Key Clauses in a Romanian Commercial Lease: A Tenant's Guide
Before signing a lease for commercial premises in Romania, understand the essential clauses that affect your obligations, costs and flexibility.
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Signing a commercial lease in Romania is a significant commitment for any business. Understanding the key clauses before you sign helps avoid surprises and gives you a solid foundation for negotiating fair terms. This guide summarises the main points to review in a typical Romanian commercial lease, whether you are renting an office, shop, or warehouse.
Parties and premises
Make sure the contract clearly identifies the landlord and tenant with their legal details, and describes the rented space precisely. The address, floor, surface area, and any allocated parking or storage should be listed. If a floor plan or annex is mentioned, ask for it to be attached. Check who owns the building and whether the person signing has authority to lease the property.
Duration and renewal
Most commercial leases run for one to five years, but longer terms are common for larger spaces. The contract should state the start date, end date, and any conditions for renewal. Many agreements renew automatically unless one party gives notice, usually 30 to 90 days before expiry. Pay attention to the notice period and the method of giving notice, as missing it can lock you in for another full term.
Rent and indexation
The lease must specify the monthly rent, the currency, and the due date. Rents are often set in euros but payable in lei at the official exchange rate. Indexation clauses are standard: the rent may increase annually based on the inflation rate or another index. Make sure you understand which index is used and when the first increase applies. Also check what additional costs are included, such as service charges, property tax, or building insurance.
Security deposit
Landlords commonly ask for a refundable deposit, often equivalent to several months’ rent, held against damage or unpaid bills. The contract should explain how the deposit is held, when it is returned after the lease ends, and under what conditions deductions can be made. If the deposit is large, discuss options such as a bank guarantee.
Permitted use and alterations
The lease will state the permitted use of the premises, such as office, retail, or light industrial. Using the space for a different purpose may require landlord consent or a new zoning approval. If you plan to make changes—partition walls, new electrical wiring, or signage—check whether written consent is needed and whether you must restore the premises at the end of the lease.
Maintenance and repairs
Clearly define who is responsible for repairs. Typically, the landlord maintains the structure, roof, and common areas, while the tenant is responsible for interior upkeep, such as painting, flooring, and routine maintenance of systems. The contract may include a service charge for common areas; ask what it covers and how it is calculated.
Subletting and assignment
If you might need to share the space, sublet, or transfer the lease to another company, ensure the clause allows it. Many leases require prior written consent from the landlord, which may be withheld only on reasonable grounds. For growing businesses, the flexibility to assign the lease can be crucial.
Termination and exit
Understand how the lease can end before the fixed term. Some contracts allow early termination with a penalty, while others do not. Check the notice period for ending the lease at its natural expiry and any requirements for the condition of the premises upon return. An inventory or condition report at the start can protect you when it is time to leave.
Utilities and insurance
The tenant usually pays for utilities separately, based on meters or an allocation formula. Clarify who contracts with utility providers and how costs are apportioned. You will also likely need to insure your own contents and public liability; the landlord insures the building. Confirm the insurance requirements in the lease.
Dispute resolution
Finally, check the governing law and dispute resolution clause. Romanian law applies to property in Romania, but the contract may specify arbitration or the ordinary courts. Understand where and how disputes will be resolved before you sign.
Always have a qualified Romanian lawyer review the lease, especially if it is only in Romanian or you are unfamiliar with local practice. A small investment in advice can prevent costly misunderstandings later.
