Romania Rental Laws: Pro-landlord, Neutral or Pro-tenant?
Romania's landlord and tenant laws are judged by the Global Property Guide to be Pro-Landlord between landlord and tenant. While tenants have legal safeguards, Romanian rental law leans a bit more in favor of landlords, especially when compared to countries with stronger tenant protections.
Rents: Can landlord and tenant freely agree rents in Romania?
Rental amounts can be freely negotiated between the landlord and the tenant. The rent can be indexed to inflation; such clauses are common. Progressive annual increases in rent can be lawfully stipulated in the contract.
Both landlords and tenants need to clearly understand the termination and notice rules stated in their lease agreement. Fixed-term leases end once the agreed period expires, unless they include a clause for automatic renewal for the same length of time. For leases without a fixed end date (indefinite-term), either party must give advance notice before ending the agreement, usually between one and three months, depending on what the contract specifies.
Lease agreements in Romania typically specify how and when rent can be increased. The contract should clearly outline the conditions for raising the rent, how often increases can occur, and any limits on the amount.
Deposits
Under Romanian law, landlords can ask for a security deposit typically amounting to one or two months' rent. When the lease ends, the deposit must be returned to the tenant, minus any legitimate deductions for damages or unpaid rent..
What rights do landlords and tenants have in Romania, especially as to duration of contract, and eviction?
In Romania, lease agreements may be concluded for either a fixed term or an indefinite period. Fixed-term leases are established for a set duration, while indefinite-term leases remain in effect until one of the parties decides to end the contract. For fixed-term agreements, it is important to clearly state the lease duration in the contract. If automatic renewal is intended, this should also be explicitly included in the terms of the agreement.
Tenants may only sublet with previous written permission from the landlord, and under the conditions set by the landlord. Subletting can be expressly forbidden in the contract.
How effective is the Romanian legal system?
Eviction in Romania is a carefully regulated process that must be approved by a court. The reasons for eviction, along with the steps for resolving any disputes, should be clearly specified in the lease agreement. Taking a dispute to the courts is possible, but will take 1.5-2 years. The courts are generally viewed with suspicion.
Under Housing Act Art 21, the contract must be registered with the local fiscal authorities, not in order for the contract to be effective, but in order to prevent tax evasion.
Legislation
The relationship between landlords and tenants in Romania is primarily governed by the Civil Code and the Law no. 114/1996 on Lease Agreements (Legea nr. 114/1996 privind contractul de locațiune). These laws set out the rights and obligations of both parties, covering aspects such as contract formation, rent, deposits, termination, and eviction procedures.
