Our CENTURY 21 Auteuil Immobilier and Auteuil Seine offices, located in Paris’s 16th arrondissement, will explain the rules you need to know before closing the deal.
Under what circumstances can a special lease be entered into?
A short-term lease, also known as a temporary lease, is used to rent commercial space for a limited period. It is suitable for testing a business concept, opening a pop-up store, setting up a showroom, assessing the potential of a location, or occupying a space before committing to a longer-term lease.
What conditions must be met for a special lease to be valid?
The parties’ intent must be clear: the landlord and tenant agree to deviate from the provisions of the Commercial Lease Act. This statement must be included in the lease agreement.
The lessee must take possession of the premises upon the execution of the lease, in accordance with Article L145-5 of the Commercial Code.
What is the maximum term of a special lease?
The total term of the lease or successive leases must not exceed 3 years. Thus, a special-case lease entered into for 12 months may be renewed, as long as the maximum term of 36 months is not exceeded.
Good to Know : There is no minimum requirement. For example, a retailer can test the waters by opening a store during the Christmas season, from November through January. They sign a 3-month temporary lease to assess the commercial space’s potential without committing to a multi-year lease.
How do you set the rent and utilities in a special lease?
The rent amount is freely agreed upon between the landlord and the tenant. The lease agreement must specify the utilities, any required repairs, the security deposit, the allocation of expenses, and the payment terms. This clarity helps prevent disputes, especially in an older building or a mixed-use commercial space.
Is an inventory required for a special-case lease?
Yes. A move-in inspection report protects both parties. It describes the condition of the premises, the fixtures and equipment, the meters, and any work that may need to be done. A new move-out inspection report facilitates the return of the security deposit and minimizes disputes between the landlord and the tenant.
Can a special lease be terminated before it expires?
In principle, a special-case lease terminates on its scheduled expiration date. Early termination is possible if a clause permits it or if the landlord and tenant reach an amicable agreement.
It is therefore best to make provision for this termination when drafting the contract, especially if the business is dependent on a particular season, construction work, or an administrative permit.
