Renting a Commercial Premises
Renting a commercial premises is regulated in Chapter 12 of the Swedish Land Code, more commonly known as the Tenancy Act. The person who rents a premises is called the tenant, while the person who lets out the premises is called the landlord.
Agreements and Rental Period
A commercial lease agreement can arise both through a written document and orally. A written agreement is, however, to be preferred, because it shows what the parties have agreed upon. Commercial lease agreements are often drawn up for a predetermined period. With a fixed-term agreement, both the landlord and tenant are bound by the specified rental period. However, the agreement must still be terminated in order to cease. A commercial lease agreement can also be entered into for an indefinite period. Such an agreement runs from a certain point in time until one of the parties terminates the agreement.
Termination of the Tenancy
A tenancy can end both by termination for relocation and termination for change of conditions. The notice period depends on the length of the lease agreement. If the landlord wants to terminate the agreement with the tenant, the tenant must be notified of the reason for the termination. The termination must, among other things, include information to the tenant about the right to refer the dispute to the Rent Tribunal for mediation. If the landlord does not make a correct termination, the termination is ineffective against the tenant. If the tenant, as a result of the termination, wants to apply for 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 damages issue examined in a general court is forfeited
Security of Tenure
A commercial tenant, unlike a residential tenant, does not have direct security of tenure, which means that the commercial tenant does not have an automatic right to extension of the lease agreement. Instead, the commercial tenant has an indirect security of tenure. The indirect security of tenure begins to apply after the tenant has rented the premises for nine months. The meaning is that the tenant must move at the end of the agreement term, unless the parties agree on a new agreement. In some cases, the tenant has the right to compensation for the economic loss that arises as a result of the tenancy ending. The indirect security of tenure also includes a right to reasonable postponement of the relocation. Such an application must be submitted to the Rent Tribunal before the lease agreement has expired. The security of tenure can be contractually waived through a specially prepared document between the landlord and the tenant. Such an agreement usually requires approval from the Rent Tribunal.
Rights and Obligations
The tenant is responsible for paying the rent on time, repairing damage that they themselves have caused, keeping the property clean, returning the premises in the same condition as it was rented, and paying the electricity, gas, and water bills for the premises in cases where this is not included in the rent.
We Can Help You
If you end up in a tenancy law dispute with your landlord or tenant, you are welcome to contact us. We can also assist you in drawing up a clear lease contract that prevents disputes about the tenancy relationship from arising. We can also assist you in court. Contact us and we will help you further.
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