GIPE Newsletter (Nº 24.173) July, 1st 2025

LEASES:

GRACE PERIOD IN EXCHANGE FOR RENOVATIONS

You wish to lease a property that requires renovations, and you have found a potential tenant willing to assume the cost of said renovations in exchange for not paying rent for the first few months.

Common situation

Renovations. In rental agreements for commercial premises or industrial warehouses, it is common for the tenant to carry out certain renovations to adapt the property to their needs.

Grace period in exchange for renovations. When these renovations are of a certain magnitude and provide a lasting improvement to the property, it is common to agree on an initial period during which the tenant will not pay rent, as compensation for the cost of said renovations.

Essential content. To this end, the lease agreement must detail, at least, the expected timeframe for the renovations, the licenses that must be obtained, the estimated budget, the specifications, and the final design plans.

Recommendation: It is advisable to include all this documentation as an annex to the contract. Furthermore, it must be stipulated that, if the tenant fails to comply with their obligations, the landlord may choose between claiming the unpaid rent or demanding the forced completion of the agreed-upon work. It must also be established that, if the tenant persists in non-compliance after being required to do so, the contract may be terminated.

SALE:

SALE OF PROPERTIES IN BATCHES

When a large property owner decides to sell a group of properties to another large investor, the question arises: can tenants exercise their rights of first refusal and redemption?

The Supreme Court recently addressed this issue. But what does the legislation establish in this regard?

In general, tenants have the right to acquire the rental property they occupy under the same conditions as those offered to an external buyer, if the owner decides to sell it. However, be careful! There are exceptions to this right.

In particular, these rights cannot be exercised when:

• The rented property is included in a joint sale with other properties or premises belonging to the same owner that belong to the same building.
• Or when several owners jointly sell all the apartments and premises in the building to a single buyer.

To avoid the right of first refusal and redemption, it is essential that the owner sell all the elements of the building to which he or she belongs. If he or she retains any, the tenants could claim their right to purchase.

GIPE: Together we will be stronger