Introduction of additional preferential conditions for tenants

The Parliament considered on first reading the draft law, implying the introduction of additional preferential conditions for tenants.

The establishing of this draft law is due to the need to provide support to real estate tenants.

The draft law provides that tenants of real estate – entities and individual entrepreneurs, will be entitled to the following:

• unilateral termination of lease contract without charging any fees, including for unilateral cancellation of contract;

• exemption from payment of penalties and forfeit;

• exemption from damages;

• return of a security payment made under a lease agreement, unless lessee has not fulfilled conditions not related to rental payments.

In this case, tenants must simultaneously sit the following criteria:

• proper performance of conditions under lease agreement prior establishing of  the high alert or emergency;

•  decrease in monthly income by more than 50% since establishing of  the high alert or emergency;

• lease contract should be concluded before establishing of  the high alert or emergency;

Tenants who rent state or municipal real estate, are intitled to prolong term of lease up to one year.

If lease subject is a land plot, it is proposed to allow its extension for a period not exceeding the term of contract , or if its term of contract exceed 3 years, to limit the extension to three years, regardless of whether the tenant has debt on rent payments .