Renting an apartment or a house can be easy and hassle-free if you have a properly drafted lease agreement.
This legal document provides security for both parties, sets the rules, and determines how disputes will be resolved. Let’s take a look at what it should include and what to watch out for.
What is a lease agreement?
A lease agreement is a legal document that regulates the relationship between the landlord and the tenant. Although its content may be influenced by specific conditions and local laws, the basic elements are always the same. Sometimes one party or the other chooses a verbal agreement instead of a written contract. However, this approach can lead to unpleasant misunderstandings. Drafting a lease agreement is not complicated and can prevent many problems.
What should a lease agreement include?
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Parties to the agreement: Full names, permanent addresses, personal identification numbers, and ID card numbers of both landlord and tenant.
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Property description: A detailed specification of the rented property, including address, size, and layout.
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Duration of the lease: The lease may be concluded for a fixed or indefinite period.
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Rent and deposits: The amount of rent, the method of payment, and the conditions for any rent increase, as well as information about service charges and advance payments.
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Restrictions: Certain activity limitations, such as a ban on subletting or smoking.
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Security deposit: The deposit amount, which may not exceed three times the monthly rent. The deposit serves as security against unpaid rent or damages caused during the tenancy.
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Termination of the lease: Conditions for terminating the agreement and notice periods for both parties.
What to watch out for?
The landlord may include additional conditions defining the obligations of both parties, such as responsibility for repairs or property insurance. However, there are situations to avoid, as they could make the agreement invalid.
One common issue is the prohibition of pets. Even if a landlord does not want animals in their apartment, they cannot explicitly ban them in the agreement. However, they can refuse an applicant who already owns a pet.
Changes to the lease agreement
One of the most common changes is rent increases. This is only possible once a year and by a maximum of 20% over three years, and the tenant must agree to the increase in writing.
And what about services and unreasonable obligations?
The lease agreement should clearly state which services are provided by the landlord and which the tenant must arrange themselves. Landlords often try to include obligations they are not entitled to demand, such as requiring the tenant to replace flooring at the end of the lease. Such provisions are invalid. On the other hand, it is common for tenants to repaint the apartment at their own expense when moving out, depending on the length of their stay.
Handover protocol
It is also recommended to prepare a handover protocol. This document confirms what, apart from the rented property itself, is being handed over. It includes information about the current condition of the apartment, its furnishings, the state of meters (electricity, gas, water), and the number of keys provided. It is also advisable to take photographic documentation of the apartment’s condition.
Conclusion
Drafting a lease agreement is the key to a successful and trouble-free rental. Make sure the contract is detailed, clear, and protects the interests of both parties. If you have any doubts, don’t hesitate to consult experts who can help you avoid problems and ensure a smooth rental process. In such situations, we are here for you—we are happy to assist and explain everything in detail.
