Commercial leases are one of the main tools used by companies to acquire a work area. In Italy, these contracts are governed by the Civil Code and provide for different types of duration. In this article, we will analyze the characteristics of commercial leases and the different renewal or termination options, offering a complete picture of the current situation in Italy
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Table of Contents:
What are commercial leases
Commercial leases are legal instruments that govern the lease of properties used for commercial or productive activities.
In Italy, these contracts are governed by the Civil Code and provide for some specific characteristics. First of all, the rent is established based on the duration of the contract and the location of the property. In addition, it is possible to sign different types of leases, such as fixed rent, variable rent or rent with a dry coupon. It is important to underline that, if the rent is not paid, the landlord has the right to terminate the contract and request the release of the
property.
The duration of commercial leases
The duration of commercial leases in Italy is governed by the Civil Code and includes different types. In particular, the fixed-term contract may have a maximum duration of 6 years, while the indefinite contract has no time limits. However, it is important to point out that fixed-term contracts can be renewed for a maximum of 6 times, while those for an indefinite period can be terminated at any time, with at least 6 months’ notice. In addition, in the case of fixed-term contracts, the landlord has the right to refuse the renewal, but only if there are legitimate reasons
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The different types of commercial leases
There are different types of leases for commercial use in Italy, including the fixed rent contract, the one with a variable rent and the one with a rent with a dry coupon. The fixed-fee contract involves the payment of a monthly fee established in advance, while the variable fee contract involves a change in the fee based on market trends. The rent contract with a dry coupon, on the other hand, involves the payment of a fixed fee, but with the application of a fixed tax of 21% on the rent itself. In addition, there are also other types of contracts, such as a loan contract, which involves the concession of the property without paying a fee, but only for
a limited period.
How to renew or extend a commercial lease
To renew or extend a lease for commercial use, the landlord must submit a written request to the landlord at least six months before the contract expires. In case of no response from the landlord, the contract is presumed to be renewed for a duration equal to the previous one. However, the landlord has the right to refuse the renewal only for legitimate reasons, such as the recovery of the property for personal use or the need for renovation. In addition, it is possible to extend the contract only once, for a maximum duration of 6 years. In any case, it is essential that the request for renewal or extension be made in writing and respects the deadlines
set by law.
How to Terminate a Commercial Lease Agreement
The termination of a lease for commercial use can take place in several ways. In the event of a default on the part of the tenant, for example due to non-payment of the rent, the landlord can terminate the contract and request the release of the property. However, it is important to point out that, to be legitimate, the resolution must be carried out formally, through a letter of formal notice or judicial action. In addition, the tenant also has the right to terminate the contract, for example in the event of a lack of maintenance of the property by the landlord or serious structural defects. In any case, the resolution must be made in compliance with the regulations established by law and may result in the payment of penalties or the return of the deposit
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In conclusion, commercial leases represent a fundamental tool for companies that intend to acquire a work area. However, it is important to know the different types of contracts, their duration and the options for renewal or termination, to avoid possible disputes. The correct application of the regulations established by law can guarantee an effective and transparent management of these contracts
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