In this article we will try to answer the question of what it is - a vacation rental. Such concepts as definition of the term, content, meaning and functions of brokers, and the form for filling out the contract will be examined in detail. Some legal advice will also be mentioned.
General information
Many people when concluding transactions in the real estate market and in the commercial sphere of activity often face the need to arrange rental vacations. What this is, far from everyone understands, although in the modern world of business this is a fairly common occurrence.
In any lease agreement, at least two persons are present - the owner and the person who hires. Both parties to the agreement sometimes can not answer exactly what it is - a vacation. It is important to understand the significance of this commercial term in the contract, as it can cause a conflict of personal interests between the parties involved.
Definition of a concept
Before embarking on a more specific consideration of the concept of rental vacation, it is worth understanding their essence. If you use a commercial definition, they represent the period of time during which the tenant retains the right to occupy the premises without paying money to the owner. In another version of the conclusion of the contract, the amount of payments may decrease and correspond only to part of a certain basic value.
In most cases, such an arrangement is offered when renting premises that are in a state of fine finish. At first glance, it might seem that everything is extremely simple and clear. However, many questions arise when they begin to conclude a contract. Many are interested in the purpose for which the subject wants to receive rental vacations, how to arrange them correctly when creating the contract, how this will affect the profit of the owner. That is why it is important to know the answer to the question of what it is - a vacation rental.
Difficulties in drawing up a contract
Most often, when drawing up a contract, difficulties arise for several reasons. One of them is the consideration by the owner of the concept of "rental vacation" as a discount (concession) provided to the employer. The duration of the discount corresponds to the vacation period specified in the contract (provided that they are provided for initially). Tenants see in this concept an opportunity for the owner to realize the potential of his premises as an area that will be leased for a fee. However, speaking objectively, this should be of more interest to the tenant than the owner.
Legal advice
When considering what it is - a rental vacation, you should remember some useful tips that lawyers give during consultations.
The recommendations that tenants should pay attention to are:
- Coming to negotiations, it is necessary to clearly prescribe a plan on paper in which to indicate the type of work that will be carried out in the room. We should also mention the timing of their implementation. Such actions will strengthen the validity of the need to use the holidays.
- If the room you are interested in is not the first step in the development of a personal business (this building has already been rented to other tenants), then it is advisable to talk about repairing the inside of the building, if necessary.It is important to mention the planned improvements, for example, design, which will be beneficial to the owner himself. Innovation must also be planned and thought out in advance.
- If the legislation of the Russian Federation requires obtaining a license necessary for the implementation of your idea, it would be better to give specific links to the law, which describes the process and the timing of its receipt.
This is a list of key recommendations. If the tenant has a clear vision of his own business, is aware of all the subtleties of the process and the possible timing of the implementation of the plan, and the owner is interested in the quick sale of real estate, then the contracting parties can always come to a consensus. A lot also depends on the broker, whose services are used by the employer and the owner.
What the law says
Lease and rental agreement are not criteria of the legislation of the Russian Federation. In other words, there is room for creative thinking. However, the legislation itself does not prohibit drawing up an agreement using these commercial concepts.
In legal form, there are two options for drawing up an agreement. The first type of transaction is based on fixing the conditions of the holidays in the lease. They need to be prescribed as detailed as possible. The second option provides for the preparation of an additional agreement on rental vacation (in addition to the main contract). We should not forget that this concept refers only to the payment of the lease itself, but not to utilities.
About broker features
In practice, the question of what it is - rental vacations, qualified brokers are well versed.
If you are not confident in your own abilities, you can turn to such specialists for help. The broker will help you save your own time on the fact that you do not have to delve into each of the subtleties associated with the solution of this issue. Professional brokers will have hundreds of solutions to possible problems and will allow you to get the maximum benefit from the transaction. If the tenant decides to do everything on his own, it is recommended that you familiarize yourself with the intricacies of this process in specialized agencies.
Reasons for lower payments
A vacation rental agreement may include a reduction in the cost of payments. It often happens that the tenant for some reasons cannot pay the money immediately and in full, or he gives the payment only partially. Pay attention to the shortcomings of the premises should be before signing the contract. In this case, they can be used as a means to achieve a legal reduction in the cost of rent. It is never known exactly how the business will develop. Therefore, you should prepare for possible difficulties in advance and try to reduce the cost of renting. The reasons for this action can be the following factors:
- The need for completion or redevelopment of the premises.
- Carrying out a number of finishing and / or repair work.
- The need to carry out equipment with special equipment needed by the tenant.
- Long moving person renting a room.
The landlord should pay attention to effective mechanisms for attracting potential customers. One of such moves is the search for tenants at the stage when the premises are actually not ready for rent. Another mechanism is to keep the person who is taking it off from trying to terminate the contract during the limited operation of the used object (for example, only a small part of it, because everything else is still being completed).
Availability and parameters
Often you can meet with incompetence in the matter of how to register rental vacations in the contract. Before you begin to study the solution to this problem, it is worth paying attention to some details.
It is important to remember that the availability of vacations and the determination of their parameters should be addressed in the process of discussing the terms of the main lease.The issue of reducing fees for the use of the premises can be discussed in the process of its direct operation, but this will require solid reasons.
Vacations are an integral part of the contract between the tenant and the owner. Their relationship is based on data included in the contract document. The existence of a right to reduce the cost of payments for renting a premises is provided for in Article 614 (paragraph 3) of the Civil Code of the Russian Federation. Mandatory is the consent of both parties.
Different types of payments
Article 606 of the Civil Code of the Russian Federation defines the provision of leases as a service assuming the existence of its retribution (meaning that the amount due will necessarily be paid). It is important for both the tenant and the renter to consider this when considering how to schedule rental vacations.
Lack of fees may transfer this process under the jurisdiction of Chapter 36 in the Civil Code (on the provision of free space). Proper execution of the contract will allow the tenant to legitimately justify the need to reduce payment. The main cost reduction options are:
- A direct reduction in the amount of payment (meaning monthly), which will be valid for any long period, for example, six months.
- A deferral of payment, which assumes that as the vacation expires, the tenant will not transfer the funds to the owner. However, payments that “hit” during this period of time will be divided into equal shares and added to the main amount of the rent, which will be transferred at the end of the vacation.
Provisions of the contract
Let's consider how to register rental vacations in the contract. Sample applications can be found in various Internet sources upon request. Let's look at the most important components of such a document.
Sample rental vacation agreements should include:
- Reasons for their use.
- Clearly specified vacation duration dates.
- The specific amount of the current rental fee for a given period.
- The order in which payment will be made.
If the rental vacation was agreed and included in the contract, then the above points can be described in a special section of this document. Also, all information can be entered in separate paragraphs, contributing to the clarification of various issues on the topic.
A sample rental vacation agreement (if such an agreement is used) may include:
- Sections that contribute to the specification of the desires of the tenant and / or owner.
- Additional clauses clearly delineating the sections mentioned above.
- An additional set of conditions allowing to disclose the details of each specific clause in the contract.
Tax factor
Reducing the total amount of the rental fee provides the tenant with the opportunity to reduce income tax, which depends on a number of features of the tax regime itself. It is always important to pay attention to this issue, as its solution allows the tenant to justify the need to reduce the payment. In the absence of a competent and logically justified conclusion of the contract, the parties to the transaction may be suspected of conspiracy, the purpose of which is to reduce the amount of tax. The tenant, reducing the amount of rent for the premises, also gets the opportunity to reduce the cost of income tax.