The lease contract is a specific agreement signed between two sides, specifying the terms and details according to which a property is rented to be used, for a certain period and for a certain amount of money.
There should always be a written contract between tenants and landlords. RentGuard offers you updated legal information and stipulations on the lease contract.
Table of contents
Why is the lease contract important?
We strongly advice the existence of a lease contract between the sides. As a landlord, you have a better control of technical issues as they are stipulated in written and the tenant accepted.
The contract will also include concise information like monthly rent, schedule of payments, various aspects regarding the maintenance of the property. While having a valid contract, the landlord can enter the premises if he considers some of the contract mentions were breached.
Should we register the lease contract?
The answer is “no”. According to Romanian law the contract’s registration at the notary or otherwise is not mandatory, moreover it is not mandatory at all if the sides have an agreement. Any contract is valid as long as it has both sides signatures.
Since 2018, landlords no longer need to register the contract at the National Agency of Fiscal Administration; nevertheless, they have to declare all incomes from property renting by filling in the yearly unique fiscal statement.
What happens if the landlords don’t declare their incomes from rented properties?
Landlords pay yearly a tax of 10% from the incoming rent (calculated on 60% of the rent amount, 40% representing deductible flat costs) and they have to fill in the yearly unique fiscal statement by May 25th.
In case of undeclared rent taxes, a landlord risk to be charged of tax evasion and getting a criminal background.
What should the lease contract cover?
The lease contract should include at least:
– Contract date, name and type
– Identification data of tenant and landlord
– The object of the contract
– Date of property delivery and status
– Rent amount, way of payment, schedule, warranty
– Obligations of landlord and tenant
– Liability of the parties, disputes, other clauses
– Signatures of both sides
Which are the rights and obligations of the landlord?
The landlord (locator) has the following obligations, even if not mentioned in a contract:
– To hand over the property
– To maintain the good in a proper state of use throughout the lease
– To ensure to the tenant the quiet and useful use of the property throughout the lease (the landlord cannot enter over the tenant when he wishes)
The rights of the landlord are:
– To receive the rent under the conditions and terms stipulated in this contract
– To control the execution of the tenant’s obligations and compliance with the rental conditions, having the right to ascertain, monthly or whenever necessary and without hindering the use of the property by the tenant, the integrity of the property subject to the contract and whether it is used according to the established destination
– To unilaterally terminate the contract, under well-justified conditions (consolidation works, exterior design) provided that the lessee is notified, at least 60 days before the date on which the termination is to take legal effect.
Which are the rights and obligations of the tenant?
The tenant has the following main obligations:
– To receive the rented property
– To pay the rent in the amount and on the term established in the contract
– To use the good with prudence and diligence
– To return the good upon termination, for any reason, of the contract
If the tenant changes the property, changes its destination or causes damage to the landlord, the landlord can claim damages and, where appropriate, termination of the contract, according to the civil code.
The tenant has the following main rights:
– The tenant has the right to receive the rented real estate and its accessories in a suitable condition to be used according to the destination established according to the contract and to have access to the utilities that he will pay separately from the rent.
Which are the usual problems that might appear during the lease contract?
Numerous open discussions, problems, quarrels or even more serious things can occur between the landlord and the tenant. We will not go into such details, but both landlords and tenants must be well aware of their rights and obligations before signing a lease in order to know how to react in the event of unforeseen situations.
- What do you do as a landlord when the tenant causes damage to the property, which he does not want to pay?
- What do you do when you are a tenant and find out that the landlord entered the building when you left, without your consent?
- How can the 2 parties involved resolve any misunderstanding amicably, without the intervention of official bodies or third parties?
In most cases, disputes arise in the event of damage. In this case the tenants must notify the landlords. If the fault occurs due to the tenant, the tenant must pay. If other faults occur (the fridge has broken down, the heating system, the boiler, etc.), the repairs will be provided by the owner as soon as possible.
How a landlord can check his tenant?
Because conflictual issues might appear pretty often, we have created an effective system for verifying potential tenants. This tenant verification service takes place through the RentGuard platform, the only online tenant verification service in Romania.
See more about RentGuard by reading the following articles:
RentuGuard – real estate tenant check service briefly explained
Tenant screening by landlord. Why should it be done?
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