Greece Rental Property Laws for Landlords and Tenants

Greece Rental Property Laws: Your Rights and Responsibilities

In Greece, the rental property market is governed by a well-defined legal framework that protects both landlords and tenants. This framework outlines specific rights and responsibilities regarding security deposits, lease terms, rent adjustments, repairs, maintenance, and more, and serves as the basis for resolving all rental disputes in Greece.

Both landlords and tenants have clearly defined rights and responsibilities that promote a fair rental relationship.

Security Deposit and Warranty

Tenants are usually required to pay a security deposit at the beginning of the lease. This deposit serves as security for the landlord in the event of damage to the property, unpaid rent, or violations of the lease. The standard amount is usually one or two months’ rent, depending on the agreement.

The landlord must return the deposit to the tenant at the end of the lease, provided the tenant has fulfilled his or her obligations. Any deductions from the deposit must be justified (e.g. for damage beyond normal wear and tear). The landlord cannot use the deposit for regular maintenance or improvements to the property.

Lease Duration

In Greece, there is a mandatory minimum rental period of three years for residential property, even if a shorter period is agreed in the contract. This means that the tenant has the legal right to remain in the property for three years, unless they choose to terminate the lease earlier.

Rent Adjustments

The rent is usually fixed for the term of the lease. The landlord cannot increase the rent during the term of the lease unless the lease contains a rent escalation clause or both parties mutually agree to a change.

At the end of the initial lease term (for example, three years), the landlord can propose a rent increase for each subsequent lease term. The tenant can either accept the new terms or negotiate. If no agreement is reached, the tenant may choose to vacate the property.

In areas where the real estate market is highly regulated, rent increases must be in line with market rates and may be subject to restrictions imposed by local authorities. This ensures that tenants are not subject to excessive or unfair rent increases.

Repairs and Maintenance

The landlord is responsible for making major repairs and ensuring that the property is safe and habitable. This includes structural repairs, plumbing, electrical, heating and water systems.

Tenants must notify the landlord of any major problems or defects that need to be repaired. Failure to report such problems could make the tenant liable for any resulting damage.

Landlords must address any significant problems with the property that affect the tenant’s ability to live comfortably, such as fixing a broken roof or a malfunctioning heating system. The landlord must also ensure that the property meets all legal requirements for health and safety, such as providing functional fire safety measures where required by law.

Tenants are responsible for minor repairs and day-to-day maintenance. This may include tasks such as changing light bulbs, maintaining cleanliness, or repairing minor wear and tear.

Utility Bills and Municipal Taxes

The tenant is usually responsible for paying utility bills such as electricity, water, gas and internet, unless otherwise stated in the lease. These bills should be transferred into the tenant’s name at the beginning of the tenancy.

Tenants are also responsible for paying any municipal taxes related to garbage disposal or other local services (often included in utility bills), unless otherwise specified in the lease.

Tenant’s Right to Quiet Enjoyment

Greek law grants tenants the right of “quiet enjoyment” of the rented property, which means that the tenant is entitled to use the property without interference from the landlord, provided that the tenant complies with the terms of the lease. The landlord cannot enter the property without prior notice and consent of the tenant, except in emergency situations.

The landlord must respect the tenant’s privacy and give reasonable notice (usually 24 hours) before entering the property to make inspections or repairs. The landlord cannot enter the property frequently or without good cause.

Eviction Process

If the tenant does not pay the rent, the landlord can start the eviction process. However, Greek law protects tenants from arbitrary eviction, and landlords must follow the proper legal procedure, which usually involves obtaining a court order. Evictions can take time, and landlords must prove that the tenant has violated the terms of the lease.

In addition to non-payment of rent, grounds for eviction include substantial damage to the property, illegal activities on the premises, or repeated breaches of the lease. The eviction process must go through the courts, and self-help evictions (e.g., changing the locks without a court order) are illegal in Greece.

Recap of Landlord Rules in Greece

Here is a summary of the main rights and obligations of landlords in Greece:

Recap of Tenants Rules in Greece

Here is a summary of the main rights and obligations of tenants in Greece:

The rights and responsibilities of a property management company

Property management in Greece is a very common service, especially for landlords who do not live in the country or on the island where their property is located, or for those who have multiple properties.

The involvement of a property management agency does not alter the legal rights and obligations of landlords and tenants under Greek property law, but they do assume legal rights and obligations for their role.

Property management companies:

• Have a fiduciary duty to act in the best interests of the landlord and to manage the property professionally and responsibly. They must make financial decisions that are in the best interests of the owner and protect the value of the property.
• Must ensure that the property and letting activities comply with Greek property laws, including lease registration, health and safety regulations and the protection of tenants’ rights.
• Responsible for screening tenants and ensuring that leases meet the landlord’s requirements and comply with legal standards.
• They are responsible for overseeing necessary repairs and maintenance. They must ensure that the property is kept in a habitable condition and deal with any structural or major repairs required to meet legal standards of habitability.
• Must deal with tenant complaints and disputes in a professional manner, working to resolve any issues that arise and keeping both parties informed.
• Must comply with all agreed terms in their management agreement with the landlord. Failure to do so could result in liability or penalties as set out in the contract or under Greek law.

Property management companies in Greece can be held liable for:

• Negligence in the maintenance of the property resulting in damage or injury.
• Mishandling of funds, such as misappropriation or inaccurate financial reporting.
• Failure to comply with Greek property laws or rental regulations, which can result in penalties for both the company and the landlord.

Respect Your Rights and Obligations Under Greek Rental Property Laws

It is important to respect your obligations as a landlord or tenant to avoid costly and stressful disputes that could even lead to lawsuits and financial loss. At the same time, you need to make sure that your rights are respected by the other party as well.

If you feel that your rights as a landlord or tenant are not being respected and you would like to contact a real estate lawyer in Greece, call Leptokaridou Law Firm: we are here to assist and advise you in the best way possible.