Common use of July 2004 Clause in Contracts

July 2004. An agreement on free rent determination implies that the rent may only be reduced in those cases where the rent is unreasonably high. Therefore, the tenant may not claim a reduction of the rent, which is otherwise the case, even though the mutually agreed rent substantially ex- ceeds the cost-related rent or the value of the property. An agreement on free rent determination and rent regu- lation during the period of the tenancy must be stated in section 11 of the tenancy agreement. If an agreement on free rent determination has been made, it may be agreed that the rent in the period of the tenancy is to be regulated in accordance with the net price index. The agreement must be stated in section 11 of the tenancy agreement. If it does not appear from the tenancy agreement that the rent can be regulated in accordance with the net price index, the rent cannot be regulated during the period of the tenancy. However, the rent may be regulated as a consequence of increases in and imposition of new taxes and dues. For properties situated in unregulated munici- palities, this requires a special agreement. The agree- ment must be stated in section 11 of the tenancy agree- ment. Index-financed housing There are special rules for determining the rent in prop- erties, whose construction has been financed by index- linked loans. According to these rules, the rent may be determined so that the total rental income can cover the necessary op- erating costs of the property at the time of construction with the addition of the return on the value of the prop- erty. Corresponding rules apply to properties occupied after 1 January 1989, constructed and let by landlords subject to the act on real interest tax. For both types of properties, special rules apply to the regulation of the rent during the period of the tenancy.