Professional Lease: What Conditions to Respect?

Do you have premises for professional use that you would like to rent out?

Note that the professional lease is neither a commercial lease nor a craft, industrial or agricultural lease. It can only be concluded with certain categories of professionals.

Discover the conditions to be respected when concluding a professional lease?

1. The Professional Lease Exclusively for the Liberal Professions

Who is the Professional Lease Intended for?

The professional lease can be concluded between a lessor and a tenant carrying out a liberal professional activity, regulated or not.

According to Law No. 86-1290 of December 23, 1986, this type of lease covers the professions of architect, accountant, lawyer, doctor, and all professions taxed under non-commercial profits (BNC).

It is therefore a rental contract subject to a specific activity.

Professional or Commercial Lease: what is the difference?

The professional lease cannot in principle accommodate a commercial activity.

However, you can authorize the tenant exercising a liberal profession to conclude a commercial lease on the premises of his activity.

For this specific part, commercial lease law applies.

Is a Mixed Lease Possible?

If your premises have a part that can be used as a place of residence, the tenant can decide to reside there as their main occupation. It will then be necessary to sign a mixed lease indicating the professional and residential characteristics of the building.

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2. What Contractual Clauses for a Professional Lease?

The professional lease is obligatorily written but remains free in its form. You can contact a notary to draft the clauses or get assistance from a real estate law professional to avoid unpleasant surprises.

How to Set the Amount of Rent?

The professional lease contract provides for the amount of the rent as well as the terms of payment, freely negotiated by the two parties.

Do you want to change the amount of the rent during the lease? You must provide an indexation clause fixed on a benchmark index.

Distribution of Charges and Security Deposit

Your lease contract must provide for the terms and conditions for the distribution of charges, in order to prevent any subsequent dispute. Also, plan the distribution of work if you plan to transform the premises.

Overall, it is essential to anticipate the sources of litigation in order to protect yourself legally in the event of a lawsuit.

This is why it is in your interest to negotiate a security deposit that will allow you to compensate for your tenant’s breaches of contract.

The Duration of the Professional Lease

The professional lease has a duration of at least 6 years, without a maximum being provided for by law. At the end of the lease period, it is tacitly renewed for an equivalent period, provided that an express clause so provides.

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3. Renewal, Assignment and Termination of a Professional Lease

I. Can a Professional Lease be Renewed?

Unlike the commercial lease, the professional lease does not give the right to renewal.

Have you concluded a lease for a period of 8 years? You can decide as a landlord to end the rental contract without any compensation at the end of the lease period.

If your tenant wishes to renew the lease, this is the right time to renegotiate the clauses of the lease contract, and in particular the amount of the rent.

The lease may be tacitly renewed in the sole case where a tacit renewal clause is expressly mentioned in the contract.

II. How to Terminate a Professional Lease?

The tenant may at any time break the Tribeca luxury apartments for rent contract provided that he sends you a letter of termination of the professional lease containing a notice period of 6 months.

Conversely, the lessor can only terminate the lease at the end of the contractual period.

III. A Professional Sublease: is it possible?

If no clause prohibits it, your tenant may assign or sublet your business premises. It only needs to notify you of this transaction.

You can provide for the management of a professional sublease by indicating the specific terms in the initial lease: duration of the sublease, your prior agreement, or the drafting of a notarized contract, for example.

IV. What about the Precarious Professional Lease?

The precarious professional lease, or derogatory lease, is wrongly considered a lease for professional use. The precarious lease is a short-term commercial lease that adapts to certain seasonal activities (maximum 36 months).

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