According to the current legislation, a natural or legal person who owns non-residential real estate can dispose of it at his discretion, including renting it out.
According to rent non-residential premises and what should the owner know about? Let's try to figure it out.
What does it mean to rent a non-residential premises
lease of premises is an agreement in which the owner transfers the property for temporary use on the basis of a lease agreement. The document specifies the procedure for paying rent, the parties' responsibilities, and other features of cooperation. As a rule, such agreements are concluded between legal entities or individual entrepreneurs. By the way, if you are thinking about buying real estate, we recommend that you contact us professional luxury real estate agency THE Capital.
Peculiarities of legislation
The legislation of Ukraine establishes some restrictions on the leasing of non-residential and residential real estate. In particular, non-profit organizations that pay a single tax have the right to rent premises subject to certain restrictions, according to Article 291.5.3 of the Tax Code:
- Residential premises should not be more than 400 sq.m.
- Non-residential premises should not exceed 900 sq.m. Non-residential includes offices, basements, retail spaces, warehouses, and shops.
Before renting out non-residential premises, it is necessary to take into account that the entrepreneur has the right to sign a sublease. If it is planned to rent space in excess of the established limits, this violates the rules of the tax code, and the received income of such a businessman is taxed on a general basis.
See also: How to rent a non-residential premises?
You can rent or sublease only the object that was registered and rented in accordance with the law. Unfinished or not put into operation premises cannot be used.
Renting of non-residential premises: points that the landlord needs to consider
The first thing a landlord thinks about is how to find a conscientious tenant. You can do this yourself, but it is safer to contact a professional realtor of our agency. In addition, experienced lawyers are ready to advise on all issues.
See also: Renting an apartment: how to write an ad correctly?
When the owner is ready to rent non-residential premises, he should discuss the following points in advance:
- For what purpose is the premises needed, what does the tenant plan to do on its territory. This will make it possible to determine exact sanitary, urban planning and fire prevention standards. Particularly strict conditions are usually put forward for premises in multi-storey buildings.
- Do you need repairs, re-planning in accordance with the features of operation? If there is a need to carry out work, they will be organized within the stipulated time. Who will pay for repair and construction activities and in what order they will be carried out, is specified in the lease agreement - this clause is part of it.
How to rent non-residential premises: what is specified in the contract
If the quality of the premises and the rent satisfy the tenant, it is necessary to proceed with the conclusion of the contract. Ideally, the document should be drawn up in our real estate agency with the participation of an experienced lawyer. Before handing over non-residential premises, after signing the contract, you should check that it contains the following information:
- Description of the object with exact location and its market value.
- Lease terms, terms of conclusion and termination of the contract.
- There must be information on whether the tenant has the right to sublease the premises. If so, under what conditions.
- It is prescribed under what conditions the rented premises are planned to be used.
- The amount of rent, which is indicated in a non-standard (for residential premises) format, is the price of 1 square meter. meter, based on the market rent value valid in Kyiv and the Kyiv region. The lessor's right to change the rent price and its indexation is also prescribed.
- Peculiarities of repayment of utility bills - who pays, in what order, terms. The same point includes the procedure for paying for the Internet.
Leasing of non-residential premises is carried out with a mandatory discussion of responsibility for late rental payments and other violations of the terms of the contract.
The procedure for terminating the lease agreement
The lease agreement must contain a clause on the order in which it should be terminated. This will allow the property owner and the tenant to avoid legal proceedings and monetary losses. If for some reason this issue was not recorded in the document, the legislation interprets such situations as follows.
- When both parties agree to terminate the contract early, its termination occurs without claims and additional costs. The party-initiator must give notice of termination in advance - at least three months in advance. After that, an appropriate agreement is concluded, which will be the documentary basis for the liquidation of the contract.
- The agreement is terminated through the court at the initiative of any of the parties in the event that the partner party has repeatedly violated the terms of the agreement. Be prepared for the fact that the duration of such an agreement will be long and financially expensive, since in the early stages of legal proceedings all costs fall on the side of the initiator.
Leasing of non-residential premises requires prior preparation and legal knowledge, including current legislation. With the right approach, the lease will be mutually beneficial for both the lessor and the lessee. If necessary, you can contact our lawyers for all questions. Was the publication interesting and useful? Subscribe to our real estate blog updates and get the latest posts from THE Capital real estate agency.
