Problems in renting a house: Paying a deposit and breaking a contract

When you live in a rented house or have a house that you rent to someone else, it is very likely that some problems may arise. The responsibilities of the landlord and the tenant are sometimes not clear and so the two sides end up in conflict. But what happens when it gets to the point where the tenant wants to leave before the end of the lease? If a house contract breakage is needed by the landlord or the tenant, what can be done? And who keeps the deposit given when making a down payment on a rental home? We have compiled below useful information on such problems. We hope to help you, whether you are a landlord or a tenant, so that you know what you can do if problems arise.

#1 What are the landlord's obligations to the tenant?

The landlord is obligated to deliver to the tenant the space suitable for the use for which it was agreed upon at the time of the rental. In addition, he is obliged to repair any damage resulting from physical deterioration that threatens the health of the tenants and the condition of the assets within the dwelling (e.g. dampness in the wall, plumbing, etc.). On the flip side, the tenant is responsible for damage caused by their negligence or intentionally during the period of occupancy of the property (e.g. breaking a window pane, door, etc.).

#2 Can a landlord break a lease before the lease expires?

By law, the minimum term of a property lease is 3 years even if the lease states a shorter term than that. However, if there is a good reason such as:

• non-payment of the rent or
• change of use of the premises,

there may be a possibility of eviction of the tenant.

#3 Can the landlord evict the tenant for owner-occupancy?

Even if the landlord wants to use the space for owner-occupancy, the current law is very strict and provides that such a requirement can only be made if the landlord wants to use the property for his or her own or a family member's business accommodation and they do not have a privately owned space in the same city or suburb that meets their business accommodation needs. Indeed, in this case they may have to give the tenant a sum of money as compensation. Also, if the landlord requests the property for owner-occupancy and ultimately does not use it for that purpose, it is likely that they will have to pay additional compensation.

Under the current legislation, owner-occupation is not a ground for termination of the lease of a PRINCIPAL dwelling, since Law 1703/1987, which provided for it as a legal ground for termination of the lease, has ceased to apply (subject to paragraph 1 of Article 2 of Law 1703/1987), which was replaced as follows:

"In the case of use of the leased premises for a main residence or for mixed use (residence and business use), if the lessor or the owner of the leased premises, their spouse or child, do not have a privately owned premises in the same town or in a suburb thereof, that meets the accommodation needs of his or her business activity, the lessor or the owner may terminate the lease and request the return of the leased premises for private use after the expiry of the contractual term of the lease, but not before three years have passed since its commencement. The preconditions for termination are the intention and the possibility of owning the lease. In this case, the effects of the termination shall take effect six (6) months after it has been served on the lessee. In all other respects the provisions of this Act on owner-occupation shall apply accordingly".

#4 Can a tenant break a house contract?

Can you leave the house before the contract expires if you are a tenant? Breaking a contract by a tenant is a question that is of concern to all tenants and property owners alike. Normally a tenant does not have the right to leave the rental property before the expiry of their contract. If he/she makes such a decision, he/she is usually required to pay the remaining rent (at the request of the landlord).

Of course, this is not done voluntarily by the tenant and therefore the landlord will have to apply to the relevant judicial authorities so that he can receive his rents. The basic requirement for the landlord to be "vindicated" is to prove that during the intervening period his property was not rented and remained unused.

However, it is worth mentioning that the procedure can prove to be particularly time-consuming. This is because it takes more than a year for a first instance hearing and another year or so for a first instance decision and another year or so if an appeal is lodged. These cases are only brought to court if the space is left unlet for a long period of time, a period of time that under the contract the departing tenant would have used the space.

💡 To avoid such problems, it would be advisable for the tenant to inform the landlord well in advance (even 6 months in advance) and in writing that he/she wishes to "break" the contract and leave the property early. This ensures a better understanding between the two parties, informs the landlord so that he can act accordingly and look for a new tenant in time, and of course, helps the tenant to leave without having to pay the remaining rent.

When can the tenant break the contract?

There are certain exceptions that the tenant can invoke to break the contract before it expires. According to the Greek legal framework, a tenant has the right to terminate a lease before its contractual expiry and leave the property in the following cases:

- If the use of the property was not granted to the tenant, or if it was subsequently taken away (Article 585 CC).
- If the use of the leased property poses an immediate or imminent danger to the health of the tenant or his/her family members (Art. 588 CC).
- If the tenant is a civil servant and is transferred (Article 613 CC).
- Where the tenancy is for life or for a contractual period exceeding 30 years, provided that 30 years have elapsed since the start of the tenancy (Article 610 CC).
- If there is an important reason which prevents the lease from continuing in accordance with the principles of good faith and morality.

What happens if the tenant leaves the premises without the landlord's knowledge and disappears?

If the tenant leaves the premises without the landlord's knowledge, the landlord can claim the rent due for the entire period of time that the tenant had left the property and had not informed the landlord and if the tenant refuses to pay it voluntarily, the latter can be compelled to take legal action. A precondition for this is that the tenant must have visible assets in order for the court order to be "enforced", as it is well known that "thou shalt not receive in spite of not having", i.e. if the tenant has nothing in his name, no one can take anything from him.

#5 Contract expiry: What if the tenant does not leave when the lease expires?

Usually there is a clause in leases that prohibits the implied renewal of the lease of the property. Therefore, if the tenant remains in the property even after the lease expires, this does not imply renewal of the lease and does not guarantee the tenant's right to remain. It should be noted, of course, that in the absence of this or a similar condition, if the tenant remains in the property after the lease expires and the landlord does not object, then the lease becomes an open-ended lease.

#6 What about security deposit & deposit for renting a house?

When you rent a house, among the other expenses you have to consider the real estate fee and the deposit for renting a house. A deposit is defined as the amount of money that the tenant pays to the landlord at the start of the tenancy and is usually a multiple of the monthly rent. This amount is a deposit against any future debt of the tenant that may remain unpaid, in which case the amount of the security deposit will be charged to the tenant.

The landlord can claim the security deposit at the end of the lease and it must be returned if the landlord has no claims for rent or compensation for damage to the lease and if of course no other agreement has been made. That is, if at the end of the lease the property is delivered in the agreed condition, then on leaving the tenant receives back the deposit paid at the beginning of the lease.

💡 The early departure of the tenant, without the express consent of the landlord, does not justify the return of the deposit. The tenant may even be required to pay the remaining rent until the end of the agreed rental period.

And now you know what applies to the landlord breaking the contract, what happens if the tenant wants to leave before the end of the contract and what happens to the deposit that was given as a security deposit. If you're looking for your new home, we're here! View thousands of rental listings on Spitogatos in the area you are interested in and find your dream home!