GIPE Newsletter 27 May 2024

LEASES:

RENTAL TERM ENDED

The tacit renewal in a lease contract is a legal concept that is applied when, at the end of the duration of the lease contract (whether for housing or commercial premises), the tenant relationship continues without any of the parties expressing their willingness to finish it. In other words, if the tenant continues to occupy the premises and pay rent after the end date of the contract, it is considered that he has entered into tacit renewal.

• Here is an example to understand it better:

Imagine a home lease with a final extension that ends on February 1, 2021.

If the landlord does not inform the tenant that the contract ends on that date and that he must hand over possession of the property, the contract comes into tacit renewal.

According to article 1566 of the Civil Code, the landlord must communicate the termination of the contract to the tenant within 15 days following the end date of the last extension.

In this example, the landlord must notify you no later than February 15, 2021.

How long will the contract last when it has entered into tacit renewal? This will depend on how the rent was originally set:

• If an annual rent was agreed upon (even if it was paid monthly), the tacit renewal will last one year.
• If a monthly rent was set, the tacit renewal will be renewed month by month.
  

In summary, the tacit renewal creates a new lease contract that maintains the clauses and conditions of the original contract, except for the duration.

It is important that both landlords and tenants are aware of these deadlines and communications to avoid misunderstandings and conflicts.

SUBLEASE THE PARKING

When a home and a parking space are rented jointly, the entire contract is considered to be a housing lease, and therefore, the regulations relating to these leases apply.

If the tenant no longer needs the parking space and wants to sublease it, here are some important points to keep in mind:

• Landlord consent: To sublease the parking space, the tenant would need the express consent of the landlord. If he does not obtain this consent, the landlord would have the right to terminate the contract.
• Termination of the sublease: The sublease will automatically terminate when the main contract ends, even if the tenant resigns early. That is, if the rental contract for the house ends, the sublease will also end.
• Obligations of the subtenant: The subtenant will be obligated to the main landlord for the acts related to the use and conservation of the parking space. This means that the subtenant must comply with the same conditions and responsibilities as the main tenant.
• Sublease rent: The sublease rent cannot be higher than that agreed in the main lease contract. In other words, the subtenant cannot charge more for the parking space than what was already agreed to in the original contract.
  

It is important for the tenant to be aware of these legal considerations to avoid conflicts and ensure a proper subletting process.