Are you happy with your tenant and want to extend their lease? We will advise you on how to draw up a lease extension and what must be included in the so-called lease amendment. We will explain whether the addendum changes anything significant in the contract. But we will also tell you what to do if you want to end a tenancy with a problem tenant.
In our environment, we more often see fixed-term leases. If we want to continue it after the expiry of the agreed lease term, it is necessary to extend it by an addendum. However, there is one special rule to keep in mind. If the tenant continues to use the flat for at least three months after the date on which the lease was due to end, the lease is automatically renewed. If the landlord does not wish to continue the tenancy, he must give the tenant written notice to leave the flat within three months of the end of the contract. If the tenant fails to do so, the lease is renewed for the period for which it was agreed, up to a maximum of two years.
However, this automatic extension may be explicitly excluded in the contract. The contract then expires at the end of the term and the tenant must move out. If the tenant himself does not want to continue the lease, he simply hands over the apartment to the landlord. We recommend that you draw up a handover report, which states the condition in which you are handing over the apartment. It can also serve as evidence in case of disputes.
Sometimes, however, the automatic extension is also explicitly stipulated in the contract. Then it is always necessary to actively terminate the contract before the end of the agreed period, as it foresees.
We will make sure that renting an apartment or other real estate is done without legal complications. We will draw up or check the lease agreement and advise on how to terminate or extend the lease.We will handle everything quickly and flawlessly. You can only pay after the service has been provided.
If you are entering into a tenancy agreement, either as a landlord or a tenant, you must mutually agree whether you will enter into it for a fixed term or an indefinite term. If you do not agree on the duration, then it is an indefinite lease under the Civil Code. If you even agree on a lease for more than 50 years, it will be an indefinite lease with the proviso that in the first 50 years it can only be terminated for the agreed reasons and at the agreed notice period.
An open-ended lease can only be terminated by the landlord for statutory reasons, for example if the tenant fails to pay rent for a long period of time. Therefore, it is not surprising that landlords prefer a fixed-term contract. This is because they can get rid of a problematic tenant after the expiry of the term of the lease without having to give three months’ notice.
Tip: Find out what to look out for when renting an apartment from a tenant’s perspective.
Rent can be increased in several different ways, for example by mutual agreement. However, the landlord can also increase it unilaterally. This is the case for an open-ended lease, but the Civil Code limits rent increases to a 20% increase every three years, up to the maximum rent customary in the locality.
As an entirely new contract is concluded after the end of a fixed-term contract, the rent can be renegotiated (and often increased). There is nothing to prevent this even in the case of an open-ended lease. However, this is an agreement in the form of an amendment.
What to watch out for?
According to the Civil Code, a written contract can only be amended in writing. This also applies to the lease of an apartment. An amendment to the lease agreement therefore also requires a written form. A handshake or a confirmation in a text message is not sufficient to guarantee an agreement.
Number the amendments carefully so that it is clear in retrospect which version of the contract they actually follow. So always label them as Appendix 1, 2 and so on. And for your peace of mind we add: If you forget the numbering, it does not automatically invalidate the addendum.
If you’re surfing the internet looking for a model lease addendum, make sure it contains everything it should. As we have already discussed, if the lease is in writing, any amendments to it must also be in writing. That includes the addendum. This is something that those who are interested in how to rent their apartment safely should be especially careful of. For example, if the landlord only agrees verbally with the tenant to extend the lease and increase the rent at the same time, such an agreement will be disregarded. The landlord will then be in a situation where the lease is automatically extended but the rent remains the same.
In the addendum, specify the contracting parties – who is the landlord and the tenant. That is, their names, surnames, dates of birth and residential addresses. You must also identify the original contract. For example, it is possible to write that the addendum relates to a tenancy agreement entered into on that date between the above parties. It is useful to write to which clause of the contract the addendum relates, or which clauses it amends or replaces. The addendum will then contain specific changes to the contract, such as the period for which it is being extended, the new rent amount, etc. Finally, be sure to write when the addendum is effective and sign it.
Can someone else act for the landlord? The parties to the addendum are the same as those who entered into the original tenancy agreement with each other. However, it does not matter if someone else acts for them each time. For example, if there is a new managing director in the company, he or she signs the lease addendum, not the managing director who has already left. The same is true for the authorised representatives.
A successor to the original party, for example an heir to a leased apartment to whom the rights and obligations under the contract have passed, may also sign the addendum.
From law practice: Landlord attempted to amend the original agreement with an addendum
Ms. Heda sent us an addendum to her lease because she did not like one particular provision that the landlord had added. She was right, it was suspicious at best. By using the sentence in question, the landlord was trying to revoke the consent to the sublease that he had previously guaranteed to Mrs. Heda and that she was using.
The subletting would thus be a breach of contract and the landlord would have the flexibility to terminate the lease at any time. This is because an unauthorised sublet is considered a gross breach of the lease agreement directly by law and would leave the landlord free to terminate the agreement early.
Do you have any doubts about the lease amendment? We will be happy to help and advise you! Do not forget to attach the tenant’s registration certificate to the lease agreement. Find out more about it in our article on landlord’s duties and tenant’s rights.
We provide a complete package of services for both landlords and tenants. We will draft or review all lease/rental contracts, help with extension or termination of lease, and make sure everything takes place smoothly and without legal complications. You’re also welcome to pay after services are provided.
Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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