The Landlord’s Claim<\/strong>: The landlord argued that, according to this provision, WeWork did not have the right to sublease the space without obtaining additional consent. They also claimed that this practice could disrupt relationships with other tenants in the building.<\/p>\n The Tenant WeWork’s Claim:<\/strong> WeWork argued that they were acting in accordance with the lease agreement, which stated that the space would be used for the business purposes and business model of WeWork. Since WeWork’s business model involves leasing for co-working, they believed they were not violating the agreement.<\/p>\n Who was in the right, the landlord or WeWork?<\/p>\n This is just one example of the various disputes that can arise in relation to lease agreements. This highlights the importance of proper preparation when entering into such an agreement.<\/p>\n A lease agreement is an obligation-based legal relationship. Through this relationship, the landlord, as the provider of a specific asset (in our case, commercial space), enters into an agreement with the tenant, as the recipient. They agree on the rights and obligations arising from such a contractual relationship, as well as the amount and terms of the rent. All other aspects of such a relationship are also negotiated.<\/p>\n Lease agreements vary due to different reasons:<\/p>\n Negotiations for entering into a lease agreement are an essential part of the process. These negotiations can often take several months, so tenants must allow themselves enough time to conduct these negotiations without pressure.<\/p>\n During the negotiation phase, tenants must also be cautious if they have an existing lease agreement. They need to calculate the notice periods that must be respected when terminating the previous lease agreement.<\/p>\n Tenants should align the notice periods from any potential previous lease agreements with the start of the new lease agreement to avoid double rent payments. Several checks also precede the lease agreement during the negotiation process.<\/p>\n A crucial part of the process of entering into a lease agreement is the legal due diligence of the property. This legal check is conducted by reviewing the one sheet for the property.<\/p>\n If negotiations are being held for leasing a property under construction, this check should include verification of the building documents, particularly whether the company constructing the property has a building permit.<\/p>\n When conducting a legal check through the review of the property’s one sheet, several aspects are examined:<\/p>\n The physical inspection of the property, or an on-site inspection, is very important for several reasons. This inspection is usually conducted together with architects, designers, engineers, and other professionals.<\/p>\n The physical inspection of the property covers several aspects, with the most important being:<\/p>\n All the above-mentioned factors, depending on the tenant company’s preferences, can be decisive in making a decision to lease the property. These are also factors around which negotiations with the landlord will be conducted.<\/p>\n The maintenance of the property is another aspect that must be carefully considered when entering into a lease agreement, especially for long-term leases where the tenant company operates its business within the property.<\/p>\n Our law distinguishes between two types of property maintenance:<\/p>\n Regular maintenance and<\/strong> Article 573, paragraph 3 of the Law on Obligations stipulates that: “The costs of minor repairs caused by regular use of the object, as well as the costs incurred during its use, shall be borne by the tenant.”<\/p>\n Paragraph 1 of the same article states: “The landlord is obliged to maintain the object in proper condition during the lease term and to carry out necessary repairs.”<\/p>\n “He is obliged to reimburse the tenant for the costs that the tenant has incurred for maintaining the object, which the landlord himself would have been required to undertake.”<\/p>\n According to the aforementioned provisions, the costs for regular maintenance<\/strong>, such as routine cleaning of the property, replacing light bulbs, etc., are borne by the tenant.<\/strong> The costs for investment maintenance<\/strong>, such as roof repairs, plumbing repairs, etc., are the responsibility of the landlord<\/strong>.<\/p>\n In reality, the tenant may encounter situations where, due to a burst water pipe or other damage in the property where they conduct their business, they are unable to operate and thus suffer financial losses.<\/p>\n These scenarios should be clearly defined in the lease agreement, specifically whether in such an emergency the landlord is required to respond and fix the damage or if the tenant, due to the urgency of the situation, should take action themselves, with the landlord reimbursing the costs.<\/p>\n Additionally, in such cases, the tenant should protect themselves in the lease agreement to ensure compensation from the landlord for losses incurred due to the inability to operate, such as compensation for the material damage suffered.<\/p>\n![\"\"](\"https:\/\/almelaw.com\/wp-content\/uploads\/2024\/08\/kamal-kant-twx33i9v6eu-unsplash.jpg\")
<\/p>\nWhat is a Lease Agreement?<\/h2>\n
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What Precedes a Lease Agreement?<\/h2>\n
Legal Diligence of the Property – Subject of the Lease Agreement<\/h2>\n
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On-site check of the Property – Subject of the Lease Agreement<\/h2>\n
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<\/p>\nMaintenance of the Property While It Is Leased<\/h2>\n
\nInvestment maintenance.<\/strong><\/p>\nRegular and Investment Maintenance<\/h2>\n
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