FAQ for Commercial Tentants
Lease Agreement and Terms
What is the notice period for commercial leases?
The notice period for commercial leases is typically 3–6 months. For most leases, the notice period is 3 months. However, the specific notice period will always be stated in the marketing material and in the individual lease agreement.
Is it possible to sublet the premises or share the lease with a business partner?
Subletting or sharing the premises may in certain cases be possible, but always requires the landlord’s prior written approval. Any options and conditions relating to subletting or sharing are set out in the individual lease agreement. If further clarification is required, the property administrator may be contacted.
How and when is the rent adjusted?
As a general rule, the rent is adjusted once a year on 1 January, based on the net price index published by Statistics Denmark. In many lease agreements, a minimum adjustment has also been agreed. This means that the rent will be increased by a fixed minimum percentage if the increase in the net price index is lower than the agreed minimum rate. The specific terms of regulation, including the timing and any applicable minimum percentage, are stated in the marketing material and in the individual lease agreement.
Can the rent be adjusted if the market rent changes?
Both the tenant and the landlord may, after four years, request that the rent be adjusted to the prevailing market rent if the agreed rent deviates significantly from the market level. As the lease agreements typically derogate from the standard phasing-in provisions of the Danish Commercial Lease Act, any such adjustment will generally take full effect immediately. Please refer to the individual lease agreement for the specific terms and conditions.
What happens if the lease is terminated before the agreed term?
If the premises are vacated before the expiry of an agreed non-termination period, the landlord will seek to re-let the premises. The tenant remains liable for rent and other obligations throughout the entire non-termination period or notice period, until a new tenant takes over the premises or the period expires. The tenant is only fully released from its obligations once a new lease agreement has been entered into with a subsequent tenant and the premises have been finally handed over. The specific terms regarding termination and re-letting are set out in the individual lease agreement.
Can the lease be assigned to another company?
The possibility of assigning the lease to another company depends on whether a right of assignment has been agreed in the individual lease agreement. If a right of assignment has been agreed, the lease may be transferred to another company within the same line of business, subject to the landlord’s prior approval of the new tenant’s financial standing and business activities. A right of assignment is not a standard right and must be specifically agreed in the lease agreement, where the applicable terms and conditions are also set out. If the right of assignment is to be exercised, the property administrator must be contacted in order to initiate the process.
When is the premises considered properly handed over upon vacating?
The premises must be returned in the same condition as at the time of move-in. The condition upon handover is assessed in accordance with the individual lease agreement and the move-in report. If the premises were taken over newly painted and with newly treated floors, they must be returned in a corresponding condition, unless otherwise specifically agreed. Any alterations made to the premises, including painting in different colours or the installation of partition walls, must be reinstated unless a separate written agreement has been entered into with the landlord. The specific reinstatement requirements are always set out in the individual lease agreement.
What happens to fixtures and installations installed by the tenant upon vacating?
All fixtures and installations installed by the tenant must be removed upon vacating, unless otherwise agreed in writing with the landlord. When removing fixtures and installations, the premises must be reinstated. This includes, among other things, repairing holes in walls, floors or ceilings and restoring technical installations to their original condition. The landlord is not obliged to take over any fixtures. If items are left behind without prior agreement, they will be removed at the tenant’s expense. If the tenant wishes the landlord or a future tenant to take over any fixtures or installations, this must be agreed and confirmed in writing well in advance of vacating the premises.
Alterations to the premises
How are necessary renovations or repairs handled?
As a general rule, the tenant is responsible for internal repairs and alterations within the premises, unless otherwise stated in the lease agreement. Matters relating to the property as a whole should be directed to the Service Centre. Subject to agreement, the landlord may provide guidance and refer to relevant contractors.
May alterations be made to the premises to suit the business?
As a general rule, any alterations to the premises require the landlord’s prior written approval before the work is commenced. Unless otherwise specifically agreed, alterations must be reinstated upon vacating the premises.
How can an agreement be made regarding major refurbishment works?
Please contact us to initiate a dialogue. Assistance with guidance and coordination can be provided, subject to agreement.
Who bears the costs of alterations and renovations?
As a general rule, the tenant bears the costs of its own alterations and refurbishments in and to the premises, unless otherwise specifically agreed. The landlord is responsible for the maintenance of the property as a whole. If the landlord carries out or funds certain alterations, the cost may, for example, be included in the operating budget or regulated by separate agreement. The specific terms and conditions are always set out in the lease agreement.
Must alterations be approved in writing by the landlord?
Alterations, refurbishments and installations in the premises must receive the landlord’s prior written approval before any work is commenced.
May the façade signage be changed or solar film be installed on the windows?
Changes to façade signage and the installation of solar film on windows require the landlord’s prior written approval. Any changes must comply with applicable signage guidelines for the property as well as relevant municipal and other regulatory requirements. In certain cases, a separate approval from the relevant authorities may also be required.
May extraction, cooling or ventilation systems be installed?
The installation or modification of extraction, cooling or ventilation systems requires the landlord’s prior written approval. All installations must be carried out in accordance with applicable laws and regulatory requirements, and a separate approval from the relevant authorities may be required before the work is commenced.
How is it ensured that the work is carried out to a proper professional standard?
All work in the premises must be carried out in a proper and professional manner by authorised and VAT-registered contractors in accordance with applicable regulations. The landlord may require documentation of the work performed.
Cleaning and Maintenance
Who is responsible for cleaning the premises?
The tenant is responsible for cleaning and general internal upkeep of the premises. In the event of extraordinary matters relating to common areas, the Service Centre should be contacted.
Who is responsible for maintenance of the premises?
The tenant is responsible for the internal maintenance of the premises, while the landlord is responsible for the external and common maintenance of the property. The specific allocation of responsibilities is set out in the lease agreement.
What should be done if there is graffiti on windows or the façade?
The Service Centre should be contacted, after which the graffiti will be removed in accordance with the arrangements applicable to the property. In certain cases, the tenant may be responsible for removing graffiti, as specified in the lease agreement.
Which installations is the tenant responsible for maintaining?
The tenant is responsible for installations that exclusively serve the premises, including electrical installations, taps, sanitary installations and ventilation within the boundaries of the premises, unless otherwise agreed in the lease agreement.
What should be done if a technical installation is not functioning?
Kontakt Servicecenteret, som vurderer, om fejlen skal udbedres af udlejer eller af lejer i henhold til vilkårene i lejekontrakten.
Hvem står for snerydning og renholdelse af udearealer?
The Service Centre should be contacted, after which it will be assessed whether the issue is to be remedied by the landlord or the tenant in accordance with the terms of the lease agreement.
Who is responsible for snow removal and maintenance of outdoor areas?
Snow removal and maintenance of outdoor areas are generally handled by the property’s operations staff or an external contractor. The Service Centre should be contacted if additional supervision or action is required.
Renovation of the Property
How will tenants be informed about planned maintenance projects?
Tenants will be informed if a maintenance or renovation project affects the premises or access conditions. Notification will be provided in accordance with applicable regulations and may be given via e-Boks, letter, email or direct contact, depending on the scope and nature of the project. Only certain projects require formal notification by letter or via e-Boks.
How is the visibility of the business ensured during renovation periods?
If renovation or construction work temporarily affects the visibility of a shop or business, temporary signage may, subject to agreement, be installed on scaffolding or fencing, to the extent permitted by regulatory requirements and the conditions of the property.
How far in advance will tenants be informed about works on the property?
Tenants will be informed in due time prior to planned works. The notice period depends on the nature of the works and will be provided in accordance with applicable regulations.
What happens if renovation works affect operations or access?
The landlord seeks to plan the works in a manner that minimises disruption to business operations. If access to the premises is temporarily restricted or altered, the tenant will be informed in advance, and practical solutions will be agreed to the extent permitted by the project.
How is access for contractors to the premises handled?
Access for contractors to the premises is agreed in advance directly with the tenant and, where possible, arranged outside the business’s normal opening hours, unless otherwise agreed.
Who ensures that construction waste and dust are handled properly?
The landlord and the appointed contractors ensure that construction waste, dust and other environmental matters are handled in accordance with applicable regulatory requirements and the property’s guidelines.
Waste Management
Who is responsible for waste management in the premises?
The tenant is responsible for ensuring that waste from the business is handled in accordance with the rules applicable to the property and the municipality. In some properties, the premises are included in a shared waste management scheme, while in other cases the tenant must establish its own waste arrangement. The specific terms are set out in the lease agreement or in information provided by the property administrator.
May the courtyard waste containers be used for commercial waste?
The courtyard waste containers may be used, provided that the tenant has registered with the municipality and the waste (residual or recyclable) corresponds in type and volume to that of an ordinary household or a smaller business. Any use of the shared waste facilities must comply with the applicable municipal regulations and the property’s guidelines.
How do I sign up for a waste management scheme?
Registration can be completed either via the municipality’s website or by engaging a private waste management operator.
Who invoices for waste collection?
The selected waste collection provider will invoice the tenant directly.
If there is a shared waste management scheme in the property, is participation mandatory?
Yes. If the premises are located in a property with an existing shared waste management scheme, participation in that scheme is mandatory.
Who should be contacted if the waste containers are overfilled or damaged?
The Service Centre should be contacted, after which the property caretaker will handle the situation.
Utilities and Consumption
How are electricity, water and heating settled?
The settlement of electricity, water and heating is based on the principles applicable to the individual property and the specific premises. Electricity is often settled directly with the utility provider based on an individual meter. Water and heating may be settled according to measured consumption or allocated according to other principles, such as distribution keys or floor area, if individual meters are not installed. The specific settlement terms are set out in the lease agreement and in the property’s annual statements.
May an independent electricity or internet provider be chosen?
The possibility of choosing an independent electricity or internet provider depends on the conditions applicable to the individual property. In many cases, the tenant may freely choose an electricity supplier, provided that the installation allows for individual metering. The choice of internet provider depends on the technical infrastructure available in the property and any existing agreements. The specific options and restrictions are set out in the lease agreement or may be obtained from the property administrator.
How is consumption read and when is it invoiced?
Consumption is typically read once a year, but in some properties it may be calculated according to other principles, such as distribution keys or floor area. Heating, water and any shared utilities are normally paid through monthly on-account payments, which are adjusted once a year based on meter readings or the applicable allocation principles. The specific practice is set out in the lease agreement and in the property’s annual statements.
Who invoices for waste collection?
The selected waste collection provider will issue the invoice directly to the tenant.
What should be done if consumption appears unusually high?
If consumption appears unusually high, either the relevant utility provider or the Service Centre should be contacted, depending on how the consumption is settled.
Access and Logistics
How does access to the property work outside normal opening hours?
Access to the property outside normal opening hours is typically provided by key or access fob. The specific access conditions and any time restrictions are set out in the property’s house rules. Additional keys or access fobs can be ordered through the Service Centre in accordance with the applicable procedures.
May the courtyard or pavement be used for deliveries?
Short-term deliveries may normally take place in the courtyard or on the pavement, provided that access conditions are not obstructed, the surface is not damaged, and no applicable regulatory or property rules are violated. Any specific guidelines are set out in the property’s house rules or may be agreed with the property administrator.
Who should be contacted if the gate or intercom is not working?
The Service Centre should be contacted, after which the property’s technician or service provider will be called out to carry out troubleshooting and repairs.
How can additional keys or access fobs be ordered?
Additional keys or access fobs can be ordered through the Service Centre. A fee may be charged for ordering and administration.
Finance and Payment
When and how is the rent to be paid?
The rent is payable monthly in advance on the first day of each month, using the payment method specified in the lease agreement and/or the invoice, for example via direct debit or bank transfer.
May the courtyard or pavement be used for deliveries?
Short-term deliveries may normally take place in the courtyard or on the pavement, provided that access conditions are not obstructed, the surface is not damaged, and no applicable regulatory or property rules are violated. Any specific guidelines are set out in the property’s house rules or may be agreed with the property administrator.
Who should be contacted if the gate or intercom is not working?
The Service Centre should be contacted, after which the property’s technician or service provider will be called out to carry out troubleshooting and repairs.
How can additional keys or access fobs be ordered?
Additional keys or access fobs can be ordered through the Service Centre. A fee may be charged for ordering and administration.
Contact and Service
Who should be contacted in the event of technical issues?
Enquiries regarding technical matters relating to the premises or the property’s shared installations should be directed to the Service Centre, which will assess the matter and involve the relevant technicians or service providers.
Who handles enquiries regarding operations and maintenance?
Enquiries relating to operations, external maintenance and matters concerning the property’s common areas are handled by the Service Centre or the property administrator.
What should be done in the event of nuisance from neighbours or noise?
In the event of persistent nuisance from neighbours, noise or other disturbances within the property, the Service Centre or the property administrator should be contacted. The matter will then be addressed in accordance with the applicable rules and house regulations. As a general recommendation, it is often advisable to approach the neighbour directly before contacting the landlord, as direct dialogue typically supports a constructive neighbourly relationship and may lead to a more effective resolution.
Where can the applicable house rules be found?
The house rules are generally provided together with the lease agreement, if house rules have been established for the property. They may also be obtained from the property administrator or the Service Centre.