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Armenia: Landlord and Tenant

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Armenian landlord and tenant law is pro-tenant.

Thanks to Ameria

Rents: Can landlord and tenant freely agree rents in Armenia?

The parties to the lease contract have the right to freely negotiate the initial rent, as well as to increase the rent payments by mutual agreement. The procedure, conditions and time periods for making payments can all be determined by the contract.

If not determined by contract, the procedure, conditions, and time periods are considered to be established in the manner usually used for the lease of analogous property types, in comparable circumstances.

The amount of lease payment may change by mutual agreement of the parties, unless otherwise determined by the lease contract.

According to Article 616 of Civil Code of RA, the law may provide other minimum time periods for reconsideration of the amount of lease payment for individual types of lease and also for the lease of individual types of property. Such clause gives to the legislative body the specific power to determine the relevant minimum time periods as required.

Deposits

Deposits of any amount are legal. According to Article 368 of the RA Civil Code the performance of obligations may be secured by a pledge, penalty and retention of property of the debtor, as well as by surety, guaranty, prepayment and other means provided under the law or contract. In practice prepayment is normal, as are security deposit payments. Parties have contractual freedom, which allows determining the period of the prepayment taking into consideration that the application of prepayments and security deposit payments is not mandatory by law.

What rights do landlords and tenants have in Armenia, especially as to duration of contract, and eviction?

A contract of lease is concluded for the time period determined by the contract.

If the time period of the lease is not determined by the contract, the lease shall be considered an indefinite term contract. In this case, each of the parties can rescind the contract at any time, by giving three months advance notice (in case of the lease of immovable property).

Article 612 of Civil Code of RA states that the law or contract may establish a different time period for notice on the termination of the contract of lease concluded for an indefinite term. The law may establish maximum time periods of contract for individual types of lease and also for lease of individual types of property. For example, the maximum period of the lease contract of the land which is the property of the community, shall be 99 years. In these cases, if the time period of lease is not determined in the contract, and none of the parties has rescinded the contract before the expiration of the time period limit established by a statute, the contract shall be terminated upon expiration of the time period limit. A contract of lease concluded for a time period exceeding the time period limit established by a statute is considered concluded for a time period equal to the statutory period.

Effectiveness of the Legal System

According to Civil Procedural Code, commercial disputes shall decided by the court within a month, and disputes arising from civil relations within 2 months. However, Armenian legislation does not determine any liability for violation of the above-stated terms, so in practice it usually takes longer. Therefore the parties usually try to settle disputed by negotiation, using the court system only where no negotiated settlement can be achieved.

The law provides that collection of unpaid rent shall take place within two months, by service of compulsory enforcement of court acts. Again, in practice it might take longer.

Legislation

Landlord and Tenant law is mainly governed by the Civil Code of Armenia, which came into force on 1st of January 1999. The registration of immovable property rights takes place in accordance with “On State Registration of Rights towards Property,” which came into force on May 6, 1999.

Brief History

The Civil Code of Armenia has not been amended except in respect to the provisions regarding financial leasing (by Armenian Law No. HO-351-N (20 May 2002) and Armenian Law No. HO-362-N (29 May 2002).

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