Commercial lease

The 12 kap jordabalken (1970:994), commonly known in swedish as hyreslagen governs the rental of commercial premises. The tenant is the party renting the premises, and the landlord is the party leasing out the premises.

Agreements and lease term

A commercial lease agreement can be established both through written documentation and verbally. Nevertheless, a written agreement is preferable as it demonstrates the terms agreed upon by the parties involved.

Commercial lease agreements are often made for a predetermined period. For a fixed-term lease, the tenant and landlord have to abide by the specified and stipulated lease term. The lease must be formally terminated to cease. Alternatively, a commercial lease may span over an indefinite period, continuing from a specified date until terminated by either party.

Termination of lease

A lease relationship may be terminated either by a notice of termination for vacating the premises or for a change in terms. The notice period depends on the duration of the lease agreement. If the landlord wishes to terminate the agreement with the tenant, the tenant must be informed of the reasons for the termination. 

The notice must also include information about the tenant’s right to refer the dispute to the Rent Tribunal for mediation. Should the landlord fail to properly execute the termination, the notice will be deemed ineffective against the tenant.

If the tenant, as a result of the termination, wishes to seek damages, they must apply for mediation. The application must be submitted to the Rent Tribunal within two months; otherwise, the tenant’s right to have the claim adjudicated by a general court is forfeited.

Security of tenure

Unlike residential tenants, commercial tenants do not possess direct security of tenure, meaning that they do not have an automatic right to renewal of the lease agreement. Instead, commercial tenants have an indirect security of tenure.

This indirect security of tenure becomes effective after the tenant has occupied the premises for nine months. It implies that the tenant must vacate the premises at the end of the lease term unless the parties agree to a new lease. 

In certain cases, the tenant may be entitled to compensation for economic losses resulting from the termination of the lease. The indirect security of tenure also includes a right to a reasonable postponement of the vacating date. Such an application must be submitted to the Rent Tribunal before the lease term expires.

Security of tenure may be waived through a specific agreement between the landlord and tenant. Such an agreement generally requires approval from the Rent Tribunal.

Rights and obligations

The tenant is responsible for the following:

• Paying the rent punctually, 
• Repairing damages they have caused, 
• Maintaining the premises in a clean condition, 
• Returning the premises in the same condition as they were leased, 
• And paying for utilities such as electricity, gas, and water, unless included in the rent.

We can assist you

For times when you encounter a dispute regarding your commercial lease with your landlord or tenant, please feel free to contact us at Advantage law firm. 

We can also assist in drafting a clear lease agreement to prevent disputes related to the lease. Additionally, we can represent you in court. 

Contact us for further assistance.