Rent is an essential element of the commercial lease, it constitutes the tenant’s main obligation towards the lessor. The determination of the rent at the stage of conclusion of the commercial lease appears very free between the parties, while the regulations on subsequent revisions are more limited.
Determining the rent when concluding the commercial lease
The regulations leave it free to set the initial rent between the parties, whether it concerns the amount or the terms of payment. This payment can be made monthly (like the vast majority of existing leases), or quarterly, or even paid in advance.
The amount chosen by the parties is left to the discretion of the parties. Only a price that appears modest is likely to be called into question by the judges, and only in the event of a dispute by one of the parties.
The rent can be said to be fixed, which is the most common. It can also be variable, that is to say linked to a clause called a “revenue clause” which varies the rent according to the profitability of the activity. Finally, it can be mixed by mixing these two modalities.
Simulate my rental profitability
Rent review during the lease
The rent may be subject to review during the lease in two cases:
- When the parties have established in the lease a clause called an “indexation clause”
- Every 3 years, even without a clause in the lease
- In the event of renewal of the lease
The revision of the rent by the indexation clause
The purpose of an indexation clause is to automatically change the rent set initially, according to a periodicity agreed by the parties (annual for example).
The three-year rent review
During the lease, when the rent no longer corresponds to the real value of the premises, the parties legally have the opportunity to revise the lease, without needing to mention any clause within the lease. However, this legal review is only possible every 3 years and according to a legally established calculation formula.
Revision of the rent in the event of renewal of the lease
When the commercial lease expires, the parties can decide to renew it, and the law offers them the possibility of freely setting a new rent.
For more information: https://entreprises.service-public.fr/vosdroits/F31925