When concluding a private rental agreement, both parties, landlord and tenant, must know their rights and obligations. Most often, the parties are unaware/oblivious of their rights/obligations, and this results in facing problems and hassles that can lead up to a trial.
Regarding some of the tenants, they usually sign a pre-fixed agreement they retrieved online, neglecting to review it properly as far as provisions and clauses are concerned in it, or even without reviewing it at all.
We have prepared the main points you need to be aware of while renting a property, so to avoid disputes and misinterpretations.
1. Rent.
There is no legislation to make provision for a set price of rent. The rent is determined contextually by the parties’ free will and is binding. It is recommended that the true amount of the rent is stated in the rental contract, as this will help avoid potential problems with the tax authorities. It is also recommended that any future rent increases are specified in advance, so that each party knows what their rights and obligations accordingly.
2. Deposit and down payment.
An advance payment to the owner/lessor may be paid at the equal amount of one month's rent. It is forbidden by law to pay a deposit of more than two rents. The deposit will be returned to the tenant at the end of the rental period.
3. Duration of tenancy.
By law, a tenancy agreement is valid for at least three years, even if a shorter or indefinite period has been provisioned in the contract. If a tenancy agreement is made for a term of less than three years, it is invalid. In this case, the lease is valid for 3 years (as is established by law). If the tenancy agreement is made for a term of more than three years, then the agreement is considered valid. The exception to this is a second home or holiday home tenancy agreement. In this case, the length of the tenancy is at the discretion of the parties. The mandatory three-year lease applies only to cases involving the tenant's main residence.
4. Description of the property.
A correct description of the property in the contract will protect both the tenant and the landlord from future misinterpretations and disputes.
5. Use of the property.
The lease contract must explicitly specify the purpose for which the property will be used (residential, commercial, etc.). It is forbidden for the tenant to use the property for any purpose other than that specified in the agreement. If the need emerges to use the lease for purposes other than those specified in the contract, the lessee must obtain the written consent of the lessor.
The landlord is obliged to deliver the property to the tenant in a condition suitable for the agreed use and to maintain it in good condition throughout the rental period. The lessee is not liable for any damage or alteration to the property caused by deterioration due to the agreed use of the property.
6. Compensation for damages caused as a result of its illegal/unauthorised use.
To avoid conflicts between the parties, the contract should specify in detail which use of the lease is considered legal and which is not.
7. Online submission of the lease to the TAX Service Platform.
The tenancy agreement with the tenant's personal details is submitted electronically on the AADE platform. While a fully signed agreement carries its legal consequences, this alone is not sufficient to establish a legal lease. The submission of the contract to the AADE platform is a separate requirement.
Once a detailed agreement is drawn up and signed between the lessor and the lessee, the basic elements of the agreement are submitted electronically to the AADE Platform. If the tenant is a foreigner and the duration of the lease is up to three (3) months, the indication of his/her VAT number is not mandatory, only his/her passport number and place of residence are indicated.
8. At the end of the rental period, the tenant must return the property in the condition in which it was rented.
9. The tenant is not entitled to terminate the rental agreement before its expiry.
If the tenant wishes to terminate the contract prematurely, he is obliged to pay the remaining rent, otherwise the landlord has the right to claim it in court.