For the classification of leased premises as residential or commercial tenancies, the focus of the tenancy is decisive.

Cologne, NRW -- (SBWire) -- 06/25/2013 --GRP Rainer Lawyers Tax Advisors, Cologne, Berlin, Bonn, Bremen, Düsseldorf, Essen, Frankfurt, Hamburg, Hanover, Munich, Nuremberg, Stuttgart and London www.grprainer.com/en explain: The Court of Appeal in Berlin (KG) ruled in its judgment of 17 June 2010 (Az. 12 U 51/09) that the classification of a tenancy as a residential or commercial tenancy is to be determined above all by the tenancy’s area of focus. This can then arise out of the circumstances of each individual case. An agreed contractual purpose can also potentially be decisive for the evaluation. The real intentions of the parties are also to be taken into consideration for this purpose. General tenancy law can then be applied if the tenancy serves a purpose that has no residential character.

The arrangement of a tenancy agreement can be of existential significance. Tenancy agreements in commercial tenancy law are often entered into for a long period. Moreover, large amounts of capital are frequently invested in the refurbishment of rental properties.

Parties to a tenancy should therefore have the tenancy agreement examined by a lawyer active in the field of commercial tenancy law before the agreement has been concluded. Otherwise, the classification of a tenancy as residential or commercial can potentially lead to far-reaching consequences for the parties, as many provisions designed to protect the tenant only apply to residential tenancies and not to commercial tenancies.

A lawyer active in the field of commercial tenancy law can help draw up tenancy agreements for commercial landlords and tenants. In doing so, their interests will be incorporated into the agreement in a legally effective manner from the outset. It may be advisable with limited tenancy agreements to include in the agreement options for the parties to unilaterally extend the agreement. In contrast, with unlimited tenancy agreements it may be desirable to make arrangements deviating from the statutory notice period. In addition, the commercial tenancy agreement should contain provisions on the adjustment of the rent during the term of the agreement, since there are no statutory regulations on this matter.

About GRP Rainer
GRP Rainer LLP http://www.grprainer.com/en/ is an international firm of lawyers and tax advisors who are specialists in commercial law. The firm counsels commercial and industrial companies and corporations, as well as associations, small- and mid-sized businesses, self-employed freelancers and private individuals worldwide from offices Cologne, Berlin, Bonn, Dusseldorf, Essen, Frankfurt, Hamburg, Hannover, Munich, Stuttgart, Bremen, Nuremberg and London UK.

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