Know your rights, but also the rights of the other party
Although landlords and tenants have a common goal in the big picture, their interests and visions of rental relationships tend to differ. Generally, one knows one’s rights well, but forgets to familiarize oneself with those of the other party. However, this could be done in order to avoid misunderstandings at the conclusion of the contract and in the future.
A lease agreement is the A and O in the real estate field, which sets out the rights and obligations of the parties – what is written down in the agreement must be done in the future. Contracts must be legally correctly formalized and, depending on whether it is a fixed-term or open-ended contract, you must familiarize yourself with the differences. If you don’t know this field, there is an opportunity to hire a realtor who knows contracts like the back of their hand.
As you know, the rental agreement includes a lot of details that must be based on the legislation. According to ELUM Real Estate realtor Mariliin Aarendi, agreements are often made when signing leases that are not in accordance with the law. “For anyone who wants to rent out their home or real estate, I recommend that they first familiarize themselves with the provisions of the Law of Obligations Act, which regulate contractual relationships. As a property owner, you need to be familiar with both your own and the tenant’s rights and obligations, because they help to clarify which agreements to conclude with the tenant and which may turn out to be invalid.”
What are the owner’s rights?
The owner has the right to terminate the contract in an emergency, if the tenant has significantly violated the terms of the contract. You also have the right to know who lives in the apartment with the tenant, and whether the tenants also have pets. The data of all persons living in the apartment must be fixed in the contract, and it is recommended to include information about pets.
The owner has the right to visit the residential premises in accordance with the conditions stipulated in the contract, with the aim of checking the intended use of the residential premises. However, this can only happen if the time specified in the contract is given in advance. In the event that the lessee significantly violates the non-monetary agreements in the contract, the parties have the right to demand a liquidated damages upon prior agreement.
A lot of questions also tend to arise about the deposit and on what basis it is returned. Pursuant to the law, the deposit secures all possible claims of the landlord against the tenant arising from the lease agreement. The lessor returns the deposit to the lessee to the extent that they have no claim against the lessee. At this point, it is worth pointing out that claims can be both financial and property. The owner can demand financial compensation for the damaged property or demand the replacement of the property with a new and equivalent one. If the apartment has not been cleaned upon handover, the owner can order cleaning for a deposit, but only if the parties have previously agreed on this. The remaining amount will be returned to the tenant.
What are tenant rights?
The tenant can demand the return of the deposit if the landlord has not notified his claim against the tenant within two months after the end of the lease. Failure to return the deposit in the absence of a claim is against the law and the tenant has the right to file a lawsuit against the landlord and go to court to demand the return of the deposit.
The tenant has the right to use the living space according to the conditions specified in the contract. They also have the right to demand a written contract from the owner, which would confirm the legal basis for the use of the living space. Before renting an apartment, it is advisable to check the ownership documents to make sure that the landlord is the legal owner of the home. If the landlord does not have one, they must have a written authorization from the owner, which can be in plain text with the owner’s signature.
Sometimes the real estate is owned by several people (e.g. in the case of joint property). In this case, the contract must contain the signatures of both owners or the written consent or authorization of one party to rent the apartment to another person. The lessee must pay attention to the fact that all errors and deficiencies are recorded in the contract.
Which topics should be discussed in order to smoothly rent an apartment?
Many people rent out their property through a realtor, but end the contract and take possession themselves. The main mistake that is made when accepting an apartment is not signing the transfer-acceptance deed or failing to note in writing the defects discovered in the apartment. That’s where the main problems start – one party claims one thing, the other another, and in the end no agreement is reached. There have been situations where the owner claims that there are defects in the apartment, but the tenant says that the owner accepted the keys and did not make any claims. In such word-for-word situations, it is extremely difficult to find a solution.
To avoid such situations, before handing over the apartment, photos or videos should be taken to record the condition of the apartment. Minor defects can be noted in writing in the deed of transfer. All mutual agreements must be fixed in writing in the contract and deed, because oral ones are difficult to prove later.
In addition to utility costs, agreements related to building maintenance and improvement costs must also be outlined in the contract. There may also be a need for other ongoing expenses, which are borne by the tenant if this has been agreed in advance in writing. All agreements and obligations regarding payment must also be noted in writing.
The desire to increase the rent and the extraordinary termination of the contract
In the case of a fixed-term contract, the rental amount is fixed and is valid until the end of the contract. However, if it is an open-ended contract that has been valid for at least 1 year, the lessor must notify the lessee of the increase in rent and justify it in writing at least 30 days in advance.
However, contracts and deeds are very different, which is why it is worth looking at each real estate object separately and keeping in mind all sorts of buts. Like people, every home is different and the paperwork required is different. When renting out an apartment, you have to take your time, act thoughtfully and, if necessary, involve a realtor for advice.
