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Signing a commercial lease is a significant commitment for businesses, and understanding the legal framework in Romania is essential to protecting your interests. Whether you are a tenant or a landlord, ensuring that your lease agreement is clear, compliant and risk-free can help you avoid financial and operational challenges down the line. Here, we outline key legal pitfalls to watch for and strategies to mitigate risks when entering into a commercial lease in Romania.
A poorly defined lease agreement can lead to disputes over tenant rights, landlord responsibilities and financial obligations. Key aspects to clarify include:
Lease Duration – Ensure that the contract specifies the exact length of the lease, renewal terms and termination conditions.
Payment Structure – Outline rent payment deadlines, penalties for late payments and any adjustments linked to inflation.
Scope of Use – Clearly define the permitted activities within the leased premises to avoid future restrictions.
Solution: Always review the lease with a legal expert to confirm that all critical elements are explicitly defined and aligned with Romanian real estate laws.
Beyond base rent, tenants may be responsible for additional costs such as maintenance fees, service charges and property taxes. Common extra costs include:
Common area maintenance fees (CAM) – Costs associated with shared building services such as security, cleaning and repairs.
Property Tax Contributions – In some cases, landlords may pass municipal taxes onto tenants.
Utility Expenses – Clarify whether utilities are metered individually or split among tenants.
Solution: Negotiate a transparent cost structure with detailed clauses on what expenses are included in rent and which are separate. Request an estimate of annual service charges before signing.
Breaking a lease early can result in hefty penalties if exit clauses are not well-structured. Risks include:
Excessive termination fees – Some contracts require tenants to pay rent for the entire remaining lease period.
Lack of subleasing options – If the agreement does not allow subleasing, tenants may have limited flexibility in reducing financial burdens.
Notice Periods – Failing to adhere to required notice periods may result in legal complications.
Solution: Ensure the lease contains a fair and realistic termination clause, allowing for subleasing or early exit under predefined conditions.
Disputes often arise over who is responsible for property maintenance and repairs. Key factors to review:
Structural vs. Operational Maintenance – Determine whether major structural repairs (e.g., roofing, HVAC) fall under the landlord’s responsibility.
Tenant’s Maintenance Duties – Some contracts place extensive upkeep responsibilities on tenants, even for unexpected damages.
Renovation and Alteration Clauses – Ensure tenants have clear rights regarding interior modifications and leasehold improvements.
Solution: Negotiate clear responsibilities for maintenance, ensuring the lease outlines who handles major and minor repairs.
Landlords often require security deposits or bank guarantees to protect against default. However, vague contract terms can lead to disputes over:
Deposit Refund Policies – Conditions under which the deposit will be returned at lease expiration.
Bank Guarantee Periods – Whether guarantees extend beyond the lease term.
Unfair Deduction Practices – Landlords might claim deductions for normal wear and tear.
Solution: Ensure security deposit and guarantee conditions are clearly defined, including return timelines and permissible deductions.
Failure to comply with local real estate laws and zoning regulations can lead to operational setbacks. Common legal issues include:
Non-compliant Landlord Agreements – Some leases may lack proper registration or approval.
Zoning Restrictions – The leased space may not be legally approved for the intended business activity.
Legal Registration Requirements – In Romania, commercial leases exceeding 12 months should be registered with the tax authorities to ensure enforceability.
Solution: Work with a real estate attorney to verify that the lease complies with Romanian regulations and the property is correctly zoned for your business activity.
A well-negotiated commercial lease protects both landlords and tenants, ensuring legal security and financial predictability. By carefully reviewing lease terms, clarifying obligations and seeking expert legal advice, you can avoid costly disputes and safeguard your business interests.
At APEX Asset Management, we specialize in commercial real estate consulting, ensuring that our clients navigate the leasing process with clarity and confidence. Contact us today to discuss how we can assist you in securing a lease agreement that aligns with your business goals.
