What is a lease agreement and when to use it

A lease agreement is a contract where the lessor temporarily grants the lessee the right to use a thing in exchange for rent.
Typical examples include the rental of apartments, houses, commercial spaces, or movable assets (cars, equipment, machinery).

Legal framework

The lease agreement is governed by the Czech Civil Code (Sections 2201 to 2331).
Key features include:

• temporary use of the object,

• rent as consideration,

• obligation of the lessor to maintain the object in usable condition,

• obligation of the lessee to pay rent and use the object properly.

For real estate leases, written form is generally required to protect both parties.

Mandatory elements of the lease agreement

• Identification of the lessor and lessee

• Subject of the lease (precise description of the property or object)

• Purpose of use (e.g., residential, commercial)

• Rent amount and payment terms

• Duration of the lease (fixed-term or indefinite)

• Rights and obligations of both parties

• Terms for termination of the lease

• Date and signatures

Most common mistakes in practice

• Vague or incomplete description of the leased object

• Failure to define maintenance and repair obligations

• Omission of arrangements for service charges and utilities

• Unclear conditions for lease termination

• Missing written form (especially for real estate)

Recommendations for lessors and lessees

Lessor:

• Clearly specify usage rules and responsibility for repairs and maintenance.

• For real estate, prepare photo documentation at handover.

Lessee:

• Ensure the lease clearly defines your right to terminate and under what conditions.

• Verify what services and utilities are included in the rent.

Tip from practice

Disputes often arise because lease agreements fail to distinguish between minor and major repairs.
It is highly recommended to specify these obligations explicitly in the contract.

Basic lease agreement template – available for a symbolic fee

If you need a simple lease agreement template for a residential, commercial, or movable object lease, I can send it by e-mail for a symbolic fee.

This template is suitable for standard situations and serves as a working draft.
For customized lease agreements, I am happy to prepare a bespoke document for you.

If interested, please contact me via e-mail, contact form, or message. We will arrange everything quickly and easily.

Final thoughts – what now?

A lease agreement isn’t just a formality – it’s a legal shield, if drafted properly. And a trap, if not.

Do you want to be sure your contract will hold up even in a crisis? Get in touch and let’s schedule a meeting.