A lease agreement is a contract between two (or more) parties to enter into a lease agreement. The agreement contractually obliges the parties concerned to enter into the lease either on a fixed date in the future or after fulfilling the conditions set out in the agreement. In order to avoid litigation when completing the lease, it is best to agree on the form of the lease and attach it to the contract. From the tenant`s point of view, she may have to do work on the premises, but does not want to pay rent during the work. An alternative would certainly be to immediately conclude the lease and agree a non-leaseable period with a licence (i.e. an agreement of the lessor) for the implementation of the changes. However, the downside is often the time without rental is for a fixed term (for example. B three months) and, if the work is longer, the tenant will then have to start paying the rent, even if the premises are not yet ready for the employment and use of the tenant. Therefore, it may be appropriate to enter into a tenancy agreement in which the lessor allows the tenant access to the premises to carry out the work, and then to require both parties to enter into the lease after the completion of the work. A landlord may insist that the tenant pay a percentage of the rent or the insurance and service fee contributions (if any) while he is doing the work, on the basis that he occupies the premises, but that would be on negotiation between the parties. If one of the parties has to take action (for example. B doing work or applying for planning), she will feel more comfortable, knowing that she has the advantage of a contract that requires the other party to enter into the lease.
From a practical point of view, also, if a lease agreement is to be entered into on a future date, it allows the parties to prepare for the move (for example.B. the tenant will be able to organize the movers and service companies and, if necessary, he will also be able to advertise). Leasing contracts can be very complicated, sometimes longer than the lease they support. However, the right way to treat them is undoubtedly beneficial for both the tenant and the landlord. The money saved by incorrect advice can be a bad saving, as each rental contract should be very suitable for individual premises and circumstances. If the parties agree to enter into the lease immediately, a lease agreement would not be required. However, if the lease is to be concluded in about six months, the parties can reach an agreement earlier to give certainty that the lease will be concluded if necessary (and that the other party will not resign unexpectedly). A lease agreement would also be required if certain conditions must be met before the lease is concluded, such as. B the lessor or tenant who agreed to carry out the work on the premises before the conclusion of the tenancy agreement.