Rental contract: basic requirements and features

A rental agreement is a common form of civil legal relations regulating the transfer of property for temporary use. It is often used in everyday life and business: renting cars, appliances, housing or other things . According to Art. 787 of the Civil Code under the rental contract, the lessor, who is engaged in the business of leasing things, transfers or undertakes to transfer the movable thing to the lessee for use for a fee for a certain period. The rental contract is a joining contract and a public contract. The lessor can establish standard conditions of the rental agreement.

Basic requirements for the rental agreement

• The rental agreement is concluded between the lessor and the lessee, who can be both natural and legal entities. For the lessor, the transfer of property for rent is a business activity. Therefore, in order to conclude such a contract, the lessor, regardless of his legal status, must act as a business entity .

• The rental agreement applies only to movable things that are usually used for household or personal needs . However, by agreement of the parties, such things may be used for production purposes. Real estate cannot be the subject of rental — its transfer is regulated by other norms or general provisions on hiring. Also, property rights do not fall under the scope of the rental agreement.

• The period of use of the property is determined by agreement of the parties. In the absence of a clearly defined term, the contract is considered concluded for an indefinite term .

• The lessor is obliged to hand over the property in a proper condition, suitable for use. The contract may specify conditions for checking the condition of the property before and after its use . In most cases , an act is drawn up, which records its condition , which allows you to avoid controversial situations during the return.

• The lessor is responsible for hidden defects of the property, if they make it impossible to use it . The lessee is responsible for damage or loss of property, if it is caused by his fault. Fines for late return of property or non-payment of rent may be prescribed in the contract.

• Insurance is often provided for valuable property , which can be a mandatory condition of the contract.

The rental agreement has a number of important characteristics that distinguish it from other types of agreements:

Prohibition on subletting. The lessee may not transfer the property received under the rental agreement for use by third parties. This agreement provides for the use of the property exclusively by the tenant for his own needs. If there is a need to transfer the item to another person, the current contract must first be terminated, after which a new agreement is concluded with another user.

Lack of priority for the purchase of property. In case of sale of the rental object, the lessor is not obliged to offer it to the lessee in the first place. He can sell the property to any person on general terms, without taking into account the fact of its use by the lessee. At the same time, at the lessee's request, the lessor may transfer the rental object into ownership, if it was used by the lessee during the entire regulatory period of operation or in accordance with the requirements of current legislation.

Property repair duties. In contrast to the general rule, when the current repair of the property is entrusted to the tenant, in the rental legal relationship the landlord is fully responsible for the repairs. It covers the costs of both current and capital repairs, unless it is proven that the damage to the property was caused by the tenant's actions.

Set deadlines for troubleshooting. In the event of damage to the rented object, the lessor is obliged to eliminate the defects within three working days from the moment of receiving the corresponding request. If repairs need to be carried out in a workshop, the term is extended to ten days. The above, in addition to the CCU, is regulated by the Procedure for providing temporary use to citizens of objects of cultural and household purpose and economic use

A rental agreement is a convenient mechanism for temporary use of property. However, in order to avoid misunderstandings or conflicts, it is important to spell out the terms of the agreement in detail and take into account the rights and obligations of both parties. Always read the contract carefully before signing it, and if necessary, consult with a lawyer .

Templates that may be useful:

- instrument rental agreement ;

- car rental agreement between natural persons ;

- equipment lease agreement.