Our practical sheets

Our practical sheets

The commercial lease

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Traders, industrialists or craftsmen who rent premises to carry on their professional activities benefit from the status of commercial leases.

The commercial lease, governed by articles L 145-1 et seq. of the Commercial Code, guarantees the tenant commercial property: the tenant benefits from a right to renew his lease, or from an eviction indemnity, which is equal to the value of the business, increased by the moving expenses.

The commercial lease is concluded for a period of at least 9 years, and diagnostics are annexed to it(Sheet 10-2: mandatory diagnostics for rentals). It is tacitly renewed.

Note: it is possible to set up a special lease, the duration of which cannot exceed 3 years when the lease is concluded. This short-term lease is not subject to the rules of the commercial lease.

The amount of the rent can be fixed. It can also be based on the tenant's turnover. A "door fee" or "entrance fee" is sometimes charged to the tenant by the lessor upon entering the premises.

For commercial leases entered into since September 1, 2014, an inventory of fixtures must be drawn up upon taking possession of the premises when they are returned, jointly and amicably, or failing that, by a bailiff, at a cost shared equally between the lessor and the lessee

It is useful to draft the clauses of the lease relating to charges and rental repairs precisely.

  • - For leases entered into before June 20, 2014, the law did not provide for a list of recoverable expenses or rental repairs, and this subject is the subject of frequent litigation.
  • - The lease concluded since June 20, 2014 must mention the charges, taxes and duties, and their distribution between lessor and tenant. An annual summary must be established. Since a decree of November 3, 2014, the list of charges and taxes that cannot be charged to the tenant is specified.

In the general case, the tenant can give notice for the expiration of each three-year period, that is, after 3 years, 6 years, 9 years. The notice is delivered by bailiff, 6 months before the expiry date.

The lessor can only give notice for the end of the lease, 6 months in advance, and by bailiff. If the landlord does not offer to renew the lease, he must pay the tenant an eviction indemnity, unless the tenant has committed faults that justify the non-renewal of the lease.