Renting your first apartment is an important step in starting an independent life that assumes greater responsibility, including taking care of one’s own finances. Check out how Rendin can make renting safer.

You should first consider the essentials of your future rental home. “Perhaps the location and city district, proximity to your place of employment or school or the size and the number of rooms. You could then browse rental advertisements that correspond to your requirements in order to familiarise yourself with the current rental prices,” explains Lia Siht, Head of Legal at safe rental platform Rendin.

“You may learn through such background work that the level of prices is higher than you expected and may have to think of alternatives. For example, looking at other districts or finding a roommate to share the expenses with,” Siht says.

Siht adds that roommates may only be accommodated in the rental property with the owner's consent. "In such cases, the primary tenant remains responsible, unless all roommates are listed as co-tenants and signatories to the lease. When renting with friends, it would be wise to share responsibilities in addition to sharing the rental space," she advises.

"According to the Law of Obligations Act (§ 289), a tenant of a residential premises has the right to accommodate, without the landlord's consent, only their spouse, registered cohabitant, minor children, and disabled parents, provided that the lease agreement does not state otherwise," Siht explains.

• Where to start looking for a rental home? To find a suitable apartment, check out Rendin’s real estate portal or the Facebook group for renting without a deposit.

Before signing the first rental agreement, the tenant should evaluate their monthly solvency, meaning the income (salary, study allowance/scholarship, financial support from parents, etc.) and expenses (rent, utilities, transport, food, hobbies, etc.).

The main home-related aspects are rent and the related expenses, such as utilities, home Internet package, parking fees and so on. “It is generally recommended that the rental fee should make up a maximum of 30–40% of your monthly income. For example, when the tenant’s gross salary is 1000 euros per month, then home costs should remain between 300–400 euros,” Siht explains.

Utility costs may vary to a great extent – depending on the location, building and the size of the apartment. “Most landlords provide an overview of utility costs in the rental advertisement, but to be sure, you should ask to see some utility bills when you go and see the apartment. You should consider an additional 10–20% of reserve to avoid negative surprises, should service providers raise their prices,” Siht suggests.

According to Siht, the rental fee with utilities and other invoices should not exceed one half of your monthly expenses (or 60% at most).

“If the tenant has active loans and/or instalment payments, then these should be deducted from the monthly income as the very first thing so that you know the sum left after you have covered your loan obligations,” Siht says.

“Among other things, Rendin runs background checks on possible tenants, and we have lately noticed a trend that shows the attitude of some young people towards financial affairs. Despite their age, they have already accumulated quite a lot of loan obligations and instalment payments and also spend on gambling in online casinos,“ she describes.

All these additional obligations influence the ability to find and maintain a living space. “It is therefore necessary to stress that there needs to be a balance between expenses and income. Otherwise, the financial obligations will grow out of hand and after some additional (fast) loans, the person will have inconspicuously fallen into debt,“ Siht emphasises.

When looking for a rental home, be mindful of the amount of the initial fees for the tenant. Is there a deposit? Do you need to cover the agent and/or contract fee?

“These amounts may vary greatly. Let’s take an apartment with a monthly rental fee of 500 euros. If additional one-time fees are added when moving in, the tenant's costs can amount up to 1500 euros (one month's rent, deposit equal to one month's rent, broker's fee). You should also be aware that the Law of Obligations Act enables you to ask for a deposit in the amount of the rental fee for 1–3 months,“ the lawyer explains.

To save on costs, it is advisable for tenants to opt for renting without a deposit. “At Rendin, we have replaced the deposit with a small monthly fee, which amounts to 2.5% of the monthly rent. This allows tenants to keep initial rental costs low and save hundreds of euros. Additionally, we provide support to tenants throughout the rental process and offer impartial advice in case of disagreements between parties,“ describes Siht.

Siht adds that the tenant should plan a small amount of additional finances. “All prices have increased rapidly over the past year. The inflation rate is still high, and the next autumn-winter period of high heating bills is still to come. This means that you should collect some additional finances in order to cope better. Saving in small sums is already a good start,“ she advises.

“At Rendin, we interact daily with both tenants and landlords. As a result, we have a good understanding of what landlords consider necessary to ask from individuals interested in renting their properties,“ Siht says.

“Our first recommendation to possible tenants is to be active and open themselves. For example, a summarised self-description is a great opportunity to make initial contact. This should include a short personal introduction and an overview of your daily activities, such as your job, school, or hobbies,“ the Head of Legal of Rendin advises.

“In addition, the tenant could describe why this particular apartment suits them and specify the length of the rental period they are seeking. It's also important to mention who they plan to live with in the rental home (alone, with a partner, friend, pet, etc.),“ she adds.

“We also recommend considering these additional questions which may come up when talking to the landlord. For example, whether and for how long the prospective tenant has previously rented a home, or the reasons for moving from their current residence,“ she says.

Make sure to read the rental agreement thoroughly before signing it. For the sake of clarity, you can go through the contract with the landlord. There are no dumb questions – if something remains unclear, be sure to consult with the landlord. Open communication is an important prerequisite for building and maintaining a good rental relationship.

1. Type of rental agreement: fixed-term of termless

There are two types of rental agreements. A fixed-term agreement means that the contract enters into force and ends at a specific date. A termless agreement also enters into form at a specific time but has no agreed end date.

A termless rental agreement is more flexible than a fixed-term one because:

1. The tenant as well as the landlord can terminate the agreement ordinarily and unilaterally. It is necessary to inform the other party 3 months in advance. Rendin also has a special tenant’s notification template for terminating a rental agreement (see here).

2. A fixed-term agreement cannot be terminated ordinarily and unilaterally. The only options for terminating this type of lease prematurely are mutual agreement between the parties or an extraordinary situation that needs a very serious cause and means that continuing the lease is no longer in the best interests of both parties.

It should also be kept in mind that many situations that seem critical to the contracting party are not valid reasons in the eyes of the law. For example, a drop in income or separation from a partner does not constitute grounds for extraordinary termination.

2. Normal wear and tear in the rental apartment

Check what the agreement says about normal wear and tear. Whether the landlord accepts it or has set forth that the living space must be returned in a condition where all signs of wear and tear under normal use have been removed. This clause in the Law of Obligations Act governing rental agreements entered into force in 2021.

According to this agreement, the tenant must renovate the apartment before moving out and return the living space in the condition it was in before occupancy. However, the landlord cannot demand that the tenant replace furniture or appliances due to natural wear and tear. The refurbishment primarily refers to removing signs of natural wear and tear from walls, ceilings, floors, or windows.

At Rendin, such practices are not implemented in rental agreements. Therefore, the landlord must always take into account that their property needs repairs from time to time, the household appliances need to be repaired or the furniture replaced. It is common practice for landlords to factor in natural wear and tear and potential costs into the rental price.

3. Payment details in the rental agreement

The rental agreement must clearly state the terms of payment of the rental fee and the payment requirements (data of the recipient with the bank account number). If rent is paid in cash, it is very important to keep written records of the payments. For example, the landlord confirms the receipt of payment via e-mail to the tenant or the parties document the transfer and acceptance of money each month in writing.

4. Formalising the handover act

The handover act is the other important document besides the rental agreement. It is an agreement between the landlord and the tenant that must be drafted and confirmed both when the rental property is handed over and when it is returned. It provides the necessary evidence base for resolving potential misunderstandings and claims more effectively.

A properly executed act documents the condition of the living space at the time of the tenant's move-in and move-out, includes up-to-date photos, lists the items in the property, notes any defects, and records the latest meter readings. This creates a proper comparison between the two handover documents: one prepared at the beginning of the rental agreement and the other at its end.

• Read more: how to properly execute the handover act?