You might be thinking…

“We’re both companies, we can work it out, so a short contract is enough.”
Not quite. In commercial leases, anything not expressly regulated in writing can lead to unexpected disputes. The Civil Code gives the parties great freedom – but that’s why nothing important should be left out.

Questions my clients ask

• How to divide responsibilities for maintenance and repairs?

• Who is liable for damages caused by employees?

• Can the landlord unilaterally increase the rent?

• What if one company wants to terminate the lease early?

• How does rent taxation and VAT apply?

What the law says

• Leases between two companies are governed by the general rules of lease agreements under the Civil Code.

• The parties have broad contractual freedom – they can regulate almost everything according to their needs.

• If they leave something out, statutory rules apply, which may not be favorable for both sides.

Common risks

• Unclear liability for damages – especially if caused by the tenant’s employees.

• Repairs and maintenance – without clear allocation of duties, disputes are inevitable.

• Rent and service charges – in commercial leases, landlords often pass some service costs to tenants; without clarity, this leads to conflict.

• Termination – companies often underestimate notice periods and termination grounds, even though early termination can be costly.

Who is liable for damages caused by employees?

• Tenant (the company): If an employee damages the rented premises in the course of work, the tenant company is liable, not the individual employee towards the landlord.

• Employee: Only liable internally to their employer under labor law.

• Landlord: Liable for damages arising from defects of the property.

That’s why it’s essential that the lease clearly states the tenant is responsible for its employees and any third parties it allows into the premises.

Practical steps – how to prevent disputes

1. Put everything important in writing – rent, deposits, services, maintenance, termination.

2. Employee liability – include a clause that the tenant is liable for their employees’ conduct.

3. Insurance – require liability insurance to avoid costly disputes.

4. Payment control – always pay via bank transfer, never “cash in hand.”

5. Document handover – handover protocol with photos at the beginning and end of the lease.

Case study

Company A rented office space from Company B. The lease agreement did not clearly regulate liability for employee-caused damage. One of Company A’s staff accidentally broke the building’s entrance door. The landlord demanded compensation from the company, but the tenant argued the specific employee should be liable. The dispute escalated to lawyers – with a clear result: the tenant company was liable, since the damage was connected to its business operations. A single missing clause in the contract led to an unnecessary conflict and legal costs.

Lawyer’s recommendation – checklist

✅ Always have a detailed lease contract, not just a simple template
✅ Define liability for damages and employees in writing
✅ Require a handover protocol with photos
✅ Pay only via traceable methods
✅ Arrange liability insurance

Frequently asked questions (FAQ)

Can the landlord unilaterally increase rent?
Only if expressly agreed in the contract.

Is the employee directly liable to the landlord for damage?
No, the tenant company is liable. The employee is liable only internally to the employer.

Does the lease between companies have to be in writing?
Yes, always. Oral agreements are invalid and unenforceable.