Business Lease

A business lease is a rental contract for premises in which the tenant is engaged regulated liberal (accountants, doctors, veterinarians, architects, lawyers, etc.) or unregulated (management consultants, consultants, etc.).

The professional lease contract must be written. It may be drafted by the parties themselves, by a notary or a lawyer. If this lease is concluded for more than 12 years, it must be drawn up by a notary.

Where the landlord and the tenant (who must be a liberal professional) agree, they may voluntarily place the commercial lease contract under the commercial lease. In that case, those are all the rules of the commercial lease applicable: 9-year lease term, payment of a eviction allowance by the owner in the event of non-renewal, etc.).

The duration of the professional lease is fixed at 6 years minimum.

At the end of this 6-year period, the professional lease is automatically extended for the same duration: it is said that it is tacitly renewed.

The content of the professional lease is freely determined by the parties. It usually includes the following:

• Information on the identity of the parties
• Description of the room and, in some cases, of the ancillary rooms
• Term of the lease which is at least 6 years
• Rent amount, conditions of payment and revision of rent
• Burden-sharing
• Security deposit
• Respective obligations of each party (payment of rent and free premises)

The owner (lessor) must attach the following 2 diagnostics to the lease agreement:

• Energy Performance Diagnostic (EDP)
• Natural, Mining and Technological Hazards (ERNMT))

A state of play at the entrance and exit of the tenant shall be established in one of the following ways :

• By the landlord and the tenant, amicably, and in a contradictory way, that is to say that each party is able to present its point of view.
• By a Commissioner of Justice, at the initiative of the owner or tenant. The costs are shared by half between the tenant and the owner.

The inventory must be attached to the rental contract or kept by each of the parties.

If an inventory is not established, the tenant is presumed to have received the premises in good condition of rental repairs. This includes routine maintenance and minor repairs at the tenant's expense throughout the term of the lease (e.g. maintenance of the room's ceilings, walls and partitions, water pipe joints, etc.).

The amount of rent is freely fixed by the parties. Its payment terms (monthly, quarterly, at the beginning or end of term) are specified in the professional lease contract.

Rent revision is not required by law but the contract may provide for revision on the basis of an index, for example, the tertiary activity rent index (ILAT) or the construction cost index (CCI).

If nothing is specified in the lease agreement, the amount of rent remains the same throughout the lease.

The payment of a security deposit is not obligatorybut the lease contract may foresee that the tenant must pay one. In this case, the amount is freely determined by the parties.

This amount is refunded to the tenant when he leaves the premises if he has fulfilled all his obligations (for example, payment of rent or certain repairs).

The distribution of charges, taxes and taxes between the owner and the tenant is freely defined in the contract.

Where the contract does not specify the burden sharing, the owner must pay the property taxes and insurance costs of the building.

Very often, the lease provides that major works are the responsibility of the owner.

In the business lease, the owner is engaged obligatory for six years. After this period, he can inform the tenant of his intention not to renew the contract. He must then respect 6 months' notice.

For his part, the tenant can break the contract at any time. He must then notify the owner of his intention to leave the premises within a 6-month period of notice.

Such notifications shall be made:

• Either by registered letter with request for notice of receipt
• Either by an act of a commissioner of justice (formerly an act of bailiff).

The tenant may sublease its lease, unless prohibited by the lease agreement. He must inform the owner.

The principal tenant remains liable to the landlord. He or she must ensure that the lease agreement is properly respected by the sub-tenant and that the sub-tenant actually pays the rent to the landlord.

The tenant can also give up freely its professional lease unless prohibited by the lease agreement.

The lease may provide for special conditions for the assignment of the professional lease (for example, prior agreement of the lessee's successor by the lessor or the drafting of a notarial act).

The tenant must then inform the owner of the assignment of the professional lease.