Rental agreement

Does a rental agreement need to be notarized?

The general rule is this: unless the law sets a special form for this type of contract, the parties may conclude it in any form allowed for transactions. Notarizing an apartment rental is listed as a separate service in "ASAN service." Does your case require notarization or another formality, such as state registration? Ask a notary before you sign.

In practice an agreement comes in three forms. A verbal arrangement is the weakest in a dispute: it is hard to prove who promised what. A simple written agreement is evidence both sides hold. Notarization adds a little more weight to the document in a dispute.

When does notarization give extra protection?

Notarization is not equally useful for every rental. If the term is short, the deposit is small and the parties know each other, a simple written agreement and a handover act are often enough. In other cases notarization gives extra protection. It becomes harder to say later "I didn't sign this," because the notary has established the signer's identity.

But notarization does not decide the content of the clauses for you. The parties must agree on the clauses about the deposit, utilities, repairs and termination themselves, so first check the text clause by clause against a sample. When deciding whether to go to a notary, look at these circumstances:

• Term: the rental is meant to run for a long time
• Money: losing the deposit and a month's rent would be hard on you
• Parties: one of them is abroad or signs through a representative
• Ownership: the apartment has several owners

Which documents are needed for notarization?

The official ASAN page lists the documents for the service "Notarization of a residential lease agreement"; the list is at the end of this section. The owner (lessor) and the tenant (lessee) take part in the notarization. A representative with a notarized power of attorney may come in their place.

The owner mostly prepares the documents on the list. It is useful for the tenant too: if other adults are registered at the apartment, you can ask whether their consent has been obtained.

The service is paid: there is a state fee and a service fee. The amounts may change, so check the official ASAN page before you go.

According to a note on the same page, property insurance is mandatory. Ask the notary whether this affects the notarization. The page also mentions the option of ordering the service with a visit to your location; ask ASAN about the conditions and cost. The list may change over time, so open the page and check the current version before you leave.

• A notarized copy of the document confirming ownership
• If the owner is married, the marriage certificate
• The spouse's notarized consent to renting out the apartment
• The notarized consent of all adult family members registered at the apartment
• An extract from the state registry describing the property, the registered rights and their restrictions (encumbrances)

Deposit and booking payment: what should the receipt and the agreement say?

For any money you hand over before the agreement and on the day of signing, you should have confirmation. A receipt or the description of a transfer should show the amount, the date, who received the money and what it was for: a booking payment, a deposit or the first month's rent. Do not merge them into one sum. Each may have a different fate.

When people talk about a "booking payment," they mean money given to hold the apartment for you until the agreement is concluded. Write in the receipt whether this money counts toward the rent and whether it is returned if the agreement is not concluded. Do not pay a booking payment without seeing the apartment and checking the owner's identity.

A deposit is different from a booking payment. It is written into the agreement as a separate clause and handed over at signing as security; what that clause consists of is shown clause by clause in the sample rental agreement. If money is deducted from the deposit, ask for the reason and the amount in writing. Confirm the returned amount with a receipt or a transfer too.

Tax on rental income and residence registration: what to ask in advance?

Income from renting out an apartment is taxable. In some cases the party who pays the rent withholds the tax and remits it to the budget at the time of payment. Whose duty this is may depend on the parties' tax status, and the rules change. Before signing, check the current terms on the official website of the State Tax Service or ask its call center.

After you move in, the question of residence registration (registration at your place of residence) may come up. Before signing, find out the procedure and the documents needed on the official State Services Portal or at the relevant state body.

The owner's position matters more. Is he willing to register you? Ask before the agreement and settle it in writing, otherwise after you move in you may hear "I can't register you."

How do you end a rental agreement early?

If the agreement has to end before its term, first open the agreement itself. How does it set out the notice period, the grounds for termination and what happens to the deposit? If it does, there are fewer disputes. If not, the parties' rights are determined by the general rules of the law, and that may turn out to be unexpected for both sides.

Give notice of termination in writing, stating the reason and the date you want. Keep the document or the correspondence showing that the notice reached the other party. If the breach is serious, for example long-unpaid rent or damage to the apartment, also state in writing what you require to be fixed and by what date.

When a fixed-term agreement ends, the same rule applies: either extend the agreement in writing or agree the move-out date in writing. Do not hope it will sort itself out; a dispute may arise later. During a dispute, changing the lock on your own or carrying out the other party's belongings only makes your position worse. If you cannot reach an agreement, contact a lawyer.