Renting Property in Budapest, Hungary

As to the rental of a flat or a house the legal relationship is established between the landlord and the tenant. It is necessary to put the contract in writing. The contract can be concluded for a definite or an indefinite period of time, or the occurance of a condition can be determined as the expiry of the contract.

According to the rental agreement the landlord is obliged to assign the use of the flat to the tenant while the tenant pays rental fee to the landlord. The right of usage includes the use of the flat (house) and its premises.

The rental fee is the countervalue of usage of the flat (house). The rental fee shall not necessarily determined as a sum of money but it can also be established as a service with valuable assets.

In the rental agreement the Parties may stipulate besides rental fee, the joint costs, the home insurance and other incurring expenses which shall be paid by the tenant.

According to the provisions of the Civil Code, the Parties have the following rights and obligations.

The landlord shall handover the flat (house) to the tenant in conformity with the provisions of the rental agreement. It is useful to imply in the contract the condition of the flat and the name of the equipment on the date of the handover.

The household furnishing as the wires, the convector, the blinds, the sockets, the flouring etc. shall be in working order. The landlord shall bear absolute warranty with regard to the above, so the tenant may claim from the landlord to make the failure repaired.

The Parties may agree that the tenant will furnish the flat with equipment. In the latter case the reimbursement of the expenses and the other conditions shall be implied in the rental agreement.

The landlord is obliged to ensure the maintenance of the building and the permanent working order of the central equipment, furthermore he shall take care over the conservation of the premises in common use.

If the landlord, after the written notice of the tenant, does not make the occuring failures repaired and therefore the tenant has to bear the expenses regarding the repair, the Parties shall agree on the reduce of the rental fee or on the reimbursement of the justified costs of the tenant.

The tenant is not obliged to make the failure repaired if the landlord is not willing to do so. In the latter case the tenant may terminate the rental agreement with immediate effect.

The rental fee shall be paid according to the conditions of the rental agreement. If the rental agreement does not contain regulation in this respect, the rental fee shall be paid monthly at latest until the 15th day of the month.

According to the general rule of law the tenant may host another person in the rental only with the written consent of the landlord.

The tenant is entitled to use the rental. The use of the rental does not imply – with the exception of the expressed consent of the Parties – the alteration and the modernization.

The tenant and the cohabitants shall use the rental properly and according to the provisions of the agreement. The landlord is entitled to inspect the use without causing any unnecessary disturbance to the tenant. Therefore the tenant shall allow the landlord access to the rental.

Budapest, July 2008

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