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Tenancy agreement: rights and obligations

22/05/2016

What are the advantages of having a tenancy agreement? And the disadvantages? Should you insist that your landlord makes such a contract? Does it have to be registered with the Tax Administration?

To begin with, a contract establishes legal grounds on which you and the landlord agree upon using his space. A tenancy agreement is meant to be a convention that works for both parties. For example, if you decide to move out, it’ll give him enough time to find a new tenant. In return, he will not be able to kick you out whenever he feels like it.

Although there are standard contracts (an example of one will be at the end of this article), you can add and exclude paragraphs, to adjust it to your specific case. It’s a way to make sure you’ll not be mislead by the owner. And for him is exactly the same.

In the tenancy agreement, you could add or remove paragraphs referring to:

  • date to pay the rent
  • the availability period
  • what happens with the deposit the tenant pays
  • if the owner should repaint the space every a couple of years
  • what happens if the tenant breaks something or doesn’t pay the utility bills on time
  • what happens if he can’t pay the rent on time

You can go into further details, if you want. In most cases, this won’t be necessary since these kind of contracts are pretty standard.

When signing a tenancy agreement, the owner must provide the Energy Efficiency Certificate, which won’t really help you with anything, since you’re renting and investing in hard-core renovations probably will not be on your to-do list. It’s purpose is to offer an understanding of the energy loss and where it can be saved, but to what extent this has any importance to you, will have to decide on your own.

The owner should also register the tenancy agreement in the following 15 days after the signing date, to the Tax Administration Office where his permanent residence is, and not in the city where the apartment is. Only if the owner is living outside Romania, then the contract must be registered with the Tax Administration Office from where the apartment is located. Legally, he will have to pay taxes for the income obtained from leasing his property. But the amount to be paid is established according to the declared rent you provided in the contract.

By not registering the contract, in case the owner is being caught by the authorities, he could face charges of tax evasion, for cashing incomes and not declaring them. The tenant, on the other hand, will not be sanctionable.

Here's a template for a tenancy agreement you can use, in Romanian.

Good luck!
Wizmo

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