Lease agreement – what is it, what to watch out for, a template.

Based on the lease agreement, the lessor gives the asset, e.g. a flat, to the other person – the
lessee – for use, and the lessee pays the lessor the agreed rent.
It is recommended to conclude the contract in writing, notarial form is not required.

The contract must specify:
1) parties to the contract, i.e. who is the lessor and who is the lessee
2) the asset that is the subject of the contract, e.g. a car or a flat

ATTENTION! After the end of the lease, the lessee must return the asset in a non-
deteriorated condition (however, they are not responsible for the wear and tear of the
assets as a result of proper use). Therefore, it is recommended to mention the condition of
the rented item in the contract (and e.g. to take pictures of it, especially if it has any
shortcomings/defects/traces of previous use), in order to avoid ambiguities when
returning it.
3) acceptable use of the asset
If the contract does not specify the way of using the asset, it should be used in a way that
corresponds to its properties and purpose.
4) possibility/rules of making changes to the asset
As a rule, without the consent of the lessor, the lessee may not make changes to the asset
that are inconsistent with the contract or the intended use of the asset.
5) the period for which the contract is concluded:
– for a limited period of time (e.g. several months, one year) or
– indefinite (i.e. no end date specified).
Whether the contract is concluded for a definite or indefinite period affects the scope of
the rights and obligations of the lessee and the lessor.
6) the amount of the rent as well as the method and date of payment
The rent is usually a monetary amount, but it may also be specified in other types of
If the date of payment of the rent is not specified in the contract, the rent should be paid in
advance, namely:
– when the lease lasts no longer than a month – for the entire duration of the lease,
– when the lease lasts longer than a month or when the contract was concluded for
an indefinite period – monthly, until the tenth day of the month.

Attention! The lessor may increase the rent by terminating the current amount of rent at
the latest one month in advance, at the end of the calendar month.

7) whether the lessor agrees to sublet or grant free use of things to persons other than
the lessee
When the premises are rented, the lessor’s (i.e. landlord’s) consent to sublet or use it
free of charge is required.
8) date and reasons of termination of the contract
– contract concluded for a definite period of time – the lessee and the lessor may
terminate the lease in the cases specified in the contract.
– contract concluded for an indefinite period – if the contract does not specify a
notice period, it may be terminated within statutory periods, e.g. when the rent
is payable monthly – one month in advance at the end of the calendar month.

ATTENTION! When the lease is for premises and the rent is payable monthly,
the lease may be terminated at the latest three months in advance at the end of
the calendar month.

ATTENTION! In certain cases, the lessor has the right to terminate the
lease without observing the notice periods :
– if the lessee does not pay the rent for at least two full payment periods (if the
lease is for the premises, the lessor (landlord) must notify the lessee (tenant) of
their intention to terminate the contract and set an additional monthly period
for payment of the outstanding rent).
– if the lessee uses the asset in a manner inconsistent with the contract or with
the purpose of the asset, and despite a reminder, they do not cease to use it in
such a way, or if the lessee neglects the asset to such an extent that it is
exposed to loss or damage.
– if the tenant (lessee of the premises) grossly or persistently violates the
applicable domestic order or through his inappropriate behavior makes the use
of other premises in the building inconvenient.
In certain cases, the lessee also has the right to terminate the lease without notice, if
the rented asset has defects that:
– prevent the use of the asset provided for in the contract, or
– have not been removed.