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Rental agreement in Ukraine - special aspects

Every country has its own special regulation of rental agreement. Ukraine is not an exception. Rental agreement is regulated by civil code and commerce code of Ukraine. Also, court practice has influence on contractual arrangements. Here is an article where you can find everything you need to know about rental agreement in Ukraine.

Common information about rental agreement

Essential conditions of rental agreement in Ukraine is object of rent, term of agreement, rental price, amortization. In case of essential conditions are not provided in the agreement such document can be invalidated.

Also, agreement can consist of additional regulation which don’t break the law. Additionally, you can regulate sanction, rights and duties of parties, possibilities of hire-purchase, possibilities of sublease, special conditions about terminations of the contract etc.

What objects you can rent?

You can rent objects directly from the owner or be a subtenant (only in cases if such provided by main rental agreement).

For what terms you can rent?

Terms of the agreement is settled by the parties. You should know, that rental agreements on more than 3 years must be notarized. Also, rental contracts can not be termless. According to Law “On rent a land parcel” maximum term of renting the land parcel is 50 years. In case of renting premises, parties usually use the same maximum term.

Transfer and acceptance act

The most uncommon thing for foreigners is transfer and acceptance act. This document should be in each rental deal. It sets up that premise was given from owner to tenant. You should know, that signed rent agreement doesn’t prove the fact that the premises were transferred, only transfer and acceptance act.

Who pays for repairing?

You should take care about clause of the agreement which regulates repairing of the premise. If it is not stated in the agreement, it means that owner should make major repairs, but you as a tenant should make ongoing repairs.

Can you make a sublease?

If you are planning to make rental business and take main building in rent as well, then pay attention to sublease provision in your main rental agreement. Without this provision you can not make a sublease agreement with your potential clients.

Take care about fire and other safety issues

In most cases, the owner, while start building a premise, takes care about all safety processes as fire, electricity etc. For instance, if you have some special kind of production, you should take care about safety issues additionally. It may require special education for the stuff or drafting special policy for employees.

Additionally. Please, keep in mind that if rental agreement is signed between legal entities the written form of agreement is obligatory. Also, as it was mentioned before, if term of agreement is more than 3 years it should be notarized. In some cases, companies sign an agreement on 2 years and 11 months to avoid notarizing process. Such process can be avoided if you want to save money and time.

If you need to get further details, please read more J&L articles.

Also, you may contact author of the articles, Lawyer in J&L consulting Bogdan Yankiv
bly@j-l.com.ua.