Obligations of the lessor of commercial premises. What is worth knowing before investing in real estate?

What is commercial premises?

The characteristics of commercial premises are specified in the regulation of the Minister of Infrastructure of 12 April 2002 on the technical requirements that buildings and their location should meet. According to it, commercial premises are a part of a building:

  • containing one room or a complex of rooms,
  • separated by permanent building partitions

or an entire building that is not a dwelling, technical room or utility room.

Commercial premises It usually has a commercial purpose. It is used to conduct business, e.g. catering. However, it can also fulfill other purposes, e.g. cultural, sports.

Is it worth renting commercial premises?

There are various types of commercial premises on the market. They are classified according to their purpose. These include:

  • commercial and service buildings and premises, e.g. shops, pharmacies,
  • buildings and office premises,
  • buildings and production premises, e.g. production halls,
  • buildings and premises intended for short-term accommodation, e.g. hotels, guesthouses,
  • public buildings, e.g. offices, theatres, sports halls.

The wide range of this type of property offers many business opportunities. Is it worth renting commercial premises? It depends on many factors. You need to consider the business profile, the stage of development of the company and financial resources. Renting allows you to benefit from your business and optimize investment costs. It provides you with a fixed monthly rent, but it is associated with certain obligations.

To increase the profitability of the investment, it is good if the property is located in an attractive location, with extensive and modern infrastructure. The location can increase the commercial success of some businesses, especially beauty or hair salons.

What are the obligations of a landlord?

The obligations of the parties are specified in the lease agreement for commercial premises. It may be concluded for a period of:

  • specified,
  • indefinite.

The most important obligations of the lessor of commercial premises include:

  • Handing over commercial premises – this includes not only handing over the keys to the premises, but also ensuring the appropriate technical condition of the premises, including efficient installations and access to electricity. The premises should be in a condition suitable for the agreed use. If the parties have not specified this in the agreement, it must correspond to the characteristics and purpose of the premises for the duration of the lease.
  • Ensuring the right to use the commercial premises – maintaining it in appropriate condition throughout the duration of the contract.
  • Carrying out repairs of a major nature, including repairs to installations and structural elements. Minor repairs, such as replacing a light bulb, will be the responsibility of the tenant.

The obligations of the lessor of commercial premises correspond to his rights arising from the contract, i.e., among others, to:

  • Collection of rent – usually the tenant pays it monthly in advance, e.g. by the 15th day of each month. Due to the nature of the commercial premises, the rent is subject to indexation. Thanks to this, it will correspond to the actual value of the property, with any change in the purchasing power of money. In the agreement, this takes the form of an indexation clause. The basis for calculations is usually the index of growth in the prices of goods and services announced on the website of the Central Statistical Office.
  • Enforcement of additional fees – these include operating fees, such as electricity and water. The parties may also agree that these expenses will also include other costs, such as an appropriate portion of property tax.

The landlord and the tenant may freely, but within the limits of the law, determine their rights and obligations, including the conditions for terminating the contract.

Can commercial premises be used for residential purposes?

Commercial premises cannot be used to meet residential purposes, even if they are equipped and do not require renovation. Their specificity does not allow it. An alternative, when you need space to run a business and live in it at the same time, is a service and residential building .

Read also: Is it possible to transform a commercial premises into a residential one?