Real estate for rent in the Czech Republic
Czech law protects landlord rights to a greater extent. Foreigners renting property built after 1993, and new tenants of property not owned by anyone, act in accordance with the conditions of the free market. The rent in this sector is set freely and depends entirely on the agreement reached between the lessor and the lessee. However, 90% of the population still lives in houses with a fixed rent, which is much lower.
There are two types of rent: “fixed rent”, tied to the cost per square meter and depending on the scale of the city and the category of the apartment (there are 4 such categories in total), and “actually regulated rent”, set in accordance with the general prices. Rights of landlords and tenants in the Czech Republic The difference between the two categories of leases mentioned above can be expressed differently – the free market makes it possible to conclude lease agreements with a fixed duration, and the regulated market for the most part with unlimited.
In a free market, parties can agree on any term of the agreement. If the duration of the contract is not specified, this contract is concluded for an indefinite period. The contract must be in writing. The tenant may cancel the contract at any time without giving reasons, by writing in writing about this three months in advance. The landlord can terminate the contract only for serious reasons, for example, if he needs this housing for his own family. Most often, free lease agreements are concluded for short periods.
As soon as the contract expires, the tenant must vacate the apartment / house. He does not have the right to replace housing. Notify the tenant of the eviction in this case is not required. Nevertheless, if the tenant does not vacate the premises, and the landlord does not submit any application for the expulsion of the tenant within a 30-day period, the lease agreement is extended for the same period for which this agreement was originally concluded. Moreover, if the agreement was concluded for a period of more than one year, it is always extended by one year. A lease concluded for a shorter period is extended for the same period.
In case of death of the tenant, the lease agreement is canceled. The landlord has the right to terminate the agreement if the tenant does not pay the rent within three months. In the case of a free agreement, the lessor can notify the tenant of the termination of the contract only if there are good reasons, and in some cases, sometimes even when the tenant is evicted for non-payment of the rent, he must provide the tenant with alternative housing as compensation. In such cases, the eviction process can last an average of up to 3.5 years. The term of the guarantee fee is not limited, but most often it is quite long.
Issues related to the rental of real estate are regulated by the Civil Code. Regulated lease matters relate to the Ministry of Finance pricing law.
During the communist regime, most of the residential properties belonged to the state. In 1959, departmental and cooperative housing appeared. After the 1991 economic reform, real estate issues were still in the background. In the Czech Republic, the population did not use the “right to buy” on a large scale; rather, on the contrary, many real estate objects were returned to their previous owners. In central Prague, 75% of all residential properties were returned. In this part of the city, real estate generally has set high prices. At the same time, the municipal authorities, having captured most of the public housing, began to slowly privatize this housing.
There is still a clear separation between the “free” real estate sector, built after 1993 (it also includes real estate that is not owned by anyone or leased to foreign citizens), and the regulated sector. The government is gradually narrowing this gap by: a) raising regulated rental prices; b) provides compensatory subsidies for income.