As Entrepreneurs often require office space, retail areas, and warehouses for storing goods or land plots for conducting business activities, they frequently find themselves dealing with property lease agreements.
Thus, a lease agreement stands as one of the classic, most widespread, and actively utilized types of remunerative civil-law contracts. Under the terms of this agreement, an entrepreneur interacts with the owner of the premises (the lessor).
The owner (proprietor) of the property in such agreements is referred to as the "Landlord" or "Lessor," while the party receiving this property for temporary use, whether an entrepreneur or any other natural or legal person, is termed the "Tenant" or "Lessee."
The establishment of contractual relations between the Landlord and the Tenant is regulated by Articles 540-564, 573-594 of the Civil Code of the Republic of Kazakhstan.
Moreover, what distinguishes lease agreements is the necessity to consider not only civil legislation but also the norms of tax, labor, and land law when working with them. It's essential to pay attention to the subject of the lease and its intended use, as well as whether the lease agreement will be long-term or short-term and whether registration with the authorities or notarization is required. Not all entrepreneurs can independently consider all possible risks when entering into a lease agreement, as numerous questions arise during the negotiation process:
- What is the term of the lease agreement, and what is the procedure for leasing the property?
- How to determine the order of rental payments, and can these expenses be deducted?
- Can the entrepreneur sublease the property to another party?
All these important aspects and conditions reflected in the lease agreement enable the entrepreneur to regulate relations with the property owner to minimize future risks.
Therefore, entrepreneurs must approach lease agreement negotiations with maximum responsibility. Specifically, they should verify the property's title documents to ensure that they are entering into a lease agreement with the rightful owner and avoid fraudulent activities. Careful inspection of the leased premises is also crucial to prevent encountering hidden defects during subsequent use.
Additionally, many property owners include significant penalties for early termination of lease agreements. Considering the realities and fluctuations in the market situation, not every entrepreneur may be capable of fulfilling such obligations in the future, potentially leading to legal disputes between the parties.
Our legal experts can assist you not only in lease agreement tailored to the specifics of the premises and the entrepreneur's activities but also in protecting your interests and minimizing the risks related with potential loss of the leased property. We can also analyze and mitigate the risks with your draft of a lease agreement.
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