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

Montenegro's landlord and tenant laws are judged by the Global Property Guide to be Pro-Landlord between landlord and tenant. While Montenegro does not heavily restrict tenants' rights, the evolving legal landscape and growing tenant advocacy indicate a potential shift toward a more balanced system. For now, however, the environment remains more favorable to landlords.

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

For residential leases, there is no regulated ceiling on how much rent a landlord can demand. Rent can be freely agreed upon, and any rental adjustments during the lease term must also be mutually agreed upon—there are no statutory rules mandating annual increases or linking rent to inflation unless both parties choose to include such a clause.

Montenegro's rental market operates primarily on market principles, allowing landlords and tenants to negotiate rent terms. However, general principles of contracting, such as fairness and mutual agreement, apply. For instance, if a lease agreement includes a clause permitting annual rent adjustments based on inflation or other indices, landlords can implement increases accordingly.

Deposits

There is no statutory limit on the amount a landlord can charge as a security deposit for a rental property. The deposit amount is typically determined through mutual agreement between the landlord and tenant. Common practice indicates that security deposits usually range from one to two months' rent, though in some cases, especially for high-end properties or those with expensive furnishings, landlords may request a deposit of up to three months' rent. 

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

Rental contracts in Montenegro can be either fixed-term or indefinite. There is no legal minimum or maximum duration imposed by law, so landlords and tenants typically negotiate contract length freely. Fixed-term leases last for the agreed period, and unless otherwise specified, they usually do not automatically renew. Indefinite leases continue until terminated by either party, typically with advance notice as specified in the agreement. If a lease does not specify duration, it is generally considered indefinite.

Eviction in Montenegro requires following the legal procedures. Landlords cannot forcibly remove tenants without a court order. If a tenant breaches the lease—such as by failing to pay rent or damaging the property—the landlord may initiate eviction proceedings in court. The court then assesses the claim and, if justified, issues an eviction order. Evictions must be carried out through official channels; self-help evictions (like changing locks or removing tenant belongings without permission) are illegal.

Notice periods for ending leases depend on what the parties have agreed in their contract. In the absence of an agreement, reasonable notice must be given, often ranging from one to three months. For fixed-term leases, early termination usually requires mutual consent unless there is a breach of contract.

Legislation

In Montenegro, tenant and landlord relations are primarily governed by the Law on Obligations (Zakon o obligacionim odnosima). This law sets out the general rules for lease agreements, including the rights and obligations of both parties, contract formation, duration, rent, deposits, and termination.

How effective is the legal system in Montenegro?

While Montenegro’s legal system formally supports eviction rights for landlords, practical issues such as delays, informal rental agreements, and enforcement gaps can limit the speed and effectiveness of evictions. Both landlords and tenants often face uncertainty, making clear, written contracts and legal advice highly advisable.

Brief history: Recent changes in landlord and tenant law in Montenegro

Recent developments in Montenegro indicate a growing recognition of the need for reform in landlord-tenant relations, driven by concerns over informal rental practices, rising rents, and inadequate tenant protections.

In June 2025, the Montenegrin Tenants’ Association “Moj dom” initiated efforts to establish a comprehensive legal framework for tenant rights. They proposed the adoption of a dedicated law to regulate rental agreements, ensure fair rent practices, and provide tenants with legal protections against arbitrary eviction and exploitation. This initiative aims to address the challenges posed by the largely unregulated rental market, where informal agreements and arbitrary rent increases are prevalent.