As a general rule, the lease also includes a provision for a security deposit. The deposit may be three monthly rents, but it is more often one or two months of the value of the rent. This is the owner`s decision and not very often negotiable. If your deposit is high, you can try to pay in two tranches – some homeowners might be understanding. The new Czech Civil Code regulates the rental of premises for commercial purposes, including Czech leases concluded before that date. Compared to general types of rental of real estate, the rental of commercial premises in the Czech Republic has several peculiarities. Owners, developers and their tenants who rent commercial premises in the Czech Republic should certainly be aware of this. Unlike many Western European countries, the provisions for leases are very liberal with regard to real estate such as those described above in the Czech Republic. Czech law allows the contracting parties to formulate their own agreement and the mandatory provisions to which the parties cannot deviate are limited to the bare minimum.

The parties can freely agree on the duration of the lease or renewal option, the length of the notice, the reasons for unilateral termination of the lease, etc. Czech law distinguishes between land and building leases (according to the general provisions of the Civil Code), residential building leases (according to the specific provisions of the Civil Code) and non-residential leases, which are mainly governed by the Non-Residential Building Rental and Sublease Act (Law 116/1990), which establishes the specific rights and obligations of the landlord and tenant as well as the reasons for termination; the general provisions of the Civil Code and the Code of Commerce also apply. Leasing Forms It should be reaffirmed that a technical improvement is not in itself a separate asset, even though, under the Income Tax Act, it may, under certain conditions, be depreciated as a separate real asset of real value for the duration of the lease. On a private level, a technical improvement and improvement of the property remain the property of the owner. A tenant may terminate the tenancy agreement in the circumstances set out in the contract; If the contract does not contain termination provisions, the legal provisions apply. A tenant has the right to use the premises to the extent agreed in the tenancy agreement. It is therefore not possible to transfer them between the tenant who terminates the tenancy agreement and the new tenant. One possible solution is to completely modify the lessor without terminating the original lease with the lessor. This is a number of tenants on the basis of a tripartite contract between the landlord, the tenant who leaves the rented premises and the new tenant who takes over the lease and uses the property. Although this situation is not expressly governed by the Income Tax Act, it is often used in practice and, in our experience, recognized by the tax authorities. The rental contract or (more often) an accompanying minutes may contain a description of the condition of the apartment when you take over the apartment, as well as its contents, the condition of the supply meters, etc.