Lease agreement in the Czech Republic: what to watch out for

A good lease agreement is the best way to prevent disputes between landlord and tenant. Yet in practice people often use old templates from the internet that don’t fit their specific situation. In this overview we sum up what an apartment lease in the Czech Republic should contain and which points deserve the most attention – whether you are a landlord or a tenant.

This article is general information, not legal advice. Apartment leases are governed mainly by the Czech Civil Code (Act No. 89/2012 Coll.).

The essentials of a lease agreement

An apartment lease is concluded in writing. It should contain at least:

• identification of the landlord and the tenant (name, date of birth, address),
• an exact description of the apartment – address, apartment number, floor, layout and floor area, and any cellar or parking space,
• the lease term – fixed or indefinite,
• the amount of rent, the due date and the method of payment,
• advance payments for services and how they will be settled,
• the amount of the security deposit and the conditions for its return,
• the number of people who will live in the apartment,
• a list of the apartment’s furnishings, ideally as an annex with photos.

Lease term: fixed or indefinite?

Most leases in Prague are concluded for a fixed term, usually one year with the option of extension. This is clearer for the owner – when the lease ends, they can decide whether to extend it and on what terms.

Watch out for automatic renewal: if the tenant keeps living in the apartment after the lease term ends and the landlord does not ask them to move out within three months, the lease is renewed on the same terms. Keep an eye on the end date and agree on continuing the tenancy in good time.

Rent, services and utilities

In the contract, separate the rent (payment for the use of the apartment) from the advance payments for services – typically water and sewage, heating, the lift, cleaning of common areas or lighting. Once a year the landlord settles the advances according to actual consumption and refunds any overpayment, or the tenant pays the shortfall.

Ideally, the tenant has their own contract with the supplier for electricity and gas. If they remain in the landlord’s name, state in the contract how they will be recharged.

Rent increases

The simplest option is to agree on rent increases directly in the contract – for example once a year by the inflation rate published by the Czech Statistical Office. If the contract says nothing, the landlord may propose an increase up to the level of comparable rents in the area, but by no more than 20% over three years.

Security deposit

The deposit covers any debts or damage. The law limits it to at most three months’ rent. When the tenancy ends, the landlord returns it to the tenant with interest, after offsetting any debts. State in the contract within what period and to which account the deposit will be returned.

Rights and obligations of both parties

Minor repairs and maintenance

Minor repairs and routine maintenance of the apartment are paid by the tenant, other repairs by the landlord. The tenant must report without undue delay any defects that the landlord is supposed to repair.

Subletting and number of occupants

If the tenant does not live in the apartment personally, they need the landlord’s written consent to sublet. The tenant must notify the landlord of any increase in the number of occupants. It is therefore good for the owner to state in the contract who will live in the apartment.

Pets and smoking

Pets cannot be banned across the board as long as they do not cause disturbance disproportionate to the conditions in the building. The contract can, however, set conditions – for example compensation for any damage or a final clean. A ban on smoking in the apartment is a common and reasonable clause.

Access to the apartment

After prior notice, the landlord has the right to inspect the apartment or allow viewings by prospective tenants or buyers. It is advisable to agree in the contract how far in advance a visit will be announced.

Notice and ending the lease

A tenant may terminate an indefinite lease without giving a reason; a landlord only on grounds set out in the law – for example a serious breach of the tenant’s obligations. The notice period is usually three months. In the case of a particularly serious breach (e.g. failing to pay rent for at least three months), the landlord may terminate the lease without a notice period.

Notice must be given in writing and delivered to the other party. Notice from the landlord must include information on the tenant’s right to object and to have the court review whether the notice is justified.

Handover report

The handover report is just as important as the contract itself. Record in it:

• the condition of the apartment and furnishings, ideally with dated photos,
• the water, electricity, gas and heat meter readings,
• the number of keys and fobs handed over,
• any defects the apartment has at the handover.

When the tenancy ends, the apartment is handed back according to the same report. This makes it clear whether the tenant is responsible for anything, and the deposit can be returned without disputes.

Let a lawyer prepare the lease for you

When renting out your apartment with Prestige Group, you receive a contract prepared by a lawyer, a handover report with photos and a screened tenant. The service is free for owners – the commission is paid by the tenant. If you don’t want to deal with day-to-day matters either, we can take over the property management, including the service charge settlements.