New Rental Regulations starting August 1, 2024

Agency Fees

One of the key changes is the mandatory sharing of real estate agency fees between landlords and tenants. For all new leases signed from August 1, agency fees must be split 50/50, regardless of which party engaged the agency. Any lease clauses stating otherwise are deemed null and void.

Mandatory Written Leases

All leases signed from August 1, 2024, must be in writing to be legally valid. The written lease must include:

• Full identification of all parties (landlord and tenant(s))

• Start date of the lease

• Detailed description of the property, including address and cadastral reference

• Rent amount (excluding charges)

• Amounts for advance payments on charges or fixed charge amounts

• Any additional rent for furnished properties

• The security deposit amount (if required)

• A clause stating that parties can refer rent disputes to the rent commission

Importantly, any leases signed before August 1, 2024, whether written or verbal, remain valid and do not require modification.

Reduced Deposit Amount

The maximum legal amount for a rental deposit will be reduced from three months to two months' rent. Additionally, the new law introduces specific procedures for returning the security deposit, including penalties for landlords who fail to comply with the stipulated deadlines when a tenant leaves the property.

Limit on Rent Increases

The rule of annual thirds has been replaced by a biennial rent limit of 10%, according to the ministry. This means that during each rent adjustment, the rent cannot be increased by more than 10%. Additionally, landlords can charge extra for furniture in furnished rentals.

However, the reform of the rent cap has been removed. It should be noted that the total amount of rent paid by tenants may not exceed the maximum legal annual rent limit, which is 5% of the capital invested in the property.

Specific Regulations for Co-Living Arrangements

The new law also introduces specific provisions for co-living arrangements, which were previously unregulated. A single lease agreement will be established between the landlord and all tenants. Additionally, tenants must create a co-living agreement to outline the practical aspects of shared living. If a tenant wishes to leave before the lease ends, they must give a three-month notice to both the landlord and their co-tenants and actively seek a replacement. If no replacement is found, the departing tenant must demonstrate that they made sufficient efforts to find one.