With the housing crisis worsening in Greece, many are wondering about the legal framework surrounding residential leases. Who does the law ultimately protect in Greece? The property owner or the tenant? In this text, we will explore how the legislator’s intention is to protect both parties by providing rights and creating corresponding obligations for both the owner and the tenant, aiming to balance their often opposing interests.

1.What is the duration of a property lease?

After several laws regarding the duration of property leases and the (justified) disruption caused, the legislator decided to proceed as follows: Today, the lease of a property used as a residence has a legally mandated duration of at least 3 years. This means that the tenant can stay in the property for at least 3 years (unless the lease has been agreed upon for a longer period).

The above applies if the property lease was agreed upon for an indefinite period or even if it was agreed for a period shorter than 3 years (e.g., for 2 years with a right to renew the lease afterward). For leases lasting more than 9 years, the law requires them to be drawn up with a notarial deed and for the contract to be registered with the Mortgage Registry/Cadastre, just as it applies to property transfers.

The law also stipulates that if the lease was agreed upon for a specific period and, after it has expired, the tenant remains in the property with the owner’s consent, then the lease is considered to have been renewed for an indefinite period. However, the property owner must not have genuinely opposed the lease—if they have repeatedly notified the tenant about the lease’s expiration/adjustment of rent, then the lease is not considered to be renewed by law.

2.What applies to the furniture in the property?

This issue primarily depends on the agreement between the parties—if the furniture was already in the property before it was rented, it belongs to the owner, and the tenant is not entitled to remove it upon leaving the property. Conversely, if the furniture belongs to the tenant, they are entitled to use it without causing damage to the property and must remove it from the property when the lease ends (otherwise, it will be handed over to a custodian responsible for its safekeeping).

The law grants the lessor the right to establish a lien on all movable items brought by the tenant (and those residing with them) into the property during the lease. This means that if the tenant fails to meet their obligations to the lessor, the lessor has the right to auction off the movable items (mainly the tenant’s furniture) and use the proceeds to cover their financial claims against the tenant.

This lien covers the lessor’s claims against the tenant for overdue rent (including shared expenses, electricity, and water bills). It also includes legal expenses that may be required for evicting the tenant from the property if they refuse to vacate it when the lease expires, as well as compensation for use owed by the tenant for the time they remain in the property after the lease has expired. The other aspects of the lien are detailed in our related text, where we present the concept of liens in Greek law.

3.What are the obligations of the property owner?

Naturally, the lease agreement generates obligations for the lessor towards the tenant for the duration of the lease. Specifically, the lessor is legally obligated to:

• Deliver the property to the tenant in a condition suitable for the agreed use.
• Provide the tenant with a property free from actual/legal defects.
• Maintain the property suitable for the needs of the lease throughout its duration.
• Pay the taxes and regular charges associated with the property. This includes paying the ENFIA tax for the property, municipal fees imposed, and the Real Estate Transfer Tax (which has been abolished as of 1/1/2024 regarding property transfers).
• Repair occasional damages to the property (e.g., a water heater leak, falling plaster, etc.).
• Inform the tenant of any defects in the property that could endanger their life/health.
• Reimburse the tenant for expenses they incurred on behalf of the property, provided these expenses were necessary (if the expenses were luxurious/excessive, the tenant is not entitled to request reimbursement from the lessor).

4.What are the obligations of the tenant?

Similarly to the lessor, the tenant also has obligations towards them, primarily concerning the leased property. More specifically, the tenant is legally required to:

• Pay the agreed rent to the lessor. The term “rent” also includes the building’s common expenses as well as the payment of electricity and water bills related to the rented property.
• Accept the property from the lessor to prevent it from falling into disuse and developing defects due to lack of maintenance.
• Keep the property in good condition and generally suitable for the agreed use, especially if a business is operating on the property, where different rules may apply.
• Allow the lessor to visit the property from time to time to check its condition, as this is often stated as a term in lease agreements.
• Promptly inform the property owner of any damages that occur and need repair. If the tenant neglects to notify the owner or does so after a significant delay, they might be held responsible for the cost of the damages.
• Respect other residents of the building (if there are any) and avoid causing conflicts or problems with their behavior within the property.
• Comply with any other obligations agreed upon with the property owner, which should be included in the private agreement signed by the parties.

5.Can the tenant sublet the property to another person?

Subletting the property to a third party is generally allowed, provided it has not been explicitly prohibited in the agreement between the parties. However, the relationship between the original tenant and the lessor remains as it was at the start of the primary lease. It is different if the tenant simply grants the use of the property to a third party—in this case, the tenant is still responsible for paying the rent, and nothing changes in the lease agreement.

The law states that if the original tenant owes a significant amount of rent and is evicted from the property by the lessor for any reason, the subtenant will also be evicted, regardless of whether the subtenant has fulfilled their obligations. Additionally, the original tenant is liable to the owner for any damages caused by the subtenant to the property, regardless of the original tenant’s fault for the subtenant’s actions.

Of course, the subtenant has the same obligations to the original tenant as previously mentioned, and vice versa regarding the original tenant’s obligations. If the sublease was made in violation of the agreement between the tenant and the lessor, the property lease (and consequently the sublease) can be terminated, as such an action is considered by law to be misuse of the property and justifies the lessor’s termination of the lease.

6.What options does the tenant have if the property has defects?

Since it’s not uncommon for a rented property to have defects, the law provides certain rights to the tenant to protect their interests against the landlord. According to the law, the tenant is entitled to:

• Request the landlord to fix the defect in the property, provided the repair is possible. If the landlord unjustifiably refuses to fix the defect, the tenant may withhold the rent until the defect is corrected.
• Fix the defect themselves (the tenant) and seek reimbursement from the landlord for the expenses incurred due to the repair.
• Request a rent reduction from the landlord to the extent that the defect affects the value of the property. If the defect is so severe that it renders the property unusable, the tenant may refuse to pay the entire rent.
• Claim compensation from the landlord for the damages they suffered due to the defect (e.g., the inability to use the property for a certain period or having to stay in another property in the meantime).
• Terminate the lease even before its expiration if the defect is significant enough to be considered a serious reason justifying the early termination of the lease (this always depends on the circumstances).
• If the tenant exercises one of the above rights, they are not prevented by law from simultaneously exercising any of the other rights, provided that the exercise of one right does not fully cover their damages or claim against the landlord.

7.When can a lease be terminated?

The topic of termination and how the law distinguishes it was discussed in another text regarding employment contracts, so you can refer to that for additional information. Concerning the termination of a property lease, the law recognizes five reasons for which the termination of such an agreement is allowed. Therefore, the termination by either the tenant or the landlord must include at least one of the reasons listed below to be valid; otherwise, it will have no legal effect.

Specifically, the tenant is allowed to terminate the lease if the landlord does not grant them the use of the property immediately after the lease agreement is signed (or on the date when the property is supposed to be delivered). The landlord can also terminate the lease if the tenant delays the payment of rent (as defined above) for a significant period, generally two months or more, without a justified reason.

On the other hand, the tenant can terminate the lease if they suffer significant harm to their life or health due to the property’s use, especially if the property had a defect that caused this harm. The landlord, in contrast, is entitled to terminate the lease if the tenant is misusing the property and does not comply despite the landlord’s explicit objections. Finally, both parties can terminate the lease if a serious reason arises, which is deemed by law or by a court sufficient to end the lease even before its expiration.

8.What happens if the property is sold during the lease?

If the property is sold to a third-party buyer by the owner while the lease is still in effect, the law provides protections for the tenant under certain conditions. Specifically, the lease of the property must be proven with a document of certified date—either a private agreement that clearly indicates the date or, ideally, a notarized document that has been officially certified, leaving no doubt about the date of its creation.

If this condition is met, the new buyer who acquires the property becomes the landlord of the property, and the tenant must pay rent to this new owner. Naturally, the new landlord will also be bound by the obligations previously mentioned. The new landlord is required to respect the lease’s duration and can only terminate it for one of the reasons strictly provided by law, as discussed earlier.

Regarding rent payments that were overdue before the property’s sale, the former owner (and previous landlord) has the right to claim those from the tenant, as the buyer was not the landlord before the sale took place. If the property housed a business or store, the law protects the tenant for six months, as explained in another text about commercial lease conditions.

9.Can the tenant stay in the property after the lease ends?

When the lease expires, the tenant is obligated to vacate the property and return it to the landlord without any personal items they brought into it. If, however, the tenant remains in the property beyond that point, they will owe a usage fee—a monthly amount equivalent to the rent they paid during the lease.

In addition to this fee, the landlord has the right to demand compensation for any further damages not covered by the usage fee. This compensation could include the rent the landlord could have earned if they had rented out the property immediately after the previous tenant’s departure without delay. The same applies to any maintenance expenses required for the property.

These rules also apply if the property was subleased and the subtenant refuses to return it to the landlord, even though the lease has ended. It is important to note that there is no need for two separate court orders to evict both the tenant and the subtenant if subleasing has occurred. A single court order suffices to evict both the tenant and anyone claiming rights through them (such as the subtenant or their family members).

10.When can a civil servant terminate the lease?

Due to the difficulties many civil servants face in finding housing when frequently transferred to islands or border areas, the law grants civil servants the right to terminate a property lease as if it were an indefinite-term lease when they are transferred to another region or city. This means that they do not have to meet the strict requirements imposed by the law on fixed-term leases.

Specifically, the civil servant can terminate the lease at least 15 days before the end of the relevant month during which they plan to leave the property (since most leases are arranged on a monthly or annual basis). Of course, their family members can also leave, even if they are not civil servants themselves, in accordance with the law’s principle of leniency towards the tenant.

For these provisions to apply, the transfer or reassignment of the civil servant must have officially taken place—meaning that the administrative decision must have been issued, communicated to the civil servant, and published in the Government Gazette. To comply with legal requirements, the civil servant must inform the landlord about their upcoming transfer (and may need to provide the transfer document if requested).

Next to the client and his needs.

Athina Kontogianni-Lawyer

The above does not constitute legal advice, and no responsibility is assumed for it. For more information, please contact us.