Many people make a lease with property owners, which allows for a fee to use different residential or non-residential facilities. Often, such an agreement provides for rental vacations, allowing you not to pay money to the owner of the premises during the repair work. Each tenant should know what rental vacations are, and also when exactly they can be used. Lessors do not always agree to the inclusion of information about such holidays in the contract, since in this case they for some time lose their basic income.
What is a rental vacation?
They are represented by a certain period of time during which the tenant does not pay a fee for the use of residential premises. Typically, vacations are provided for the duration of repairs.
It is advisable to indicate the possibility of their registration directly in the lease. For their use, it is important to negotiate all conditions with the owner of the property.
How are prescribed in the contract?
All participants in a rental relationship should understand what it is - a vacation rental. They are provided by the lessor only when an urgent need arises. During this time, no rental payments are made. Most often they are provided at the time of repair work in the room. Perform this work can be the immediate owner of the facility or tenants.
During repairs, tenants retain the right to use housing, but at the same time they either do not pay rent, or payments are significantly reduced. This is due to the fact that due to the repair work the ability to use housing is limited.
How to register a rental vacation? To do this, you can use the following options:
- even in the process of drawing up the main lease, it is possible to indicate the possibility of making such a vacation;
- if the need arises during the term of the main contract, an additional agreement may be formed between the two participants.
The correctness of the text of the contract depends on how the holidays are provided, how long they are, and how tenants pay for the possibility of using the premises.
Payment Nuances
The need for repair of premises can arise for various reasons. This may be due to a deterioration in the state of utilities or the need for cosmetic repairs. At this time, the opportunity to arrange a vacation. What does it mean - rental vacation? During this time, tenants still use the property, but their rights are significantly limited.
Repair can be carried out by direct users of the premises, hired specialists or the owner of the facility. At this time, the following conditions can be used regarding the payment of rent:
- reduction of rental payments by the time required for repairs;
- expenses incurred by the housing user are offset, therefore, rental payments are not paid for some time;
- cash payments for the entire period of the repair are completely stopped, but at this time tenants must pay utility bills, as well as bear other costs associated with the maintenance of the premises;
- other options stipulated by two participants in the relationship.
Maximum rental holidays are set directly in the contract or supplementary agreement. For this, it takes into account how much actually it will take to finish the repair work. Rarely used is a method involving a complete cessation of rental payments. This is due to the occurrence of certain risks with the lessor.
What information is entered into the contract?
Each tenant and owner of a dwelling should know what rental vacations are, as well as how to write them in the contract. In the process of drawing up the agreement, the following points are taken into account:
- the conditions under which repairs are carried out are agreed upon;
- the reasons used to establish a rental vacation are given, since not only repairs, but also other events can be used for this;
- indicates a specific period of time represented by this vacation, and its countdown may begin from a specific date or event;
- financial conditions that are valid for a specified period of time are given, and they certainly affect the obligations of the parties.
If the process of drawing up the main contract does not stipulate the possibility of arranging vacations, then this can be foreseen later, when the need arises. In this case, an additional agreement is drawn up between the two parties containing information about the vacation. A sample contract can be studied below.
What if the landlord does not agree?
Often, the owners of the premises do not agree to the design of the holidays. In this case, tenants may insist on early termination of the contract. They should refer to the fact that due to the need for repair work, they have difficulty using the premises. They cannot take full advantage of their user rights.
Typically, in such situations, the owners of the premises go forward, therefore, reduce the amount of payments or completely refuse them for a while.
How are conditions formulated?
If the conditions under which the rental vacation is provided are specified, then the correct wording should be understood. To do this, the following conditions are included in the contract or supplementary agreement:
- in which premises will the repair be carried out;
- what work will be carried out;
- who is responsible for the result of repair work;
- who will bear the costs of this process;
- during what time the repair will be carried out.
Based on these parameters, important conditions for cooperation are determined. If rental vacations are offered for a period of several months, then during this period payments may be reduced or completely terminated.
The nuances of drawing up an additional agreement
Often, people who enter into a lease do not think about what a vacation is and when it becomes necessary. This leads to the fact that before the direct repair work it is impossible to use the terms of the contract. Therefore, in order to formally stipulate all conditions of cooperation, an additional agreement is formed.
This agreement provides the following information:
- the reason for the repair work;
- duration of the procedure;
- rental payment rules;
- date when changes to the rules for transferring funds are made;
- other significant conditions for the parties.
This agreement is made in duplicate. It is an official appendix to the lease.
Tax consequences
Both parties must figure out how to arrange a rental vacation. For this, the necessary information may be entered into the lease or an additional agreement may apply. This takes into account the tax consequences for each participant in the transaction.
When providing such vacations, tax inspectors may have questions. This period may qualify as providing citizens with premises for free use. Therefore, participants in the transaction face the following consequences:
- the owner of the premises is required to pay VAT for the provision of gratuitous services, for which the market value of the lease is taken into account;
- the lessor will not be able to classify depreciation as expenses;
- home users must take into account the income that arises from receiving free services, therefore, based on the market price of the property, income tax is paid.
Such consequences arise only if the parties to the transaction are legal entities. If they are represented by citizens, then no taxes are paid, as the landlord has no income. The tenant does not receive any profit, since he only temporarily uses the premises for personal purposes.
Legal advice
Professionals recommend that both parties to the transaction when making a rental vacation take into account the following features:
- it is advisable to provide for the possibility of arranging such vacations during the initial drafting of the lease, which will allow to take advantage of such an offer in the future;
- if initially the tenants plan to carry out cosmetic repairs, then this should be agreed with the owner of the premises before signing the contract;
- if the contract does not contain information about the holidays, the lessor has the right to refuse to provide them even if there is a reason for the repair, so tenants will not only have to carry out repair work, but also pay the rent in the same amount.
Therefore, initially, both parties to the transaction should approach the drawing up of the lease responsibly.
Conclusion
A lease agreement allows individuals or companies to use a room for a fee. If it is required to carry out repairs in real estate, rental vacations may be formalized. Their term depends on the duration of the repair.
Such vacations can be provided not only with a standard rental contract, but also with an additional agreement. During this period, rental payments may cease or their size may decrease.