Are you owning or renting your shop?

This article is published in fashion business special journal Modin.

There are good and bad aspects when renting or owning your business premises.

Renting could be more profitable because owning tides company’s capital from actual business.Renting could also enable faster reaction for company’s need of space and its changes and tenant does not have any obligations towards housing company. On the other hand, owning your premises can be very profitable investment and it can support company’s solidity. In popular areas rents can be very high. Tenant must also remember that he does not have same rights as owner has. Tenant must leave the premises after ending lease contract and take the business elsewhere.


Shareholders responsibilities and obligations become evident in Housing Companies Act and in the articles of association. Shareholder’s most important obligation in housing company might be to pay maintenance charge. A new owner is liable to pay maintenance charge when apartment’s ownership passes to new owner and with certain limitations even former owner’s unpaid maintenance charges.

Obligation to pay maintenance charge concerns both charge for maintenance and financial consideration which are shareholder’s portion of company’s debts. Financial consideration may rise surprisingly high if company executes big renovations. Entrepreneur, who considers buying a share, should examine company’s actions, condition and financial status carefully, so the liabilities of owner do not just come as surprise. Influence of big renovations to business should be evaluated. Maintenance charge should be paid even if there is a big renovation done by the housing company.

One of the most important liabilities of a shareholder is duty to exercise proper care. Condominium’s owner must take care for his condo and make his maintenance and modifications the way that nothing in the apartment will break down. Shareholder must report failings to housing company. Shareholder is, however, not responsible for wearing which is caused by normal using. Housing company is responsible to maintain the apartments insofar as it is not responsibility of the owner.


The law which is applied to renting is the law of renting business premises. It should be noticed that parties of lease contract can also agree other way than it is enacted in the law when concerning use, condition and care taking of business premises.

The most important obligation of business premise’s tenant is to pay rent. The amount of rent is defined in rental contract and it is normally paid monthly. Neglecting payments lead usually rescinding the tenancy.

Tenant must report all damages or lacks to landlord. If the apartment is left unused for a long time, tenant should report it to landlord. Apartment should be in the condition which corresponds the age and use of apartment as well the usual standards of equal apartments in the area. If there are defects of failings which belong to landlord’s responsibilities, tenant might have right to get discount from rent or even to end the tenancy.

Tenant must take care of apartment. Tenant is not responsible for usual weariness, which result from using the apartment. If tenant causes damages intentionally or carelessly to the apartment, he is liable to compensate those damages to his landlord.Tenant has to compensate also those damages to his landlord, which are caused by the persons who are in the apartment with the permission of the owner and cause damages intentionally, with negligence or other carelessness.

© 2024 Asianajotoimisto Lindblad