Real Estate Rental: The Effects of the Lease Contract
Real Estate Rental: The Effects of the Lease Contract

Real Estate Rental: The Effects of the Lease Contract

Before renting a property, it is essential to know your rights and obligations as a tenant or landlord. The real estate rental is based on a legal aspect like the conclusion of a lease contract between the lessor and the tenant. This contract aims to rent out a property for a specific renewable or indefinite period in return for a rent. The contract can be a lease contract for use as a principal residence, a lease contract for commercial use, and a professional lease contract. At the end of this contract, various conditions must be established. The contract is signed by both parties in the form of a private deed that does not require the intervention of a public officer or an authenticated deed.

Residential Lease Agreement

In principle, for the housing contract, the identity of the lessor and the tenant, the duration of the lease contract, the monthly rent and the anticipated charges, the method of payment of the rent, the renewal of the lease as well as the payment of the security deposit must be mentioned in the contract. The latter is a sum of money given to the owner when the contract is signed, the amount of which must not exceed one month’s rent. When signing the contract, both parties agree to respect all the clauses. To this end, once the contract is concluded, the lessor is obliged to make the building available to the lessee. The latter undertakes to pay the rent according to the conditions mentioned in the contract.

Commercial Lease Agreement

The commercial lease contract establishes the contractual relationship between the owner and the lessor for commercial use. In this case, the tenant uses real estate to carry out an activity in various fields. A commercial lease contract contains the same elements as a residential lease contract and determines the activity carried out by the tenant. This contract may also provide for penalties in non-compliance with the conditions provided for. For more security, it is strongly recommended that the drafting of the commercial lease be entrusted to a lawyer or a notary.

Furthermore, at the beginning of the lease, the landlord may require key money or an entrance fee, which is a sum paid by the tenant as compensation. The landlord sets the amount. This is a specific clause in the commercial lease contract.

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Professional Lease Contract

In the contract of lease for professional use, the tenant is a company. The building will be used as premises for the company carrying out a non-commercial activity. If you are a professional, you must also use this type of lease agreement. This lease is also subject to certain obligations. According to article 57 A of the law n°86-1290 of December 23, 1986, which aims to promote rental investment, the acquisition of social housing and the development of the land supply, the minimum duration for a lease for professional use is 6 years. Once the contract has expired, it can be renewed. In addition, the contract can be terminated with 6 months’ notice.

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