A law to protect the office space tenants in Monaco
The National Council voted unanimously the project of law for office space leases. The tenants will now be guaranteed a lease of minimum 5 years.
The Public legislative session was opened by Christophe Steiner, with the Law project that aims to modernise the legislation in the economic sector. Creating a specific legal framework for office space properties. This was voted on the 27th of October. The goals are clear, to be more attractive, and to guarantee business owners a safe lease of minimum 5 years.
The Governments objectives are to ensure that the relationship is safe for both parties in a leasing agreement, specifically in a commercial property sector. It has taken several project law votes, and 4 years to finally get to this new law proposal. The National majority advisor, Vice Chairman of the Committee of Finance and National Economy, then went on to explain that this text is going to fill in a legal vacuum which is currently quite hindering for investors and economic actors, current and future. The adoption of these provisions is urgent as there is a very strong demand.
On top of the proposed 5-year lease, the tenant will have a 6-month notice period, accompanied by an incompressible period of one year during which the landlord cannot terminate the lease. After a year’ lease, the tenant can end his lease at any time, as long as he gives the landlord the compulsory 6 months’ notice. According to Philippe Clérissi, the bill represents an undeniable asset to the economy and a fair balance between landlord and tenant.
An amendment was requested to cater for the landlords who wished to claim back their property for their personal use (many people have their office in their homes). This was thrown out, as the emphasis of this law, was to be able to guarantee the minimum lifespan of 5 years for all businesses.