Rental of real property
A written tenancy agreement determines the rent amount, other rights and obligations and the notice periodWhether you are leasing or renting a property, conclude the tenancy agreement in written form. Under this agreement, the landlord (lessor) shall handover the property to the tenant (lessee) for use, and the tenant shall pay rent for that property. The agreement also determines the rent amount, other rights and obligations and the notice period.
The property owner is required to show the energy certificate to a prospective tenant or lessee.
For residential buildings with two and more apartments and buildings for community housing (e.g. retirement homes, pupils’ and students’ dormitories, workers’ hostels, children’s homes, prisons, military barracks or such), usually a single common certificate is prepared, but separate energy certificates may also be prepared.
Rights and obligations of the lessorThe landlord is obliged to maintain the rented apartment in a proper state for residence in accordance with the tenancy agreement, and is obliged to timely make necessary repairs at his/her own expense.
Furthermore, the landlord is obliged to compensate the tenant for the costs of repairs that the tenant made, whether because they were urgent or because the landlord, after being notified, failed to make them within a reasonable period.
The landlord may terminate the tenancy agreement without complying with the notice period if the tenant failed to timely pay the rent due two consecutive times, but the agreement shall remain in effect if the tenant pays the outstanding amount before receiving the termination notice.
The landlord may terminate the tenancy agreement without a written warning if the tenant has more than two times acted contrary to the agreement or the Act on Lease of Apartments.
The property owner is required to hand over the energy certificate or a copy thereof to the tenant or lessee of the building.
Rights and obligations of the tenantThe tenant has the right to use shared rooms, parts and devices of the building necessary for using the apartment and the right to use the accompanying land belonging to the building. The tenant is obliged to protect the apartment from damage, and is prohibited from making changes in the apartment, shared rooms and devices of the building without the landlord’s prior written consent.
The tenant is obliged to notify the landlord of any necessary repairs in the apartment or on shared parts of the building (at the landlord’s expense); the tenant is liable for any damage that he/she causes in accordance with general regulations. The tenant is obliged to pay rent within the time periods defined in the agreement.
Termination of the tenancy agreement and noticeThe landlord may terminate the apartment tenancy agreement (with prior written notice to remove reasons for termination within 30 days) if:
- the tenant failed to pay rent and other agreed housing-related costs within the agreed period
- the tenant is subletting the apartment or a part thereof without the landlord’s permission
- the tenant or other users of the apartment are disturbing other tenants or users of the building in peaceful use of their apartment or business premises
- the apartment is used by a person not specified in the tenancy agreement for a period longer than 30 days without the landlord’s permission, except in the case of a spouse, descendant or parent
- the tenant or other users of the apartment are not using the apartment for housing, but they are using it, in whole or in part, for other purposes.
The agreement is terminated in writing, and the notice period for the tenant to vacate the apartment is three months, starting on the first day of the month following the month in which the notice of termination was received. The landlord may terminate the apartment tenancy agreement if:
- the tenant or other users of the apartment caused damage to shared rooms, devices and parts of the building, and failed to remedy it within 30 days
- the tenant is making changes in the apartment, shred rooms and devices of the building without the landlord’s prior written consent.
The agreement is terminated in writing, with an explanation and the deadline for vacating the apartment, which may not be less than 15 days. The tenant may terminate the apartment tenancy agreement concluded for an indefinite period, but he/she is obliged to notify the landlord at least 3 months before the date he/she is planning to vacate the apartment.
Tax liabilityIf you are renting a housing unit, you may be obliged to pay:
- real estate income tax
- real estate income tax as income tax from a self-employment activity
- surtax on the income tax
- profit tax.
You can find out how the rental tax is calculated and what tax rate is applied on the website of the Tax Administration
Landlords of housing units.