New ”Good Rental Practices” law
On July 1, 2023, the Good Rental Practices Act came into effect. This law includes national rules that standardize what constitutes good landlordism at a minimum. Failure to comply with the law can be punished with heavy fines.
Most of the rules apply primarily to new leases entered into after July 1, 2023. In addition, municipalities are also given the option of establishing a local rental permit that imposes additional requirements on landlords.
The following rules are covered:
– Preventing and countering discrimination and harassment: A clear and transparent selection process must be used.
– Maximum deposit: The deposit may not exceed 2 times the basic rent. The landlord must return the security deposit to the tenant within 14 days after the end of the tenancy. If there are damages in the property or payments still to be settled, the landlord has up to 30 days after termination of tenancy to refund the remaining amount of the deposit.
– Service charges other than those regulated by Articles 259 and 261 of Book 7 of the Civil Code are not allowed.
– Written recording of the rental agreement: Based on the rules of good landlordship, the verbally agreed rental agreement must be recorded in writing. This is to prevent legal uncertainty in the case of an oral agreement. This also applies to existing rental agreements.
– Disclosure obligation: Landlords and intermediaries must inform tenants in writing about: – Tenant’s rights and obligations; – The amount of the deposit and the terms of repayment; – The amount of the advance payment of service charges; – The contact details of the municipal hotline for complaints and undesirable rental behavior; – The contact details of the contact point where a tenant can go in case of questions or problems related to the leased property.
– Ban on charging double mediation fees: Rental intermediaries may not charge mediation fees to both tenant and landlord of a property.
– Special rules for renting accommodation to migrant workers: Rental agreement must be recorded separately from the employment contract. Provision of information in the language preferred by the labor migrant.
– Rental permit: Local additional rules may apply. Municipalities may introduce a rental ordinance.
– Enforcement, sanctions and disclosure: To facilitate this, municipalities establish a hotline for anonymous, free of charge complaints about undesirable rental behavior.
If you would like more information please contact our office.