Evicting a tenant from an apartment, when is it possible and how?

29/08/2024

Do you know the situations where you cannot evict a tenant from an apartment? Here are ten essential facts every landlord and tenant should know about rental agreements. For short-term leases, a tenant can sublease the entire apartment or part of it—but only with the landlord's explicit written consent. Want to know how to handle contracts with difficult tenants? Evicting a tenant: when is it permissible, and how should you proceed? Keep reading to find out.

The apartment rental market is booming, largely because rising mortgage interest rates have prevented many potential homeowners from securing loans. As a result, more and more individuals are turning to renting as their housing solution. This makes it even more critical for landlords and tenants to stay informed about their rights and responsibilities.

In this article, we'll cover:

  • When tenants are allowed to sublease to third parties.
  • The timeline for landlords to evict tenants who fail to pay rent.
  • Why including terms for the return of overpayments in lease agreements is crucial.
  • The complications that arise in the absence of a written lease agreement.
  • The steep penalties for landlords failing to register their rental income with the tax office.
  • And much more.

If you want to navigate the rental process more effectively—whether you're leasing or renting—this guide has everything you need to know.

1. How to conclude a contract

Today, there are two ways to legally treat a tenancy relationship. The first one is the regulation according to the Civil Code and the second one is the regulation according to the Short-Term Rental Act. The law defines a short-term lease for a maximum of two years. It can be extended for the same period a maximum of two times in a row. While the Civil Code protects considerably more tenants, the second law provides more options for landlords. For example, it allows them to more flexibly terminate the tenancy relationship with the tenant, apply shorter notice periods, or agree on another reason for termination in the contract, which is not permitted by the Civil Code.

In the case of the Civil Code, the notice period is at least three months, in the case of the Short-Term Rental Act, it must not be shorter than one month, in some cases determined by this Act, not even shorter than 15 days. The Act on short-term rent even in strictly defined cases gives both the lessor and the lessee the possibility to withdraw from the lease contract unilaterally, in contrast to the Civil Code, which does not allow this method of terminating the apartment lease.

In connection with the short-term lease, it is necessary to draw attention to certain specific requirements of the lease agreement, which are required by the Act on short-term lease. "The lease agreement must be in written form, in contrast to the regulation according to the Civil Code, and the contracting parties must provide each other with at least one copy. Such a lease agreement must, in addition to other essential and legally required data, also contain declarations by the tenant that he is aware of the fact that the lease agreement is concluded according to the Act on short-term rental.

The landlord is also obliged to fulfill his obligation to register according to the Income Tax Act. In the event that the lessor fails to fulfill his obligation to register for income tax with the relevant tax administrator, the apartment lease would be governed by the provisions of the Act on Short-Term Leases, but with the exception of grounds for termination by the lessor, his option to withdraw from the rental agreement and the option to apply for the invalidity of the termination short-term apartment rental in court.

2. Persons protected from eviction

There are cases in which the Civil Code grants increased protection to tenants in tenancy relationships. This is, for example, a tenant who takes care of a minor child or an infirm person who are members of his household, or a tenant in material need for objective reasons.

"If the lessor were to terminate the apartment lease in any of the cases mentioned, for example due to non-payment of rent by the lessee, such a lessee would be entitled to housing compensation. In the event that the lessor's circumstances allow it, a lessee caring for a minor child or an infirm person would have to be provided with a replacement apartment. However, this only applies if the lease agreement was concluded in accordance with the Civil Code. The lessor, who concluded a lease agreement according to the Act on short-term rent, does not have this obligation to provide housing compensation in the event of termination of the lease.

3. Amount of rent

The amount of rent is a mandatory part of the rental agreement, while the amount of the rent itself must be stated in the agreement, as well as the amount of payments for services that are connected with the use of the apartment, i.e. payments for electricity, gas, central heating, hot water supply, lighting or cleaning common areas, use of elevators and the like. Alternatively, instead of the amount of such payments, the method of their calculation may be stated. Among other things, this prevents inconsistencies in the billing of arrears or overpayments of the tenant for the aforementioned services.

From the landlord's point of view, it is better if he agrees with the tenant to pay the rent in advance, that is, always in the month that precedes the month for which the payment is made. "If the tenant does not pay the rent or payment for the services provided with the use of the apartment within five days after its due date, he is obliged to pay the landlord a late fee. The amount of the late fee is determined by a government regulation and is 0.5 per thousand of the amount owed for each day of delay. however, at least 0.83 euros for every month of delay that has started," says the lawyer.

4. To whom the overpayments go

At a time when words like inflation and energy crisis are thrown around a lot, it's only natural that people - including renters - try to save. In this context, tenants often ask themselves what happens if the apartment is overpaid for a certain period, i.e. the amount of payments for services connected with the use of the apartment will be higher than the actual consumption. Should the landlord return this overpayment to the tenant?

In such cases, as well as in cases where the lessee incurs an arrears, the content of the rental agreement concluded between the lessee and the lessor is decisive. "I can unequivocally recommend that the parties in the rental agreement agree on the exact terms and procedure for the billing of the payments in question, as well as the method of payment of any overpayments or arrears.

5. Restrictions on use

Although avoiding a certain action in the case of a lease might seem obvious at first glance, it may not be so. This is, for example, a situation where a tenant would like to sublease an apartment or room to a third party. Again, the agreed content of the rental agreement is decisive. "If the tenant was not expressly prohibited from doing so in the lease agreement, then from the point of view of the Civil Code, he has the right to do so. On the contrary, in the case of a short-term lease, the tenant is entitled to sublease the apartment or part of it only with the written consent of the landlord, and for the longest period of the lease.

In addition to the impossibility of subletting the apartment to third parties, it is good to agree on other restrictions in the contract. For example, a ban on smoking or keeping pets. In addition, according to the lawyer, it is also advisable to agree in the lease agreement when and how the landlord, as the owner of the apartment, will be able to carry out visits in the presence of the tenant in order to check his condition.

6. Property inventory

"In order to prevent future complications and misunderstandings, I recommend that the lease agreement definitely include a description of the condition of the apartment, its accessories and equipment. For example, the handover and acceptance protocol, which is drawn up together with the lease agreement and, in addition to the status of the electricity, heat, gas meters, can be used for this purpose and water may contain the just-mentioned description of the equipment and condition of the apartment."

A carefully written handover and acceptance protocol can prevent problems and misunderstandings when terminating the lease or applying liability for damage, both on the part of the lessor and on the part of the lessee. It is advisable to record the condition of the apartment and its equipment at the time of the conclusion of the rental agreement by making photo documentation.

7. How to avoid unpaid obligations

In order for the lessor to avoid possible losses due to unpaid rent, energy costs or due to damage to the apartment or its equipment, part of the rental agreement should definitely include an agreement on the payment of a security deposit, respectively a deposit by the tenant, which is normally in the amount of one month's rent and is paid at conclusion of the lease agreement. The deposit serves to protect the lessor, respectively the owner of the apartment, and serves to compensate for any unpaid obligations of the tenant or to pay for damage caused by the tenant to the apartment or its equipment.

"If the lessee's outstanding liability or the amount of damage incurred exceeds the amount of the deposit and the lessee does not want to voluntarily pay the difference, while it is good to ask him to do so in writing, the lessor must address his claim for payment or compensation to the competent court, " warns the lawyer.

8. Probable need

Resolving any disputes that arise without the existence of a written rental agreement is an uncertain long-haul. Without it, both the lessor and the lessee often find themselves in a state of legal uncertainty and lack of evidence. In the case of court proceedings, the lessor as well as the lessee must prove their claims in a credible manner, which is often very difficult or impossible in the absence of a written lease agreement.

On the basis of a well-drafted written lease agreement, it is possible to easily remove doubts about the essential facts and conditions of the lease, such as the agreed term of the lease, the amount of the agreed rent and payments for services provided together with the use of the apartment, as well as about possible restrictions, rights and obligations of the contracting parties . "The Civil Code, in contrast to the Act on short-term rent, does not specify that the rental agreement must be in writing, but I certainly do not recommend entering into a rental relationship without a written agreement under any circumstances, whether as a landlord or a tenant.

9. Duty to the state

"If a person has rented real estate on the basis of a concluded rental agreement, while it is not a real estate rental carried out on the basis of a trade license, the income obtained from such a rental is considered taxable income, which must be declared in the tax return."

The lessor is obliged to register with the relevant tax administrator by the end of the calendar month after the end of the month in which he rented the property on the territory of the Slovak Republic. In case of non-registration at the tax office, the fine can reach up to 20,000 euros. Registration applies not only to persons who rent the entire property, but also a part of it. Income from real estate rental is exempt from income tax up to 500 euros for the relevant tax period.

10. Invalidity of contract

The lawyer recommends placing great emphasis on the content of the rental agreement, especially with regard to the content of the agreement exhaustively determined by law. Otherwise, the absence of mandatory requirements of the rental agreement may render it invalid. Such requirements include, for example, the identification of the contracting parties through their personal data, the signatures of the contracting parties, the designation, or the determination of the subject of the lease, i.e. the identification of the apartment, as well as the scope of use of the apartment.

In addition, the rental agreement must contain the amount of rent, as well as payment for services connected with the use of the apartment or the method of their calculation. According to the Act on short-term apartment rental, the lease agreement must contain more mandatory details than in the case of legislation according to the Civil Code. With regard to the nature and individuality of rental relationships in Košice City Center Rental Apartments, a written rental agreement is always drawn up by a lawyer due to greater legal certainty of the contracting parties.

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