If, in this case, the landlord/owner had understood and recognized that the tenant was in fact managing the premises as a commercial tenant under a lease (instead of attempting to abbreviate an imprecise “licence” agreement), he could have obtained a valid lease from the outset more than likely. This would have meant that the tenant`s correct legal status was properly regulated, providing clarity and security to both parties, and that the lessor would never face an unexpected and uncomfortable security problem if he tried to recover the property later. A lease agreement is simply a contract between two parties to enter into a lease agreement at one time or another. It may grant the tenant a licence to enter the premises to carry out work, but it is not a lease agreement (i.e. a lease) per se and does not authorize the tenant to have a lot of rights to the property. From the tenant`s point of view, she may have to do work on the premises, but does not want to pay rent during the work. An alternative would certainly be to immediately conclude the lease and agree a non-leaseable period with a licence (i.e. an agreement of the lessor) for the implementation of the changes. However, the downside is often the time without rental is for a fixed term (for example. B three months) and, if the work is longer, the tenant will then have to start paying the rent, even if the premises are not yet ready for the employment and use of the tenant. Therefore, it may be appropriate to enter into a tenancy agreement in which the lessor allows the tenant access to the premises to carry out the work, and then to require both parties to enter into the lease after the completion of the work. A landlord may insist that the tenant pay a percentage of the rent or the insurance and service fee contributions (if any) while he is doing the work, on the basis that he occupies the premises, but that would be on negotiation between the parties.
The main advantage of a lease is that it provides the parties with the comfort that others actually enter into the lease on the date (or schedule) set out in the agreement.