Bosnia and Herzegovina Rental Laws: Pro-landlord, Neutral or Pro-tenant?

Bosnia and Herzegovina landlord and tenant laws are judged by the Global Property Guide to be slightly Pro-Tenant between landlord and tenant. While the law provides safeguards for both sides, the combination of tenant protections and procedural hurdles for eviction makes the system appear more tenant-friendly, particularly in urban residential contexts. Commercial leases, however, often offer landlords greater flexibility.

Rents: Can landlord and tenant freely agree rents in Bosnia and Herzegovina?

Landlords and tenants generally have the freedom to agree on rent amounts without direct government-imposed limits. Rent agreements are usually negotiated privately between the parties, and the agreed rent is binding as long as it complies with the terms of the lease contract.

Rent increases are usually controlled by the conditions set out in the lease agreement. If the contract contains a clause detailing when and how rent can be adjusted—such as yearly adjustments or changes linked to inflation—both the landlord and tenant must follow these terms. Any rent increase that falls outside of these agreed conditions can be challenged by the tenant.

Although there is no nationwide rent control, some local municipalities may have rules affecting rent increases. For example, certain areas might impose limits on how often rent can be raised or set a maximum percentage for allowable increases within a specific timeframe.

Deposits

In Bosnia and Herzegovina, there is no statutory cap on the amount a landlord can request as a security deposit. The deposit amount is typically agreed upon between the landlord and tenant and is commonly equivalent to one or two months' rent. However, some sources suggest that deposits of up to three months' rent may be requested in certain cases.

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

Lease agreements can be either fixed-term or indefinite. Parties are free to negotiate the contract duration, and the terms must be clearly outlined in the lease agreement. Fixed-term leases expire at the end of the agreed period, while indefinite leases continue until one party terminates the contract following proper notice procedures.

Eviction must follow a legal process. The landlord cannot forcibly remove a tenant without a court order. Typically, if a tenant fails to pay rent or breaches significant lease terms, the landlord may initiate eviction proceedings in court. After a court ruling in favor of the landlord, enforcement is carried out by court bailiffs. In practice, these process can take extended periods of time.

Bosnia and Herzegovina’s landlord-tenant laws emphasize contractual freedom but protect tenants by requiring landlords to follow legal procedures for eviction and termination. Both parties have rights to negotiate lease terms, but enforcement of those terms—including eviction—must be done through the courts to ensure fairness.

Legislation

Landlord and tenant relations in Bosnia and Herzegovina are primarily governed by the Law on Obligations, which is part of the country’s civil law framework. This law sets out the general rules for lease agreements, including the rights and obligations of landlords and tenants.

Additionally, because Bosnia and Herzegovina is divided into two main entities—the Federation of Bosnia and Herzegovina and the Republika Srpska—as well as the Brčko District, each has its own civil codes and regulations that may include specific provisions related to leasing and tenancy within their jurisdictions. However, all these laws are based on similar principles derived from the Law on Obligations.

How effective is the legal system in Bosnia and Herzegovina?

The legal system in Bosnia and Herzegovina provides a formal process for eviction, but its effectiveness can be mixed due to several challenges.

Eviction requires a court order, and landlords must initiate legal proceedings if tenants fail to pay rent or violate lease terms. The courts review the case and, if the landlord’s claim is valid, issue an eviction order. This formal process helps protect tenants from arbitrary or forced removal.

However, in practice, eviction proceedings can be slow and bureaucratic. Court backlogs and administrative delays often prolong cases, sometimes taking several months to reach resolution. Enforcement of eviction orders depends on local court bailiffs, whose availability and efficiency can vary, causing further delays.

History: Recent changes in landlord and tenant law in Bosnia and Herzegovina

Recent changes in landlord and tenant law in Bosnia and Herzegovina have focused on improving property rights, eviction procedures, and access to housing, especially related to post-war restitution and the return of refugees and displaced persons. These reforms aim to speed up legal processes and ensure fair treatment for all parties involved.

Key updates included reducing the deadline for property repossession, introducing fines for multiple occupancy of properties, and shifting the burden of proof onto current occupants to show eligibility for alternative housing. Additionally, the privatization of certain apartments was temporarily frozen pending further review, and the appeals process was simplified to avoid long delays.

In 2024, new regulations were also adopted to provide greater clarity and predictability in property transactions, including those involving leasing and tenancy.

Overall, these reforms reflect efforts to modernize property and tenancy laws in Bosnia and Herzegovina, align them with European standards, and strengthen the protection of property rights for all citizens.