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The Clauses of a Lease: Obligations and Specificities


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    The Clauses of a Lease: Obligations and Specificities

    What are the different clauses of a lease?

    In this article, DECORDIER immobilier Thonon details the important elements that make up a lease as well as the mandatory clauses and certain specific clauses that can be notified in a rental contract. Signing a lease is a key step in the field of real estate rental to ensure a peaceful rental relationship.

    A lease is a formal contract by which one party (the lessor) agrees to make a property available to another party (the tenant) in exchange for rent. This contract, often called a "rental contract", governs the relationship between the tenant and the lessor and specifies their rights, responsibilities and obligations. DECORDIER immobilier Thonon lists for you the main clauses of a lease, the obligations that arise from it, and some specificities to know.

    1° -  The Essential Clauses of a Lease

    A lease generally includes several clauses that are essential to properly framing the contractual relationship between the lessor and the tenant, whether it is a rental for residential use or commercial premises:

         1. The identity of the parties: The lease must clearly identify the lessor and the tenant, indicating their names, addresses, and contact details. If the property is managed by a rental manager, its contact details must also be indicated. This makes it possible to stipulate who is involved in the contractual relationship.

         2. The description of the premises: The contract must specify the nature of the property rented (apartment, house, office, commercial premises, etc.), its surface area and any outbuildings (garage, cellar, garden), and the full address. A detailed description as well as the specific characteristics of the property must be notified.

         3. The duration of the lease: Depending on the type of lease (residential lease, commercial lease, etc.), the minimum duration is often regulated by law. For example, for an unfurnished rental, the minimum duration is generally 3 years if the lessor is a natural person and 6 years if it is a legal entity. It is one year if the accommodation is furnished. The effective date must be indicated in the lease. The duration of the lease can also be determined with a start and end date.

        4. The amount of the rent and the payment terms: The amount, the terms (monthly, quarterly, etc.), the date on which it must be paid, as well as any possible revisions to the rent, must be defined. A revision clause allows the lessor to revise the rent periodically based on a reference index according to the law in force. It should also be noted that the last rent of the last tenant if it has been paid for less than 18 months must be stipulated in the lease.

         5. The security deposit: Generally required by the lessor, this amount serves as a guarantee in the event of damage or unpaid rent. It is refundable at the end of the lease, the amount of repairs made is deducted from the security deposit.

         6. Rental charges: These include expenses related to the maintenance of common areas, water, collective heating, etc. These charges may be fixed or subject to annual adjustment. It must be notified on the lease whether the charges collected are from a fixed amount or correspond to the tenant's actual consumption.

         7. Use of the accommodation: The usage clause indicates whether the property is rented for residential, commercial or professional purposes. In particular, it may influence the authorized use of the accommodation and the layout of the place.

         8. The nature of the work carried out: The work and amount of work in the accommodation are taken into account in the event of a lease renewal or since the last rental contract.

         9. The living area: This must be mentioned and justified by the Loi Boutin diagnosis. If the habitable surface area is not notified or is incorrect, the tenant can take legal action and claim a reduction in rent.

         10. Agency fees: In the event of rental by an agency and its rental manager, the rental fees and the ceilings for services invoiced to the lessor and tenants must be indicated on the lease.

    2° - Lessor's Obligations

    The lessor has legal obligations towards the tenant, which vary depending on the type of property rented; the nature of the property determines the specific provisions that must be notified in the lease:

         1. Provide decent housing in good condition: The housing must meet criteria of health, safety and minimum equipment (drinking water, heating, secure electrical installation).

         2. Carry out necessary repairs: Major repairs, such as those affecting the structure of the building or essential equipment, are the responsibility of the lessor.

         3. Ensure peaceful enjoyment of the accommodation: The lessor may not disturb the tenant's peace and quiet and must ensure that third parties respect this peace and their right to privacy.

         4. Maintain common areas (for apartment buildings): They must ensure the maintenance of common areas, such as corridors, stairs and elevators.

    3° - Tenant Obligations

    The tenant also has specific obligations:

         1. Pay the rent and charges on time: This obligation is fundamental, and non-payment may result in termination of the lease and eviction.

         2. Respect the rented property and take care of it: The tenant must maintain the property and carry out standard repairs (replacement of joints, boiler maintenance, etc.).

         3. Insure the accommodation: The tenant must take out home insurance covering rental risks (fire, water damage, etc.).

         4. Do not modify the premises without authorization: Major development work requires the written agreement of the lessor.

         5. Return the accommodation in its original condition: When leaving, the tenant must return the accommodation in the condition in which they received it, except for normal wear and tear due to time.

    4° -  Specificities and Special Clauses

    Certain types of leases may include specific clauses or specificities:

         1. Termination clause: This clause provides for the automatic termination of the lease in the event of a serious breach (unpaid rent, damage to the property, unauthorized subletting, etc.). It is often applied in the event of unpaid rent. It specifies the conditions under which the lease may be terminated before the normal deadline, but it may also include legal grounds for termination and required notice periods.

         2. Solidarity clause: In the case of shared accommodation, this clause commits each joint tenant to be jointly and severally liable for the payment of the entire rent, even if one joint tenant withdraws.

         3. Indexation clause: The rent may be indexed to a reference index, allowing for regular review (usually annually) based on inflation or changes in the chosen index (INSEE, ILAT, etc.).

         4. Right of first refusal: In some cases, the landlord may offer the tenant a right of first refusal to purchase the property if it is put up for sale.

         5. Works clauses: The lease may stipulate the types of work that the tenant is allowed to do and under what conditions. It may also notify the responsibilities of the landlord and tenant regarding maintenance and repairs.

         6. Subletting clauses: If the tenant is allowed to sublet part of the property, the terms and conditions must be specified in the lease.

         7. Guarantors: It is common for tenants to be asked for a guarantor when renting property by landlords. The guarantor can be a natural person or a legal entity and implies that this third party agrees to act as guarantor for the tenant in the event of non-payment of rent. This provides additional security for the landlord and can facilitate access to rental accommodation for the tenant.

         8. Specific usage clauses: For commercial or professional premises, clauses sometimes specify the authorized use of the property (type of activity) and the possibility of subletting or assigning the lease.

         9. Legal clauses: The list is not exhaustive, but some clauses are prohibited because they are abusive for the tenant. For example, imposing a means of payment by direct debit, or prohibiting tenants from hosting people such as friends or family, providing that the delivery or sending of receipts is the responsibility of the tenant, etc. These clauses are deemed null and void.

    5° - End of the Lease: Termination and Notice

    The end of the lease can result from several situations:

         1. Termination by the tenant: The tenant can terminate the lease by respecting a notice period of 1 to 3 months (depending on the type of lease). In tense areas, the notice period may be reduced.

         2. Termination by the lessor: The lessor may only terminate the lease in certain specific cases, such as the sale of the property, personal occupation or a legitimate and serious reason (for example, neighborhood disturbances).

         3. End of the lease by maturity: The lease ends naturally on the agreed date, unless tacitly renewed or formally renewed.

    Conclusion

    The clauses and obligations of a lease are numerous and varied. They aim to establish a balanced relationship between the lessor and the tenant, by guaranteeing the rights and duties of each. Knowing these elements well is essential to avoid disputes and guarantee a harmonious rental. Before signing, tenants and lessors must carefully read the lease contract, ask for clarification on the clauses that seem unclear to them, and ensure that their respective expectations and obligations are well understood and documented.

    A lease is much more than a simple legal document, it is the fundamental element that guarantees a successful rental. This is why DECORDIER immobilier Thonon advises you to entrust the rental management to a professional: Entrust us with your keys, we'll take care of the rest.

    Take advantage of our offer valid until the  21st of December 2024, for any new management contract, we offer you 3 months of management fees and 6 months of GLI (guarantee of unpaid rent). Manage and rent with DECORDIER immobilier.

    DECORDIER immobilier agencies can help you with your real estate project:
    - Thonon +33 (0) 4 50 72 31 95 / e-mail : thonon@decordier-immobilier.com
    - Evian +33 (0) 4 50 75 15 15 / e-mail : evian@decordier-immobilier.com
    - Grand-Baie : +230 268 2828 / e-mail : contact@decordier-immobilier.mu

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