Who wants a Commercial property should not underestimate the commercial lease: Unlike residential leases, there are hardly any statutory protective provisions. Many points are purely a matter of negotiation. It is therefore crucial to check the following clauses carefully and renegotiate them if necessary.
1. term: How long are you bound?
Commercial leases in Austria are usually Temporaryoften for 5 or 10 years. One ordinary termination is usually excluded. It is therefore important whether Termination clauses (break options) are included, e.g. in the event of business closure. Without such provisions, you will otherwise quickly find yourself in a financial trap.
Tip: Make sure you have flexible exit clauses - especially for start-ups or pilot locations.
2. indexation: How does the rent increase?
Many commercial leases contain Value protection clausesmostly at the VPI (consumer price index). Pay close attention to this:
- Time of the first adjustment
- Adjustment threshold (e.g. 5 %)
- Catch-up in the event of non-adjustment
Further information on the VPI: Statistics Austria
3. operating costs & heating costs
These are mostly to be borne in full by the tenant - including administration costs, insurance and proportionate building maintenance. Get a precise BK list and check:
- What is included?
- Is there a monthly advance payment?
- How is billing carried out?
| Checklist BK clause | What to check |
| Billing cycle | Monthly or annually? |
| Cost items | Which cost types are included? |
| Vacancy regulation | Tenant pays even if other areas are vacant? |
4. maintenance & repair
Outside of the MRG, it can be agreed that the tenant Also major repairs must carry. Ensure a clear separation:
- Ongoing maintenance (e.g. maintenance) → often tenants
- major overhaul (e.g. roof renovation) → better landlord
Note: Unclear regulations can be expensive!
5. protection from competition: protection from competitors
A Protection against competition prevents the landlord from permits similar businesses in the same property. The clause should contain:
- Specification of the protected sector
- Exclusion of certain activities
- Sanctions for violation
6. conversions & investments
Many tenants invest in renovations themselves. You should therefore clarify this:
- Do you need the landlord's consent?
- What happens at the end of the contract? (Dismantling obligation? Compensation?)
- Who bears the approval and planning costs?
Tip: Written consent to investments secures your rights.
7. handover status: What does the contract say?
Document exactly:
- the Actual state (Photos, protocol)
- Existing defects
- Technical equipment
Important: Anything that is not documented is deemed to have been accepted without defects.
8 Liability & insurance
Who is liable for what? Check:
- Exclusions of liability for the landlord
- Insurance obligation of the tenant (e.g. inventory, glass, liability)
- Obligations in the event of a claim
Attention: Many contracts unilaterally shift the risk to the tenant.
9. option rights & extension
An option right gives you the opportunity, to be extended on one side. Clear rules help:
- Time limit and form of exercise
- Renewal conditions (e.g. index adjustment?)
Key takeaways: commercial lease clauses that you should check
- Clarify term & termination options in good time
- Make indexing transparent
- Have operating costs broken down precisely
- Clearly regulate maintenance obligations
- Contractual protection against competition
- Have conversions approved in advance
- Document handover condition
- Observe insurance and liability obligations
- Options ensure your flexibility
Conclusion: commercial rent is a matter of negotiation
The "commercial lease" offers leeway - but also risks. Those who know the most important clauses and negotiate them in a targeted manner will ensure long-term economic stability.
Arrange a free initial consultation now: Kroy Real Estate
Frequently asked questions about commercial lease clauses (FAQ)
What is the difference between a residential and a commercial lease?
A commercial lease is often subject to not subject to the Rent Act (MRG) and therefore offers less legal tenant protection. Many regulations - such as those relating to operating costs, maintenance or termination - are freely negotiable.
Does a commercial lease have to be in writing?
Yes, absolutely! Even if there is no legal formal requirement, a written contract is strongly recommended - especially because of the evidence in the event of disputes and the precise documentation of the agreements.
How long can a commercial lease last?
Typical are Fixed-term contracts over 5 to 10 years. It is important to check whether a Termination option (break clause) was agreed and whether there is a Option right for extension.
What does indexation according to CPI mean?
Indexation links the rent to the Consumer Price Index (CPI)in line with inflation. As a result, the rent can Increase automaticallyas soon as the index exceeds a certain threshold. Details should be precisely regulated in the contract.
What operating costs do I have to pay as a tenant?
In the case of commercial leases, it is customary for the tenant to all operating costs including heating, insurance and administration. The decisive factor is what specifically agreed in the contract is.
What happens to investments in the rental property?
If you carry out conversions or improvements, you should always the prior consent of the landlord and regulate whether a Compensation on moving out is provided. Without an agreement, you risk a complete loss of the investment
Is protection against competition mandatory?
No, protection against competition is Not required by lawbut can be agreed individually. It protects your business from same or similar competition in the same building.
Who is liable for damage or accidents in the property?
Liability is usually contractually passed on to the tenantin particular in the event of improper use or failure to comply with maintenance obligations. Important: a adequate public liability insurance lock!
Can I simply extend the contract?
Only if a Option right or a Extension clause has been agreed in writing. This must contain clear rules, e.g. deadlines for exercising and adjusting the rent.
