TENANCY

Lease Residential lease Lease on business premises Provisions of the Act on Residential Leases are generally mandatory to the benefit of the tenant Lease on business premises

AGREEMENT ON RESIDENTIAL LEASE Non-fixed term (presumption) or fixed term In writing Adjustment of unreasonable contract terms Security maximum 3 months’ rent

Agreement on the rent: Rising the rent later: Freedom of contract Rent must be reasonable Rising the rent later: The contract may allow the lessor unilaterally revise the rent The condition must be detailed enough for the rise to be objectively defined and foreseen Rising the rent by a mutual agreement Rising the rent by giving notice

Paying the rent: Advance rent: Freedom of contract If nothing agreed, the rent must be paid on the second day of the rent payment period Advance rent: Maximum 3 months’ rent

Maintainance of the residence: Lessor is generally responsible for the costs of repair (normal wear and tear) Tenant’s responsibility is to notify of the defects found Tenant is responsible for a good care of the residence

Use of the residence: Main rule: Secondary lease: Sublease: Use for the tenant and his/her family Secondary lease: Tenant may lease the residence to a third party only on the lessor’s consent If the tenant must move from the region because of work or studies for no more than two years, the lessor can’t forbid the secondary lease Sublease: Tenant has the right to assign maximum half of the apartment to another person

Termination by notice: Notice must be given in writing and verifiably Fixed term lease: Terminating by notice is possible only exceptionally Non-fixed term lease: Lessor’s period of notice is 3/6 months, must give a reason Tenant’s period of notice is 1 month, no reason required

Court may declare the given notice ineffective on the tenant’s demand, if there is no justifiable reason for the termination and it is unreasonable, or its reason has been rising the rent to an unreasonable level => Tenant has the right to claim damages

Rescission Notice in writing and verifiably Lessor may rescind: Neglect of paying rent Illegal transfer of leasehold Violating the contract in the use of the residence (warning first) Tenant may rescind: Residence is not available according to the contract The condition of the residence is no in accordance with the contract

Date of vacating: Tenant must vacate half of the residence the next working day that follows the date of termination of the lease contract On the following day the whole residence must be vacated Execution by a court ruling

LEASE OF BUSINESS PREMISES No maximum amount of the security Contractual freedom as regards the revising procedure of the rent No maximum amount of the advance rent Periods of notice: 3 months (lessor), 1 month (tenant) Date of vacating the premises is the next working day that follows the date of termination of the lease contract