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Renewal of the Lease Agreement

A lease contract is a document signed between the landlord and the tenant, which determines the period in which the tenant will be able to enjoy the property in question by stipulating a rent to be paid. Lease contracts have a defined minimum duration, differing depending on the type and conditions of each party.

There are three types of lease contracts: the most common model is the rural lease contract, in which the purpose is to use the leased property for agricultural activities. The commercial lease contract refers to leasing for commercial purposes, such as leasing an establishment to open a store or a restaurant. We also have the housing lease contract which, as the name suggests, serves for housing purposes.

In this article we will talk about the different lease contracts, and their renewal.

How does renewing a lease contract work?

First, it is important to clarify the definition of a lease renewal, to put it into context: it is a document through which the tenant can extend the lease term of the establishment, stipulating with the landlord the time they intend to occupy the property. . Basically, it is an update that is carried out simply, unless there are new requirements from either party. It may happen, for example, that the landlord wants to increase the amount of rent for the tenant to pay. Therefore, some clauses of the contract can be changed or added, depending on the needs and established agreement.

And how it works?

The value of the lease must be confirmed, and a negotiation must be carried out between the lessor and the lessee, in which, in the document, a period of validity and change in values must be established to replace losses arising from inflation and also from the appreciation of properties. .

In case of non-compliance with the contract, a fine is defined to be paid by the party that did not comply with what was established, whether it be a situation of delay in paying the rent, or even terminating the contract before the expected time.

Renewal of rural lease contract

The rural lease contract includes the land of the person who leased the space, non-forest vegetation and buildings for agricultural purposes.

This contract includes the identification of the parties involved, as well as the identification of the space for lease. It is stipulated that the minimum period for concluding a rural lease contract is 7 years and can be renewed for the same period, if there is agreement between both parties.

According to the New Rural Leasing Regime (NRAR), the renewal of contracts is the responsibility of the parties, without mandatory rules, granting contractual freedom to those involved.

Commercial lease renewal

The commercial lease contract must be issued in three units, one for the landlord, one for the tenant and one for the tax office. A usage license granted by the City Council within the last eight years is also required. The contract has a duration of 5 years, and must be renewed at the end of this period.

Among the documents required for this contract, the following stand out: the citizen card, the commercial registration certificate and the user license.

Renewal of housing lease contract

The rental contract must be written on paper and drawn up in three copies: one for the landlord, one for the tenant and one for the tax office, no later than 30 days after the parties formalize the contract. All parties are obliged to sign the contract.

The housing lease contract must include the identification of the parties, as well as the location of the leased property. The date on which the contract was signed as well as its duration and the tenant's pay slips must also be included in the document.

This contract can be concluded for a fixed or indefinite period, with the minimum duration of a fixed-term contract being one year.

It is stipulated that, after the first renewal of the housing lease contract, the lease will have an indefinite duration. If there is no response from any of the parties involved, the contract is concluded with a fixed term for two years.

And how does the automatic renewal of a lease contract work? The contract can be automatically renewed, as long as there is a clause in the contract that establishes this purpose.

Read full article here!

Source: Imovirtual


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