Renting a property: Shall we see some useful information?

Renting a property: Shall we see some useful information?

1.What is the most common use of lease agreements in practice?

Practically, many leases today concern properties (mostly apartments), which are governed by the general provisions of the Civil Code and the specific laws concerning them, such as Law 1703/1987 with all its relevant amendments. However, professional leasing is also common, which is governed by a different legislative framework, specifically by Presidential Decree 34/1995.

2.How is a lease agreement concluded?

The Civil Code does not require a specific form for a lease agreement. This means that it can even be drawn up orally with the agreement of the parties or by means of a private document. It is advisable, however, for the lease to be concluded in writing by means of a private document of the parties to clearly record the terms they wish to include in the lease document and for evidential purposes. If the lease is drawn up in writing, the lessor must then post the lease document to the ‘myAADE’ service, and the lessee must accept it (based on the relevant decision of the director of AADE since 2018).

An exception is introduced regarding leases exceeding nine years in duration, which must be drawn up by a notarial deed and transferred to the relevant mortgage office or land registry office of the place where the property is located (so that in case of sale of the property by the lessor to a third party, the lessee is protected from possible eviction from the property by the new owner).

3.What is the duration of a contractual lease of property?

Generally, a lease as a legal relationship can be agreed for a fixed or indefinite term (the matter is practically interesting for the deadlines required for the termination of the lease by the parties). The lease of property has a minimum duration of 3 years by law. This means that even if a shorter duration than the three-year period is agreed, the lessor is not entitled to terminate the lease due to its duration, but only if three years have elapsed from the date of agreement.

4.My landlord is evicting me for personal use.What applies?

Legally, personal use has been abolished following the expiration of Law 1703/1987 which provided for it, and therefore it is no longer provided as a reason for the tenant’s eviction from the lease. However, an exception is introduced regarding the issue for personal use due to professional use, which is still provided for by law, subject to the additional condition that the owner/lessor and his relatives do not have sufficient space within the city where the property is located to accommodate the professional business.

5.What does the concept of rent include?

Rent is defined as the consideration given by the tenant to acquire possession of the property for the duration of the lease agreement. It can be agreed upon in cash, in kind, or even in a different manner (e.g., percentages of the profits of the business that will be established on the property, if it’s a commercial lease). Here are three main points of significance:

  • In the rent (or otherwise known as “lease”), other expenses are included. These include the common expenses of the building if the property is located in an apartment building, electricity and water bills, as well as the stamp duty agreed upon for the conclusion of the lease agreement (which, depending on the agreement of the parties, is borne either by the lessor or the lessee).
  • However, property taxes and fees (e.g., ENFIA and municipal taxes that must be paid) are not included in the rent (they are the lessor’s obligation).
  • The rent itself in the narrow sense of the term (i.e., only the lease) must now be paid by the tenant to the lessor’s bank account and not in cash (this is also done for tax purposes).

6.My tenant owes several months’ rent.What options do I have?

In this case, the lessor has several options depending on whether:

  • he/she requests the return of the leased property from the court along with the overdue rents, or
  • he/she only requests the return of the overdue rents.

Therefore, he/she may file a separate lawsuit to claim together with the rents the entire lease (= to evict the tenant from the property)

or seek from the court the issuance of an order for the return of the rent (through a summary procedure without witnesses according to Articles 623 and 624 of the Code of Civil Procedure).

7.What are the rights of the lessee in general?

Depending on whether the use of the property was delivered to the lessee or not, or if it actually presents defects (as well as the lack of agreed-upon qualities), the lessee has the following rights:

  • Claim for delivery of the property to him (or for the correction of the defect if there is one).
  • Right to reduce or not pay the rent, depending of course on the impact of the defect or the non-provision of use to the lessee.
  • Right to compensation for non-performance of the contract (here it is presupposed that the defect existed already at the time of drafting the contract or that the lessor was aware of the defect and concealed it).
  • Right to undertake himself the rectification of the defect and to claim from the lessor the relevant expenses (this presupposes either that the defect appeared after the conclusion of the lease, or that the lessee notified the lessor of the defect and the lessor disregarded it).
  • Right to terminate the lease (if the use of the property was not delivered to him or if it was delivered with significant defects), PROVIDED THAT the lessee has given a reasonable deadline to the lessor for the fulfillment of the provision, and the deadline has expired without action.

8.I am a public servant and I am constantly being transferred (= constantly looking for a new residence). Am I bound by the three-year lease?

No, as in the case where the lessee is a public servant (Civil Code 613), the provisions of the lease for an indefinite period apply for termination. Specifically, if the lease was agreed to be paid monthly, termination can be made 15 days before the end of the month and takes effect at the end of that month. Similarly, the same applies if the lease was agreed upon daily or weekly. It is worth mentioning that the concept of a public servant is broadly understood (e.g., judicial officer, police officer, educator), and if the lessee has a family, then the right to terminate the lease under the conditions mentioned can also be exercised by the lessee’s spouse for the unity of the family relationship.

9.The lease agreement was in the name of my spouse/partner and he/she passed away. Am I entitled to remain in the lease?

In this case, the use of the lease is inherited to the surviving spouse/partner who is entitled to terminate the lease at any time, provided that the termination is made at least 3 months before the expiration. It is necessary for the marriage/civil union to have been notified to the lessor in order for the above rights to be exercised, as well as the fact that the lease serves as a family residence (Civil Code 612).

10.How can I protect my rights against the lessor?

If the lessee takes possession of the property and either there are defects (of any kind) that need to be corrected, or the lessee has doubts about their existence, they can enter into the lease agreement with a so-called “reservation clause.” This is a clause in which the lessee declares that they accept to take possession of the property (as they actually do) but with a reservation of their legal rights arising from the lease against the lessor. This is useful so that the lessee’s acceptance of the property is not considered silent acceptance of the defects, and therefore they cannot later claim their correction from the lessor. Thus, the lessee secures their rights for the duration of the contract and will be able to exercise the rights mentioned above.

11.The previous tenant caused damages to the leased property during the lease. How long do I have to file a lawsuit?

For this specific claim, i.e., for compensation of the lessor against the tenant for damages caused to the leased property, a short statute of limitations applies, 6 months, after the lessor repossessed the property (= from the end of the lease contract and the tenant’s move). Therefore, within the 6-month period, the lessor must have already taken action to notify the tenant extrajudicially and later file a lawsuit against them, in order not to have their claim barred by prescription.

Next to the client and his needs.

Athina Kontogianni-Lawyer

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