The rental agreement is a crucial topic for both landlords and tenants, as it regulates the relationship and responsibilities between both parties regarding the use of real estate. In Estonia, rental agreements and related issues are regulated by the Law of Obligations Act (VÕS). In this article, we will review the key issues related to rental agreements, explain the responsibilities of both parties, and provide three examples of successful legal cases. Additionally, a list of 30 questions and answers has been compiled to help better understand the rental agreement and its related legal norms in Estonia.
Key Aspects of a Rental Agreement
1. The Essence of a Rental Agreement
A rental agreement is a contract between two parties where the landlord grants the tenant the right to use the property for a specified period in exchange for payment. A rental agreement can be either fixed-term or indefinite, and the terms of the agreement must be clear to both parties and mutually agreed upon.
2. Responsibilities and Obligations of the Landlord
The landlord is required to ensure that the rented property is suitable for use and complies with the terms of the agreement. The main responsibilities of the landlord include:
- Maintaining the rental property in good condition.
- Carrying out necessary repairs, unless this is the responsibility of the tenant.
- Allowing the tenant to use the property without unjustified interference.
3. Responsibilities and Obligations of the Tenant
The tenant is required to use the property according to the agreed-upon terms and in good faith. The main responsibilities of the tenant include:
- Paying the rent on time and in the agreed-upon amount.
- Taking care of the property and keeping it in good condition.
- Promptly notifying the landlord of any repairs needed or damage to the property.
4. Breach of Agreement and Consequences
If one party breaches the terms of the rental agreement, the other party has the right to claim compensation or terminate the contract. For example, the landlord may terminate the agreement if the tenant fails to pay rent or misuses the property.
30 Questions and Answers about Rental Agreements
- What is a rental agreement?
A rental agreement is a contract where the landlord gives the tenant the right to use property for a fee over a specified period. - Does a rental agreement need to be in writing?
Yes, a rental agreement should be in writing to avoid disputes and proof problems in the future. - What is the difference between a fixed-term and indefinite rental agreement?
A fixed-term agreement is for a specific period, while an indefinite agreement lasts until one party decides to terminate it. - Can the landlord demand a deposit?
Yes, the landlord can request a deposit, which usually amounts to two months’ rent. - When can the landlord terminate the rental agreement?
If the tenant breaches the terms of the agreement, such as failing to pay rent or causing damage to the property. - Can the tenant terminate the rental agreement early?
Yes, if this is provided for in the agreement or if the landlord fails to fulfill their obligations. - What happens if the tenant doesn’t pay the rent?
The landlord can give the tenant an additional deadline for payment, and after non-payment, the contract can be terminated. - Who is responsible for repairs?
The landlord is generally responsible for major repairs, while the tenant must maintain the property and take care of its everyday upkeep. - What happens if the property is damaged?
The tenant must immediately notify the landlord. If the damage is caused by the tenant, they are responsible for repair costs. - Can the landlord increase the rent?
Rent can only be increased under the conditions stipulated in the agreement or in accordance with the law. - What is the minimum notice period for terminating the agreement?
For indefinite agreements, the landlord must give the tenant at least three months’ notice. - Can the rental agreement be extended?
Yes, the agreement can be extended if both parties agree to it. - Who pays for utilities?
Typically, the tenant is responsible for paying utilities, unless stated otherwise in the contract. - What is the purpose of a security deposit?
The deposit is meant to cover any potential damages caused by the tenant during the rental period. - Can the tenant refuse repair works?
The tenant must tolerate necessary and reasonable repairs. - Can the landlord visit the rental property?
Yes, but only with the tenant’s consent or with prior notice. - What to do if the landlord fails to fulfill their obligations?
The tenant can demand the fulfillment of the contract or terminate the agreement. - Can the tenant make changes to the property without permission?
Significant changes can only be made with the landlord’s approval. - When should rent be paid?
Rent must be paid according to the agreement, usually monthly. - What if the property does not meet agreed conditions?
The tenant can demand the property to be repaired or reduce the rent until the issues are resolved. - Can the tenant sublease the property?
Yes, but only with the landlord’s consent. - What are the advantages of an indefinite rental agreement?
Flexibility in the contract duration, as it can be terminated at the desire of either party. - Can the landlord evict the tenant?
Yes, but only based on a court order and after a breach of contract. - Can the landlord terminate the agreement without reason?
In a fixed-term agreement, this can only be done with valid reasons. - Who is responsible for damages after the agreement ends?
The tenant is liable for damages caused during the term of the agreement. - What are the legal grounds for terminating the rental agreement?
The landlord may terminate the agreement if the tenant breaches the contract, such as not paying rent. - Can the landlord reclaim the property without the tenant’s consent?
No, the landlord must follow legal procedures for terminating the agreement. - How are rental disputes resolved?
Disputes can be settled out of court or in court. - Can the court award compensation to the tenant?
Yes, if it is proven that the landlord breached the agreement and caused damage. - Can the tenant claim compensation for repair costs?
Yes, if the repairs were necessary and the landlord failed to fulfill their obligation.
Examples of Successful Legal Practice
Case 1: Dispute Over Repair Works
The tenant filed a lawsuit against the landlord, who refused to carry out essential repair work. The lawyer was able to prove that the landlord violated their contractual obligations. The court ruled in favor of the tenant, ordering the landlord to pay for the repairs and provide compensation for damages.
Case 2: Resolving Rental Debt
The landlord had issues with a tenant who had accumulated significant rent arrears. After involving a lawyer and filing a claim in court, the landlord was able to recover the entire debt and compensation for the delayed payments.
Case 3: Dispute Over Property Damage
A landlord sought legal assistance after the tenant caused severe damage to the property. The court found the tenant responsible and ordered them to cover all repair costs and pay the landlord additional compensation for the damage caused.
These examples demonstrate the importance of legal assistance in resolving disputes related to rental agreements, ensuring that both parties’ legal rights and obligations are upheld.
