Conclusion of a rental agreement: Legal requirements, obligations, and specifics

With a rental agreement, the landlord (lessor) undertakes to allow the tenant (lessee) to use a movable or immovable property (apartment, house, land), and the tenant (lessee) undertakes to pay rent for it.

The parties can include clauses in the rental agreement, such as an option for the lessee to purchase the leased property, where the rent paid is credited towards the purchase price, and the lessee can buy the property after a specified period and become its owner.

The same rules that apply to apartment rentals also apply to the rental of a single-family house.

A rental agreement (lease agreement) must be concluded in writing; otherwise, the contract is not valid. When selling a leased property, it is necessary to consider the tenant's preemptive right, which affects the validity of the sales contract. All these circumstances, conditions, and other factors must be taken into account for a valid conclusion or termination of a rental agreement.

If you need legal assistance in drafting a rental or lease agreement, contact attorney Jurij Kutnjak, and they will represent you in the process of establishing or terminating the rental (lease) relationship.

Rental agreement for an apartment or single-family house

Under the Obligations Code and the Housing Act, a landlord undertakes to transfer an apartment or single-family house to the tenant for consideration, and the tenant undertakes to pay a specified rent for it. The agreement can be concluded for a fixed or indefinite period and must be in writing.

The tenant is obliged to pay the rent and the costs of regular maintenance of the apartment or house, such as cleaning and regular maintenance work, etc.

The landlord is obliged to transfer the apartment for use to the tenant and take care of the maintenance of the apartment or house, which is not a result of regular use, such as repairs to windows, doors, central heating, etc.

Only the owner of the apartment or house can be the landlord, and in the event of a change of ownership (e.g., sale, gift) of the apartment or house, the tenancy does not terminate but remains valid. The new owner enters the legal position of the landlord under the existing rental agreement.

The rental agreement must be concluded in writing, and its content is precisely defined by the Housing Act (landlord and tenant, subject and duration of the lease, rent amount, security deposit, termination and cancellation of the lease, etc.).

If the apartment is furnished, it is advisable to include an inventory list and prepare a handover protocol.

If you need legal assistance in drafting a rental agreement for an apartment or single-family house, contact attorney Jurij Kutnjak and ensure you make the right choice for your case.

Termination of the rental agreement

The rental relationship or agreement terminates due to the expiration of the lease term, mutual agreement to terminate the contract, termination of the contract, and also in the event of the termination of the leased property (e.g., due to fire or earthquake).

Until the amendment of the Housing Act, which came into effect with the amendment on June 19, 2021, the regulation applied that termination of a rental agreement for an apartment based on default could only be done through the court.

For termination of a rental agreement based on default (only in case of non-payment of rent and expenses), a judicial termination is no longer required. Instead, the termination is given through a written notice of termination to the tenant. Before terminating the rental agreement, the owner must notify the tenant in writing of the breach of the rental agreement. If the tenant still fails to pay the rent within a specified period, the landlord can terminate the contract. The contract is terminated when the termination is served on the tenant.

If the tenant does not vacate the apartment, the owner can request the court to issue an eviction order to force the tenant to vacate.

If the tenant objects to the court order and the court grants the objection, the procedure continues as a regular civil procedure with a lawsuit. This also applies if the rental agreement for the apartment was concluded in the form of an immediately enforceable notarial deed.

If the tenant still refuses to vacate the apartment despite the court's decision or judgment, the owner can request enforced eviction through an enforcement procedure (eviction).

The conclusion of a rental agreement for an apartment or house is associated with numerous legal questions and risks that you need to be aware of when concluding the rental agreement. Therefore, do not undertake the process on your own without proper legal assistance from an attorney. For drafting a rental agreement for an apartment or house and representation in the eviction or eviction process, contact attorney Jurij Kutnjak and ensure you receive appropriate legal assistance.

Court order for eviction of an apartment or single-family building

A legal basis is required for the use of another person's apartment or single-family house, i.e., an agreement or at least permission or consent from the owner of the apartment or house for use. Generally, this legal basis will be a concluded written rental agreement.

If this does not exist, and the user does not have the owner's permission for use, the use is illegal, and the owner has the right to demand the eviction of the apartment or single-family house in a court proceeding. The owner has the right to demand compensation for use from the user for the period of illegal use, usually in the amount of the market rent.

If the user (e.g., former tenant) does not vacate the apartment even after an enforceable court decision (order or judgment) for eviction has been issued, the owner can request that the eviction be carried out through an enforcement procedure with the assistance of a court bailiff (eviction). The compensation for use can be claimed through a lawsuit in a legal proceeding.

For representation in the process related to the termination of a rental relationship and eviction of an apartment or single-family house, as well as the payment of compensation for use, contact attorney Jurij Kutnjak and ensure you receive appropriate legal assistance.

Rental agreement for commercial premises

With the entry into force of the amendment to the Housing Act on June 19, 2021, the Act on Business Buildings and Business Premises ceased to be in effect. However, it still applies to rental agreements concluded before June 19, 2021.

For rental agreements for commercial premises concluded after June 19, 2021, only the provisions of the Obligations Code regarding lease agreements apply, which regulate the legal position of the parties significantly differently than the mandatory provisions of the Act on Business Buildings and Business Premises, for example, regarding:

• minimum notice period (e.g., 1 year for indefinite-term contracts);
• termination of the rental agreement through a court procedure;
• possibility of assignment or termination of the rental agreement;
• conversion of a fixed-term contract into an indefinite-term contract;

 

Therefore, there are currently two legal regimes for existing rental relationships for commercial premises:

• For rental agreements concluded until June 19, 2021, the legal regime according to the provisions of the Act on Business Buildings and Business Premises (and, subordinately, the Obligations Code) still applies.
• For rental relationships or agreements concluded after June 19, 2021, only the general legal regime for lease agreements according to the provisions of the Obligations Code applies.

 

Entrust the conclusion of a sales or rental agreement for commercial premises to a legal expert. Avoid legal risks due to a lack of appropriate professional knowledge. Contact attorney Jurij Kutnjak and ensure you make the right choice for your case.