Advantage company lease or company housing advantage
Rental : Advantage lease company or housing of function
It's become a common practice for companies to do corporate housing in Paris. They would buy or rent property so that their employees have a place to stay. And in this situation, it's important to remember what kind of lease you need and more.
The residential lease is invalid
First things first, it's important to take note that the residential lease is invalid for corporate housing. The Act of July 6, 1989, has set that the signatory of the residential lease sets the property as their principal lease. This is all well and good if it only pertains to an individual. But when it comes to a company, a legal problem arises.
In essence, the signatory of the residential lease is the only one recognized as the legal resident in the rental property. But in the case of corporate housing, there are two entities instead. There's the company, which usually signs the lease in place of the employee, and the employee, who benefits from the lease. The reason why companies can't sign a residential lease for their employee is because doing so means they (the company) are to be the resident of the property, not the employee. On the other hand, if the employee him/herself signs the residential lease, the agreement will only be between the tenant (the employee) and the owner/landlord. This leaves the company out of the equation.
The civil lease is correct
So what kind of lease will the company need to establish their corporate housing? The Civil Lease. Under the framework of Article 1708 and the Civil Code, the civil lease doesn't present any specific constraints. The company is free to sign the lease and its employee is legally allowed to reside in the property. In this situation, the company is technically the tenant while the employee is regarded as a subtenant.
The landlord is also free to establish the clauses that may concern the duration of the lease, the distribution of charges, or the terms of termination. And by signing the civil lease with the company, they're also agreeing to sublet their property to a third party (in this case, the employee).
An advantageous lease for the owner
In addition to enjoying freedom in drafting the lease, entering a civil lease with a company benefits the owner in multiple ways. For one thing, it puts a significant amount of financial responsibility on the tenant. The company has to pay for local taxes and property taxes, not to mention costs for major work on the property, throughout the duration of the lease.
At the same time, the civil code lease ensures that the property remains profitable even when there's no subtenant. The company is required to pay the rent regularly and it's their responsibility to find a subtenant for the lease.
- Corporate housing is when a company provides its employees with a proper residence.
- This requires a civil lease, not a residential lease.
- Owners enjoy financial benefits from entering a civil lease with a company.
You want to
to sell in Paris or its surroundings ?
Posted on 21/10/2021 by
Andy LECUYER
