By Spanos Theodoros · The lease of a property is one of the most common contractual relationships, whether it concerns a residence or commercial premises. Although it is often regarded as a simple agreement between a landlord and a tenant, the terms agreed upon at the outset can determine their relationship for several years.
The amount of rent is only one part of the agreement. The lease term, security deposit, rent adjustments, allocation of expenses and repairs, the possibility of early departure, and the consequences of a breach are matters that must be clarified before signing.
Of particular importance from the outset is the use of the property. A residential lease and a commercial lease are not treated in the same way, and the actual use of the property must be accurately reflected in the agreement. In commercial leases, particular care is required when the tenant intends to invest substantial sums in fitting out the premises or to link the operation of their business to that specific property.
LEGAL NOTE
For leases of a primary residence, a minimum term of three years generally applies, even where a shorter term has been agreed. Commercial leases concluded under the current legal framework are likewise subject to a minimum term of three years.
However, the lease term is not the only matter requiring attention. The agreement must clearly specify what happens if the tenant wishes to leave before the agreed expiry date, when and under what conditions the agreement may be terminated, and what financial consequences early termination may entail.
The same applies to the security deposit. Its amount, the purpose for which it is paid, and the conditions for its return or retention must be clearly set out in the agreement. Similar clarity is needed regarding common charges, repairs, defects, any works the tenant is permitted to carry out, and the condition in which the property must be returned at the end of the lease.
In practice, these are often the matters that give rise to the most serious disagreements. Where the agreement does not provide a clear answer, a relatively simple issue can develop into a significant financial or legal dispute.
A properly drafted lease agreement should not merely provide for how the tenancy begins. It should also anticipate what will happen if matters do not proceed as agreed.
For this reason, using a generic or standard-form template is not always sufficient. Every lease has its own particular characteristics and, especially in commercial leases or agreements involving substantial financial value, the terms must be tailored to the specific property and the actual needs of the parties.
The lawyer’s role is more important before the agreement is signed than after a dispute has already arisen. Legal review makes it possible to identify ambiguous or problematic terms in good time, examine the obligations assumed by each party, and address the most significant risks contractually.
A lawyer can also participate in negotiations, propose terms that better serve the client’s interests, and draft an agreement that is not merely formally correct but also operates effectively when a real problem arises.
In the event of a breach of the lease terms, the response must be timely and follow the lawful procedure. One of the most common situations is late payment or non-payment of rent. If the debt remains unpaid, the landlord may, depending on the circumstances and statutory requirements, serve a formal extrajudicial notice and subsequently seek recovery of possession of the property and collection of the amounts owed through the courts.
A problem may also arise where the tenant uses the property for a purpose other than that agreed, or in a manner that causes substantial damage or interferes with its agreed use. Likewise, depending on the terms of the particular agreement, unauthorised subletting or granting another person use of the property, as well as carrying out unapproved works or alterations, may constitute a breach.
LEGAL NOTE
Not every breach, however, has the same legal consequences. In each case, the nature and seriousness of the breach, the specific terms of the lease agreement, and the applicable legal framework must be examined in order to determine the appropriate course of action, ranging from a formal extrajudicial demand for compliance to termination of the lease and, where the statutory conditions are met, legal proceedings to recover possession of the property or claim any outstanding amounts and damages.
In any event, the landlord must not attempt to evict the tenant personally, for example by changing the locks or arbitrarily preventing access to the property. The protection of the landlord’s rights must be pursued through lawful procedures.
This is precisely where a lawyer’s intervention is important: to assess the breach, review the agreement and available evidence, and select the most appropriate and effective legal action, without taking steps that could ultimately prejudice the landlord’s position.
SF Legal Law Firm
SF Legal provides legal support to landlords, tenants, and businesses in the review, negotiation, and drafting of lease agreements, as well as in resolving disputes that may arise during the tenancy or upon its termination.
Proper legal preparation of a lease can prevent a far more complex dispute in the future.
