the apartment. Payment can be made in part or as a one-time payment of the full amount. This condition is discussed by the parties and is enshrined in this agreement:
The rent for the apartment is 22,000 (Twenty-two) thousand rubles 00 kopecks and is paid on the 10th of each month during the validity period of this agreement. Payment is made by bank transfer by transferring a sum of money to the Lessor's card. The fixed amount remains unchanged during the term of the agreement.
Ensuring the right to privacy
Often, tenants are faced with an unreasonable invasion of their privacy by the property owner. The landlord can visit the apartment without their knowledge in the absence of the tenants. Or it will appear at an inconvenient time for residents, for example, at night. May place any property in a rented apartment without the consent of the tenants. All of this violates privacy rights. In these cases, a written agreement comes to the rescue. If it clearly states the frequency of visits to the apartment by the owner (once a week/month/quarter), the time of visit - usually during working hours, the possibility of using the property located in the rented apartment - problems usually do not arise. Both parties are ready for the condition and safety of the property to be monitored.
If the agreement is concluded orally, there are a lot of violations on the part of the owner. He can appear in the apartment at any time, citing this right of ownership, without the consent of the tenant, carry out any activities in the rented residential premises, or move in additional residents. To avoid such situations, the time and frequency of visits should be specified in the text of the contract.
Changes in terms and conditions
Can be added upon request:
- one of the persons living with the employer;
- citizens who have united, but at the same time have separate employment contracts;
- adult children of the employer with the approval of other family members.
If, after the expiration of the agreement, the landlord wishes to make changes to the terms of the agreement, then he will need to notify the tenant no later than 90 days before the expiration of the term (in accordance with paragraph 1 of Article 687 of the Civil Code of the Russian Federation). Otherwise, the contract is automatically extended for the same period under the same conditions.
Registration of the agreement
If the agreement is drawn up for a period of 1 year or more, then it must be registered with Rosreestr. Registration prevents the risk that the tenant or owner will not fulfill the obligations specified in the agreement. If there is a registered agreement, the injured party has the right to sue the violator and demand payment of damages.
You can register the agreement by personally contacting Rosreestr or the MFC. Authorized persons have the right to represent the interests of the owner or tenant if they have a power of attorney certified by an employee of a notary agency.
The owner must have the following documents with him :
- passport;
- lease agreement in 3 copies;
- statement;
- certificate of ownership of the object;
- title documents for real estate, which show on what basis a person acquired property rights;
- certificate from the BTI;
- written permission of the spouse;
- power of attorney if necessary;
- a receipt establishing payment of the state duty.
In accordance with Art. 333.33 of the Tax Code of the Russian Federation , the state duty for individuals is 2 thousand rubles , for organizations - 22 thousand .
The application will need to indicate:
- name of the institution, its address;
- Full name, contact details and addresses of the parties to the agreement;
- please register the rental agreement;
- list of attached documents;
- date of preparation, signature of the applicant.
A sample application is provided below.
Sample application for state registration of a real estate lease agreement.docx
Subject of the agreement
This is a description of the residential premises, which allows you to clearly identify the apartment for rent. We recommend indicating the location of the apartment (mailing address, entrance number, floor), cadastral number, total and living area of the premises, number of rooms. If the description of the apartment is general and inaccurate, then there is a risk that the contract will not be concluded. In this case, if a dispute arises, the court will refuse the parties to protect the violated rights and recognize the agreement as not concluded (Article 673 of the Civil Code of the Russian Federation
).
Quite often, residential premises are rented with furniture, household appliances, etc. To avoid controversial situations arising due to the loss or damage of such property, it is advisable to reflect the following in the rental agreement (clause 1 of Article 307.1, clauses 1, 2 of Article 381.1, clause 1 of Article 393, clause 1 of Art. 394, paragraph 1 of article 401, article 676, 678 of the Civil Code of the Russian Federation
):
• compile a list of property located in the apartment that is transferred for use to the tenant;
• determine responsibility for its safety;
• oblige to deposit a certain amount of money as a guarantee to ensure its safety.
Grounds for termination
The list of possible reasons established by Russian law is not exhaustive. Each of the parties to the transaction may decide to terminate the agreement if it believes that the other party is not fulfilling its obligations in good faith.
Help: If the tenant does not live alone in the apartment, then to begin the procedure for canceling the transaction, you need to obtain the consent of other living citizens.
And then send a written notice to the property owner and indicate:
- personal data of the property owner;
- information about the employer;
- address and technical characteristics of the premises;
- eviction date;
- grounds for termination of the contract;
- date of signing the notification and signature of the initiator of the process.
The landlord can force the termination of the agreement through the court if:
- The tenant was late in paying utility bills.
- The tenant or those living with him have damaged housing or other property.
Who signs
According to the legislative norms of the Russian Federation, the parties to the transaction may become:
- Individuals.
- Legal entities (companies, individual entrepreneurs, etc.).
- Local government bodies.
- State authorities vested with appropriate powers.
Parties
The lessor is the one who has the right of ownership of the housing, and the tenant is the citizen who receives the property for temporary use.
For what period is it concluded?
According to the legislation of the Russian Federation, the maximum period for which the parties can enter into a transaction is set at 5 years.
The tenant has the right to extend the contract. The parties to the transaction must discuss the extension 3 months before the end of the agreement .
If this feature is not taken into account, the contract will be considered extended automatically on the previously agreed conditions and for a similar period.
Important! If the agreement does not stipulate terms, the document will automatically be considered concluded for the maximum possible time.
If the landlord refuses to further cooperate with the tenant and enters into a new deal within the next 12 months, the former tenant will have the right to demand compensation for the moral and material damage suffered.
Types of agreements
- Long term . Can be concluded for a period of 1 to 5 years. Upon expiration of its validity, the tenant acquires the right of primary use of housing.
- Short term . Duration less than 12 months. This type of agreement narrows the possibilities of the employer - he loses the pre-emptive right to conclude an agreement, etc.
Object of use
The object of the rental agreement may be:
- A separate premises that belongs to the housing stock. This can be a house or apartment, or part of them. The size of the room does not matter.
- In apartment buildings, the objects of the agreement can be not only residential and auxiliary premises, but also common property that is located outside or inside the housing and serving more than one apartment. This category may include building support structures, electrical, water supply and heating networks, as well as other equipment (in accordance with the provisions of paragraph 2 of Article 673 and Article 290 of the Civil Code of the Russian Federation).
This property is not subject to established standards for the area of premises; their size can only be determined by agreement of the parties.
The only requirement established by law is that the rental housing must comply with sanitary and technical requirements.
Cancellation of the contract
The grounds for cancellation of the agreement are as follows :
- the owner and the tenant came to this decision together (it is recommended to draw up a written confirmation of the cancellation of the contract and the absence of claims against each other in order to prevent conflict situations in the future);
- at the discretion of the tenant (it is necessary to inform the owner of the cancellation of the agreement at least 3 months in advance);
- by court order in the event of initiation of proceedings by the owner.
The court issues a decision on termination if the following circumstances are identified:
- the tenant has not paid for the premises for six months or longer;
- the tenant (or other persons for whose actions he is responsible) caused significant damage to the owner’s property - the court may oblige the perpetrator to eliminate the violations, giving him up to 1 year to do so;
- the property has become unsuitable for use and poses a threat to the life and health of residents;
- other grounds under the Housing Code of the Russian Federation.
Judicial practice shows that the court has the right to make a decision to terminate the contract, regardless of the initiator of the proceedings.
Concept and features
According to the provisions of Article 671 of the Civil Code of the Russian Federation, a residential real estate lease agreement assumes that one of the parties to the transaction, i.e. the owner of the real estate (lessor), undertakes the obligation to provide the other party (tenant) with a property belonging to him on a reimbursable basis for temporary possession and use.
The agreement is concluded between the parties to the transaction after they have reached an agreement on all the essential terms of the agreement.
Unlike social hiring, a potential employer will not need to go through a number of bureaucratic procedures , such as registering people in need of improved living conditions, long waits, obtaining a warrant to move into the provided housing, etc.
A commercial lease agreement can be concluded in all areas, including at the state and municipal level.
The most popular rental housing is on a paid basis in private housing stock. In these cases, the parties to the transaction are the owner of the residential premises and the tenant, who is an individual.