Lease agreement for Business premises - FAQ

Lease agreement for Premises - FAQ

Lease agreement for Premises - FAQ

Table of Contents

What is a rental agreement?

A lease is a legally binding contract between a landlord and a tenant that regulates the right to use a premises in return for payment of rent. This agreement reduces the risk of misunderstandings and conflicts between the parties and should always be in place before the tenant gains access to the premises.

When is a rental agreement needed?

A tenancy agreement is required as soon as you are going to let or rent a premises. This applies to offices, retail premises, warehouses and other commercial spaces. A written rental agreement reduces the risk of misunderstandings and conflict between the parties and should always be in place before the tenant gains access to the premises.

Content of the rental agreement

  • Rental period: The agreement can be for an indefinite period or for a fixed period. In the case of an indefinite period, the notice period is usually nine months. For a fixed period, the notice period depends on the length of the rental period.
  • Rent amount and payment: Specify the rent amount, payment terms and what is included in the rent, such as heating, water and electricity. It is also important to clarify if there are any additional costs.
  • Use of the premises: It is important to indicate the purpose for which the premises will be used. The tenant may not change the business without the landlord's approval.
  • Maintenance and repairs: The agreement should clarify who is responsible for maintenance and repairs. Generally speaking, the landlord is responsible for major repairs while the tenant is responsible for ongoing maintenance.
  • Insurance: Clarify what type of insurance is required and who will pay for it. Both the landlord and the tenant may need specific insurance policies to protect their interests.

Termination of Lease Agreement

Termination of a rental agreement can be done by ordinary notice or forfeiture. Forfeiture means that the agreement can be terminated immediately in case of serious breach of contract, such as non-payment of rent or illegal subletting. For normal termination, the notice periods specified in the agreement apply.

Rent increase and change of terms

The landlord can raise the rent by reaching an agreement with the tenant or terminate the agreement for a change of terms. A written notice must include the new terms and conditions and the reasons for the change. If the tenant does not accept the new conditions, the dispute can be referred to the rent board.

Security of tenure

Tenants have indirect possession protection, which means that they are entitled to compensation if the landlord terminates the agreement without a valid reason. There are exceptions if the tenant misbehaves or if the building is to be demolished or rebuilt.

Practical Tips and Templates

It is common to use standard templates as a starting point for rental agreements. The landlord's standard contract is a good foundation that covers most aspects of a tenancy. It is important to go through all parts of the agreement and any annexes carefully, preferably with the help of a lawyer.

Legal Aspects

The most important laws that regulate premises rent in Sweden are the Land Code, especially chapter 12, which covers the Rent Act. This law provides the framework for the rights and obligations of both landlords and tenants. For more information, see Jordabalken chapter 12 .

Conclusion

A well-written tenancy agreement is essential to avoid future conflicts. Both tenants and landlords should understand and review all contract terms carefully. By following the guidelines above, both parties can ensure that their rights and obligations are clearly defined and protected.

By taking advantage of templates and legal advice, the process can be simplified and ensured that it complies with current laws and practices.

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