We often say:
Leasing relationships are like marriage. They begin with mutual understanding, based on love or on sound calculation, but we do not know how they will develop and, moreover, how they will end. Only one thing can be said for sure: when drawing up the contract, the lawyers of the parties should use all their experience and imagination to foresee all the important points and not leave uncertainties that could interfere with successful business cooperation in the future.
It is believed that only an experienced lawyer can draw up a quality contract. Nevertheless, working on the market for 25 years, we know that even a professional cann't always take into account all the wishes and expectations of his client. While a person without a law degree, who is fluent in Russian and has logical thinking, in some cases can perfectly transfer an oral agreement to paper.
Alas, in this article we will not provide you with universal instructions for drawing up an ideal lease, but we will consider a few key points that you need to remember when starting to work on a contract.
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The rental agreement must be in plain language
The most common reason for misunderstanding between the parties is inaccurate clauses that give rise to a double interpretation and disputes. In this regard, the lease agreement does not differ from any other agreement: each article should be drawn up so that its essence is understandable to any person who has taken the agreement in his hands, even if he does not know anything about the contents of the previous negotiations.
And the most experienced lawyers in the preparation of complex documents give them for proofreading to their colleagues. A glance from the side greatly helps in the work.
Four elements: rights, obligations, consequences and terms
These key aspects form the basis of the contract - they must be correctly spelled out. The discrepancies in any section may lead to a violation of the rights of one of the parties.
The lawyer working on the contract analyzes each step and turns it into a set of rights and obligations. Moreover, any obligation must have its own deadline, otherwise it can be postponed indefinitely.
It is important to foresee the consequences that will occur in case of failure to fulfill obligations on time. For example, if the landlord pulls with the purchase of a closet, the tenant can be empowered to purchase it by subtracting the cost from the nearest rent.
It is necessary to clearly understand the subject of the rental agreement
The contract must clearly indicate the address of the rented apartment; and if a part of it is leased, the boundaries of the transferred object must be clearly stated. In the latter case, visualization helps: you can attach a plan to the contract by highlighting the boundaries on it. If a garage or parking place is handed over for rent with the apartment, they must also be fixed in the contract. Please note that the garage, unlike the apartment, refers to non-residential fund. If you have questions about the features of legal regulation and taxation, we advise you to contact a professional lawyer.
Define rental payment procedure
The size and frequency of making rental payments should be worded to the last detail. If the lease is set in foreign currency, you must specify how it is paid and at what rate the conversion is calculated. The purpose of the insurance deposit varies: it can be used solely to compensate for the damage, it can be counted over the last month. Deductions can occur either after the apartment is returned, or during the lease term. An inaccurate description of the insurance deposit in the contract may lead to undesirable disputes between the parties, therefore, we recommend that you step by step register the procedure for assessing and compensating for damage, without forgetting to specify clear terms and responsibility for their non-fulfillment.
Fix the payment of utility bills
It is important not only to distinguish who pays for electricity, gas, water and other utility amenities - but also to prescribe the procedure for their payment or reimbursement. Over the years, we have repeatedly witnessed the following situation: the landlord believes that the tenant takes the electricity bills from the box and pays for them independently. At the same time, the tenant believes that the owner pays the bills himself and issues documents for reimbursement. As a result, as we understand it, none of the parties pays for the light, and, ultimately, the management company turns it off.
Minor nuances matter
To establish an effective contractual relationship between the tenant and the owner, the parties need to consolidate the possibility or inability to make changes to the appearance of the apartment. This can apply to holes in the walls for decorative elements, and more serious changes.
The contract should clearly indicate whether it is possible to have animals or smoke in the apartment. Many people have a strong allergy to animals and a tobacco smell. Smoking in the apartment upon termination of the contract can lead to high costs for deodorizing the premises, and often - for redecorating.
Working with our clients and drawing up lease agreements for them, we don't pursue the goal of introducing the maximum number of provisions that protect one side and violate the rights of the other. Such tactics can only contribute to the formation of mistrust even before the conclusion of the transaction and provokes the second side to retaliate. A tough contract containing a large number of fines and penalties, as practice shows, is equally disadvantageous for both. Therefore, at Intermark, we always follow the win-win path, that is, respecting the interests of both parties, and we believe that the main value of the contract is a clear consolidation of agreements that does not allow for ambiguity.
To draw up a contract and negotiate, we recommend contacting companies with a high reputation specializing in leases.
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Author: member of the RAUIE, chief lawyer of Intermark Relocation company - Andrey Lukash
