Lawyer reveals: 5 situations where tenants need protection

Head of Legal at Rendin, Lia Siht, states that fortunately, these situations are not everyday occurrences. However, they are some of the most common examples from which participants in the rental market can learn. “When the evidence shows us that a landlord's claims are exaggerated or even baseless, we absolutely support the tenant. We engage with both parties to clarify the facts,” she explains.

When asked why such situations arise in the first place, Lia Siht says that it’s usually due to the landlord's lack of knowledge or limited information. That said, she acknowledges that sometimes personal self-interest is also a factor.

"When looking at different issues more broadly, the responsible party should always do their best to resolve the situation," explains Siht.

“We have repeatedly encountered situations where a tenant has caused property damage, and the landlord expects the tenant not only to restore it to its original condition but also to make it better than it was before,” says Rendin’s Head of Legal. “The tenant is responsible for compensating for or repairing the damage they caused, but they are certainly not obligated to improve the property in any way,” she adds.

Lia Siht shares an example from last year where a landlord rented out an apartment that was already quite old and in poor condition. There was nothing particularly unusual about the state of the rental property itself. However, what made this case unique was that the landlord filed a damage claim against the tenant, trying to renovate the property at the tenant’s expense. Among other things, the claim included a demand to fully replace kitchen furniture dating back to the early 1990s.

“In reality, this claim turned out to be largely unfounded. There were some minor damages, but they were nowhere near the extent of what the landlord was seeking. The decision was greatly aided by the handover report, which, alongside the lease agreement, is a crucial rental document,” Siht explains.

The handover report is prepared by the landlord and confirmed by the tenant at both the start and end of the lease. A proper report includes information about the rental property’s items, recent photos, detailed descriptions, and the latest electricity and water meter readings.

Rendin’s Head of Legal summarizes the issue and reiterates: “If damage does occur but the item’s condition was already poor, the landlord can only request reasonable compensation. First, it must be proportional to the tenant’s responsibility. Second, compensation cannot be used to demand improvements at the tenant’s expense. For instance, if a piece of furniture that’s several decades old is damaged, it cannot be replaced with a brand-new, modern item at the tenant’s cost.”

When a landlord rents out an apartment equipped with appliances, they are responsible for ensuring these items function properly and are replaced when they wear out. The same applies to all technical systems. “Some landlords believe that issues like a worn-out washing machine or a broken ventilation system should be handled by the tenant,” explains Lia Siht. “In such cases, we need to communicate with both parties to clarify their rights and responsibilities toward each other.”

Generally, such situations are not the tenant's fault. Natural wear and tear and depreciation are inevitable phenomena that every landlord must consider. Various malfunctions are bound to happen sooner or later.

“These issues should always be addressed by the landlord as quickly as possible. First, to ensure the tenant has the condition of the rental property that was agreed upon through the rental documents. Second, to prevent the problem(s) from worsening,” advises Rendin’s Head of Legal. She adds that if the tenant lacks habitable and contractually agreed-upon conditions, they have grounds to terminate the lease extraordinarily.

Siht provides a couple of examples from Rendin’s experience that have been valid reasons for early lease termination. “In the first case, the temperature in the living space was too low because the heating system was not functioning properly. According to the law, the normal minimum room temperature in a heated living space, whether from a district heating network or a building's boiler system, is 18 degrees Celsius,” she explains.

“In the second case, harmful mold spread in the living space due to a combination of moisture and heat, as the ventilation system was not functioning properly. The mold was so extensive that it damaged even soft furniture and the tenant's personal belongings and clothes in their wardrobe,” she describes.

The Law of Obligations stipulates that, in the case of a termless rental agreement, the landlord can increase the rent only once a year.

In the case of a fixed-term lease, it depends on the duration of the agreement. If the lease is for less than three years, the rent can only be increased after the lease ends, when a new agreement is signed. If the lease is for at least three years, the rent can be increased at the completion of each year.

“A confusing situation reached our desk through a tenant, where the parties signed a termless rental agreement on the Rendin platform, but the landlord added a special condition stating that it was a one-year fixed-term lease. This is a violation of our terms and conditions,” says Siht. “In addition, the landlord wanted to raise the rent during the term. As you can already infer from the previous introduction, yes, this is illegal behavior.”

“This case has several important lessons. Every tenant should carefully check the contents of the lease they are signing, what the agreements are, and if there are any special conditions. If something seems unclear, the tenant should immediately clarify it with the landlord,” advises Rendin’s Head of Legal.

Special conditions in a lease agreement can include provisions that are not explicitly stated in the standard terms of the contract. These conditions must align with the rest of the agreement and the Law of Obligations. In other words, they should be fair and balanced from the perspective of both parties.

Siht provides examples of some controversial cases that have reached the desks of Rendin’s legal experts. “The first and most common unfair special condition is that the landlord has the right to terminate the lease with one month’s notice. In reality, for a termless lease agreement, the landlord must give three months' notice for a regular termination,” she says.

“This kind of condition is more harmful to the tenant than what the law prescribes. Agreements that do not comply with the law are void in case of (court) disputes and give the tenant the upper hand over the landlord. This means that, in the case of such an agreement, the tenant can terminate the lease with one month’s notice, but the landlord cannot,” explains Siht.

“Secondly, landlords often add a clause to the agreement stating that they have the right to visit the property without prior approval. In reality, a landlord can only visit the residential premises if it has been previously coordinated with the tenant and within a reasonable notice period,” emphasizes the lawyer.

“This issue is partly related to the Euribor, whose sharp rise last year affected almost all of us,” begins Lia Siht. “We encountered cases where the monthly utility bills for tenants increased drastically. The reason for this was the housing association’s loan payments related to the renovation fund,” she continues.

A tenant must tolerate reasonable fluctuations, such as price increases from waste collection or water service providers. However, the tenant is not required to tolerate 3-4 times increases, such as an increase in the housing association’s loan payment from 23 euros to 150 euros. “Such changes exceed the limit of reasonableness,” assesses Siht.

What could be the solution? “The law allows the parties to choose who will pay for the renovation fund and loan payments. If these amounts have increased significantly over time and the tenant has been the payer previously, it is entirely reasonable for the landlord to take over the payments going forward. Additionally, the parties can agree on a proportion that would be more balanced compared to the initial arrangement,” she suggests.

“If mutual understanding is not reached, the tenant has the right to terminate the lease early, as the obligation to tolerate has exceeded reasonable limits for them.”