A lease for a long-term rental: what to watch out for

In a lease for a long-term rental, the main things to watch out for are a clearly stated rent and fees, the amount and terms of the refundable deposit, the length of the tenancy, the notice periods, and a handover report recording the condition of the flat and the meter readings. The lease should be in writing and clear to both parties. What follows is a general overview, not legal advice.

What a lease should contain

A good lease clearly sets out the rights and obligations of both parties. It should contain the basic details and terms so that there are no misunderstandings later:

• The names of the landlord and the tenant, and identification of the flat.
• The rent and the fees for services, and how they are to be paid.
• The amount of the deposit and the terms for returning it.
• The length of the tenancy, i.e. whether it is for a fixed term or an indefinite period.
• The notice periods and the terms for ending the tenancy.

Everything you agree on should be in writing. Verbal agreements are hard to prove later. So insist that the lease is complete and matches what you actually agreed.

The deposit and getting it back

The deposit is a refundable security payment that the tenant puts down to cover any damage or unpaid amounts. The lease should clearly state its amount and the terms for returning it once the tenancy ends. Most often the deposit is between one and three months' rent, and its amount should be reasonable and in line with common practice.

Before you sign, check under what circumstances the deposit is returned and what the owner may deduct from it. In Rezidence Pelikán the refundable deposit is CZK 10,000. It is a good idea to document the condition of the flat when you take it over, so that there is no doubt about the state you received it in.

Length of the tenancy and notice periods

A lease is signed either for a fixed term or for an indefinite period. A fixed-term lease has an end date set in advance; an indefinite one runs until one of the parties ends it. Each has its own rules on giving notice.

Pay attention to the notice periods and the grounds on which the tenancy can be ended. Find out how far in advance notice has to be given and in what form. These terms should be spelled out clearly in the lease so that you know where you stand. Clearly defined notice periods protect both parties and prevent needless disputes when the tenancy ends.

The handover report

The handover report is a document drawn up both when you take over the flat and when you hand it back. It records the condition of the flat, its fittings and the meter readings. It protects both parties, because it clearly documents the state the flat is in at handover.

The report should include:

• Readings of the energy and water meters on the day of handover.
• A description of the condition of the flat, its fittings and any defects.
• The number of keys handed over.
• Photographs as a supplement.

Both parties sign the report and each keeps a copy. When you move out, the same procedure is repeated, so it is clear whether you are returning the flat in the condition you received it in. That is usually decisive for getting your deposit back, too.

The most common mistakes when signing a lease

Many problems in a tenancy arise because the tenant does not read the lease properly or relies on verbal agreements. It pays to take the time to check it and not to sign anything under pressure. The lease is the document that governs the whole tenancy, and any ambiguities are much harder to sort out once you are already living there.

• Signing without reading all the terms carefully.
• Relying on verbal promises that are not in the lease.
• A missing or incomplete handover report.
• An unclear deposit amount and unclear terms for returning it.
• Meter readings not checked when taking over the flat.

If you are unsure about anything, ask for an explanation or for time to think it over. A reputable landlord has no problem with that and will gladly put fair terms in writing.

Checklist before you sign

Before you sign the lease, run through this short checklist:

This article is general information, not legal advice. For your specific situation, consult a professional. In Rezidence Pelikán the terms are set out clearly and the flats are let directly through the operator, Anglický Resort, with no estate agent's commission.