Lithuania Rental Laws: Pro-landlord, Neutral or Pro-tenant?

Lithuania's landlord and tenant laws are judged by the Global Property Guide to be slightly Neutral between landlord and tenant. While tenants do have important protections— such as the right to proper notice before eviction, clear rules on rent increases, and security of tenure— landlords enjoy significant control over rental terms.

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

Yes, in Lithuania, landlords and tenants generally have the freedom to agree on the rent amount without strict government-imposed limits. The rent is usually set through mutual agreement between the parties when the lease contract is signed. However, the agreed rent and any increases should be clearly stated in the lease agreement to avoid misunderstandings.

In Lithuania, landlords and tenants generally agree freely on rent amounts, but there are specific rules that govern how rent can be increased. Rent may only be raised once every 12 months, and landlords are required to give tenants at least three months’ written notice before any increase takes effect. Additionally, any rent increase must be mutually agreed upon and clearly documented in the lease agreement. If a tenant disagrees with the proposed increase, they have the right to take the matter to court, where a judge can decide on the appropriate new rent. 

Deposits

It is common practice for landlords to request a deposit equivalent to one or two months' rent. This amount is typically returned to the tenant at the end of the lease, provided there are no outstanding issues such as unpaid rent or property damage.

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

In Lithuania, both landlords and tenants have clearly defined rights regarding rental agreements, particularly concerning contract duration and eviction procedures.

Rental contracts can be either fixed-term or indefinite. Fixed-term leases last for a specific period agreed upon by both parties, while indefinite contracts continue until one party terminates the agreement according to legal requirements. Typically, fixed-term leases automatically convert to indefinite ones if the tenant remains in the property after the lease expires without signing a new contract.

How effective is the Lithuanian legal system?

Landlords must follow a formal legal process to terminate a tenancy. They can only evict tenants for valid reasons such as non-payment of rent, violation of lease terms, or if the landlord needs the property for personal use. Landlords must provide appropriate written notice, usually with a notice period specified by law or contract, and obtain a court order before eviction can occur. Self-eviction or forced removal without court approval is illegal.

Tenants, on the other hand, have the right to terminate leases by giving the agreed notice period, which is often one to three months depending on the lease terms. They also have the right to dispute eviction notices or rent increases through legal channels.

Legislation

Landlord and tenant relations in Lithuania are primarily governed by the Civil Code of the Republic of Lithuania (specifically, Book Six, which deals with lease agreements) and the Law on the Lease of Residential Premises. These laws set out the rights and obligations of both parties regarding rental contracts, rent payments, deposits, termination, and eviction procedures.

Brief History: Recent changes in Lithuanian landlord and tenant law

The housing stock was rapidly privatized after the re-foundation of the State of Lithuania on March 11, 1990. Today 97.6% of the housing stock is in private ownership. The rental sector is very small - if one excludes the 8% of the population who live in buildings owned by friends, only 3% rent from a private person, according to Statistics Lithuania (though the Free Market Institute's Household Study produces higher figures).

Since 1990, state-led construction has collapsed and the private sector has not compensated. So the number of newly completed residential dwellings has dramatically declined from 22,100 in 1990 to 3,785 in 2001. A related change is that proportionately more single-family dwellings are being built. Lithuania's housing stock offers primarily one to two room dwellings (54.3%), though it is true that Lithuanian households are small, composed on average of 2.6 persons.