A lease and rental agreement is an agreement by which a natural or legal person can acquire the right to use property that does not belong to him for a certain term and for a certain fee.
The most important difference between rent and lease is that the contract by which the property is transferred for the provision of its economic activity (commercial activity) is lease, but everything else is rent. On the other hand, if a lease agreement is concluded with a natural person, then such relations between the tenant and the landlord are regulated by the Law on Rent of Dwelling Premises.
1. What is the difference between a lease and a rent?
Leases are used when the leased property is intended for a commercial activity. A rent is used for living space.
2. In what situations is a lease agreement concluded?
Lease agreements are signed in various situations, such as a land lease agreement, a building right agreement, a premises lease agreement, a sublease agreement, a lease agreement that provides for sublease options.
3. Who can sign leases?
Lease agreements can be concluded both between natural persons and between natural and legal persons. Such a lease agreement entitles a person to use premises or real estate owned by another natural or legal person for a definite period.
4. Is a sample blank lease agreement available?
DSSLegal offers its clients ready-made samples of many types of contracts. However, it is advisable to think carefully, it may be necessary in this case to prepare this contract by a lawyer, especially if the situation is not quite standard.
5. Does the lease agreement allow the premises to be subleased?
Yes, if provided for in the original lease agreement. In any case – the written consent of the owner is required, or – the owner’s signature on the sublease agreement.
6. For how long can a lease be concluded?
The law in Latvia does not specify either the minimum or maximum term for which a lease agreement may be concluded. This must be done on a case-by-case basis. When concluding a lease for a longer term, the conditions when and how the rent can be reviewed should also be provided. If the contract is concluded for a shorter period and it is planned to extend it, the amount of rent may be reviewed at each such renewal.