Newsletter (not only) for brokers - Rent guarantee from the state, Viewing an occupied apartment, Subletting an apartment through Airbnb

8.10.2024

News in law: Rent guarantee from the state?

The Chamber of Deputies is currently holding the first reading of the draft law on housing support, which introduces a rent guarantee from the state. If the bill passes, this could be interesting news for landlords who are concerned about non-payers or damaged apartments. The bill is still in the discussion stage, so it is uncertain when (or if) it will be passed, but it is already important to know what it offers.

What does the bill promise?

- A rent guarantee - if a tenant stops paying, the state will cover the loss of rent.

- Coverage for utilities and damages - the state would also pay for unpaid utilities and damages caused by the tenant to the apartment.

If the law were passed, landlords would have more security and would not have to worry about revenue shortfalls or costly repairs after problem tenants. This could attract more people to rent apartments, which would boost the rental housing market.

Helpful hints: viewing an occupied apartment

One of the common problems that estate agents encounter is when they need to inspect an apartment, but the lease has not yet ended and the apartment is still occupied. The landlord often pushes for viewings to take place as soon as possible because he wants to minimise the period when he will be receiving rental income. This is particularly important where the flat is financed by a mortgage which the landlord is paying off from the rent. But how to proceed to ensure that everything is done in accordance with the law?

According to Section 2233 of the Civil Code, the tenant is obliged to allow prospective tenants to view the apartment in the last three months before the end of the lease. It is important that the inspection takes place in the presence of both the tenant and the landlord and that the tenant is given sufficient notice. No surprises like "we'll be there tomorrow at two o'clock with five people!"

However, inspections should not be too frequent or intrusive - the tenant is entitled to a rent reduction in such cases. It is therefore always best to find a compromise between the landlord's interests and the tenant's right to quiet enjoyment of the apartment.

Decision: Subletting an apartment through Airbnb

The Supreme Court , in its decision 26 Cdo 2128/2023, confirmed that a tenant can be given notice of termination of the lease of an apartment if it breaches its obligations under the lease agreement by subletting the apartment to third parties for short-term accommodation, for example through platforms such as Airbnb. Such behaviour may be considered a gross breach of obligations, giving the landlord the right to terminate the lease under Article 2288(1)(a) of the Civil Code.

In the case at hand, the tenant had rented the apartment for the purpose of long-term living, but offered the apartment for short-term accommodation of tourists via Airbnb. Importantly, the tenant had the landlord's consent to sublet the apartment, but that consent did not relieve the tenant of the obligation to use the apartment for the purpose for which it was rented - that is, to provide housing needs, not to run a short-term accommodation business. This breach of duty gives the landlord the right to terminate the lease with three months' notice.