In a judgment dated March 14, 2018 (file no. 26 Cdo 3821/2017), the Czech Supreme Court addressed the issue of the automatic extension of a fixed-term lease of business premises. The court found that such a lease will renew automatically on the same terms and conditions that apply to a residential lease.

This means that if a tenant continues to use leased business premises after the expiry of its lease and the landlord wishes to avoid automatic renewal, it will need to call on the tenant to vacate the premises. This notice must be delivered within three months of the date when the lease should have ended. There is no need for the landlord to file a lawsuit. Written notice will suffice. There are no special formalities, however the notice should state clearly that the landlord wishes for the tenant to vacate the premises.

If the landlord does not ask the tenant to vacate the premises, then – unless agreed otherwise – the lease will automatically renew for the same period as was previously agreed, however never for more than two years.

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