About the rental agreement

A carefully drafted rental agreement can protect both the landlord and the tenant from many inconveniences. No matter how trustworthy the other party may seem, it is not advisable to rely solely on trust when it comes to financial matters.

The rental agreement is a consensual contract, and it is sufficient for the parties to agree on the subject of the contract and the rental fee. In addition to the parties’ details, the address of the rental property, a precise description, the payment method, obligations, and the contract duration, it may be useful to include the names of the people living with the tenant and to prepare an up-to-date inventory of the items in the property.

The landlord’s main obligation is to hand over the property to the tenant, meaning to ensure the tenant’s right to possession and use, and to tolerate the use of the property for the entire duration of the rental agreement.

The landlord guarantees that the property is suitable for contractual use throughout the rental period and that it complies with the contract’s terms, as well as that no third party has any rights to the property that would restrict or prevent the tenant’s use of it.

By law, the costs associated with maintaining and repairing the property (renovations, repairs, etc.) fall on the landlord. The only exception is minor costs arising from the property’s normal use.

The tenant is obligated to notify the landlord if the property is at risk of damage or if there is a need for work that falls under the landlord’s responsibility.

According to the contract, the tenant is required to take possession of the property and pay the rent on time. Furthermore, the tenant must use the rental property according to its intended purpose and the terms of the contract, allowing the landlord to periodically check its use. In the case of improper or inappropriate use, the landlord may claim compensation.

Under the new Civil Code, not only rental agreements notarized by a public notary, but also those in private documents registered with the tax authority are considered directly enforceable regarding rent payment and the return of the property when the term expires. The practical significance of this provision is that the landlord can initiate enforcement without litigation or a court ruling, allowing the rent to be collected quickly, and the unlawful occupant to be evicted.

In practice, it is useful to register the rental agreement in the land registry, as this makes it public, and in the event of the property’s sale, the new owner is obligated to honor the rental agreement and the rights and obligations arising from it.

Under the new Civil Code, a rental agreement for a property can be concluded for a maximum of 49 years, otherwise, the longer period will be legally reduced to the term stipulated by law.

The tenant has the right of first refusal in case of a new rental agreement if they have fulfilled the obligations arising from the previous contract appropriately.

In the case of unjustified non-fulfillment of contractual obligations, the other party has the right to terminate the contract. If the possibility of lawful termination is not stipulated in the contract, it can only be ordered by the court.

A fixed-term rental agreement may be unilaterally terminated by the tenant with a 60-day notice period.

To avoid potential disputes, it is advisable to act with caution when concluding the rental agreement and to proceed in accordance with legal regulations, thus minimizing the greatest risk of renting out a property, which is that the tenant may not only fail to pay but may also refuse to move out.