Introduction: At Expat Law, we recognize the significance of clear tenancy understanding. In this blog post, we'll explore crucial facets of Greek rental law, shedding light on key elements such as lease duration, rent adjustments, deposits, repairs, and lease agreement termination.
Deposit and Warranty: Upon lease agreement signing, tenants typically submit a deposit (usually 1-2 months' rent) to assure landlords of their commitment. The deposit's specifics are agreed upon, and its return depends on meeting specified conditions. Expat Law conducts a thorough legal property check, reviewing tenancy agreements before the lease begins to determine deposit status.
Lease Duration: Greek law mandates a minimum 3-year lease for residential and new commercial leases. This commitment binds both landlords and tenants, even if an initial shorter or indefinite lease is agreed upon. This primarily affects landlords, emphasizing the need to define the lease's purpose and professional use. Exceptions exist for non-primary residence leases, allowing parties to freely determine the lease duration.
Declaration of Lease: Every landlord must electronically declare the lease on Taxisnet, offering vital information. Tenants must electronically accept the lease via the Taxisnet app, underscoring the need for a Tax Identification Number (TIN) for formal property rental.
Rent Adjustments: Greek lease terms flexibility allows parties to agree on a 3-year lease with monthly payments or annual increments. For leases under three years, particularly for primary residences, the absence of a rent adjustment agreement triggers an annual adjustment—calculated at 75% of the change in the consumer price index. In cases of near-zero or negative inflation rates, tenants can maintain the same rent for the three-year legally stipulated period.
Repairs and Maintenance: Greek lease agreements clearly outline obligations and rights regarding property repairs. Landlords handle necessary expenses for property preservation, while tenants cover ordinary repairs. Specific agreements may exempt landlords from property damage responsibilities, providing legal coverage for repair liabilities.
Termination of Lease Agreement: Contrary to misconceptions, tenants can't terminate a lease prematurely without completing the 3-year commitment. Even after the lease term expires, leaving before the 3-year period end allows landlords to demand remaining rents. Exceptions exist for early termination, emphasizing the need for clear agreements.
Grounds for Early Termination: Landlords can terminate a lease if the property is misused by the tenant. Failure to maintain the property as agreed or improper behavior towards other tenants gives the landlord the right to terminate the lease immediately. The landlord can also seek compensation for damages despite complaints. Termination rights also apply if security measures endanger the tenant's health.
Upon lease termination, the relationship ends for the future, and prepaid rent beyond the termination is refunded.
Conclusion: Renting property in Greece demands a deep understanding of legal nuances for a fair and secure agreement. Expat Law's expertise ensures a confident leasing journey. Contact us for personalized legal assistance and a smooth Greek property rental experience.