Knowledge base

Apartment renting process:

The process starting from the advertisement of the property, through the showing of the apartment, signing of the lease agreement, and closing with the handing over of the apartment. 

Property management tasks:

During the rental period, we take the entire process off your shoulders: – contact with the tenant, – reading meters, – reporting meter readings to the service providers, – settlement of utility bills, – contact with joint representative, – apartment inspection, – organization and supervision of necessary repairs, – insurance managing affairs, – organizing and supervising necessary cleaning, – documenting moving in and out.

Handover protocol: 

The document that we prepare during the handover of the apartment. It includes the furnishing, the condition of the rooms, and the meter readings are recorded in detail. There is a list of handovered tools and keys. The document is made in 3 copies, 1 each for the Tenant, the Landlord and one copy for our office due to the efficiency of the property management work. 

Definite term lease: 

The lease agreement between the Landlord and the Tenant is signed for a fixed period of time. During the fixed term, the Parties can only terminate the contract with immediate effect.

Undefinite rental contract: 

Landlord and Tenant conclude the lease contract for an undefinite period with a possible minimum time interval, which means that both parties have a 60-day notice period to terminate the contract.

Notice period:

The period before the expiry of the rental agreement, during which the Tenant is obliged to continue paying the rental fee. The Landlord can present the property to a new prospective tenant (with prior notice to the current Tenant). 

Extraordinary termination:

The parties terminate the contract with extraordinary notice if the other party violates any point of the signed rental contract. In this case, the contract will be terminated within 8 days from the date of notification.

Notary declaration of evacuation:

A public document prepared on the basis of the lease agreement, in which the Tenant undertakes to move out of the property in the event of any termination of the lease, and his/her right to possession ceases. According to the public document, the eviction takes place in a direct enforcement procedure without legal proceedings. The Landlord is obliged to prove to the Notary with facts the reason for possible termination.

Deposit:

The amount that the Tenant pays to the Landlord when signing the lease agreement. This amount is a guarantee for the Landlord in case of damage or non payment of rent. If this amount has to be used for some kind of repair/nonpayment during the lease, in that case the Tenant must supplement it to the full amount within 3-5 days. Usually the deposit is an amount equal to 2 months rental fee.

Landlord’s rights during renting:

The Landlord has the right to terminate the contract if the Tenant violates any point of the signed rental contract.

The Landlord has the right to inspect the property at an advanced agreed time with the Tenant.

Obligations of Landlord during renting:

The Landlord is obliged to maintain the property and hand it over to the Tenant in a condition which is suitable for its intended use.

Must ensure that a third party has no rights that would hinder the Tenant from using the rental property.

The Landlord is obliged to pay back the amount of the deposit to the Tenant by the end of the lease, after the full settlement, after deducting any remaining costs, repairs and cleaning fees.

Obligations of Tenant during renting:

The Tenant is obliged to pay the rent and utility costs by the specified deadline. It is obligatory to use the apartment according to its intended purpose, with the care of a good owner. Tenant obliged to pay a compensation for damages caused by him/her or his/her guest in the rental property.

Tenant’s rights during renting:

The Tenant enjoys the right of possession during the rental period. The Tenant has the right to terminate the contract if the Landlord violates any point of the signed lease contract.

Property valuation:

During the value assessment, we evaluate the property based on its properties and determine the selling price (or rental fee). Based on its location, orientation, technical features, and equipment, we can determine its selling price (or rental fee) in comparison to similar properties on the market through a comparative analysis. Alternatively, it can also be determined with a yield-based calculation, taking into account the property’s income potential.

Real estate agent:

The professional who manage the selling or renting of the property. Qualified professional with legal, financial and technical knowledge. He/she knows real estate market conditions, new investments, and presents the most ideal options for his/her clients.

Condominium: 

The name of residential buildings with more separate units, where the community of apartment owners decides on the operation of the building during general meetings. The owners/residents bear the costs of the condominium.

Condominium common area:

Those areas in the residential building that all residents can use (e.g. entrance hall, staircase, elevator, corridors, storage of garbage bins) or that generates common benefit for the residential building (e.g.: jointly owned business premises or apartments). The maintenance and cleaning of the common areas is the responsibility of the condominium.

Common cost:

In the residential buildings, common costs are payable based on the ownership share or square meter of the apartments. It is the amount wich is paid monthly by the residents to cover the following expenses: maintenance of the common areas of the apartment building, such as cleaning of the staircase/common areas, garbage collection fee, upkeeping of common areas; electricity/water/gas consumption, elevator operation and maintenance, annual/semi-annual/monthly maintenance of the condominium, insurance fee, etc. amounts.

Renovation fund: 

The amount determined by the General Assembly of the Condominium, which forms part of the common cost. This amount is handled separately by the condominium managers, and can only be used for repairs and expenses voted by the general meeting. Its purpose is to ensure that the residents do not have to pay a large one-time sum during a possible major investment in a condominium (e.g.: corridor/staircase painting, roof repair).

Utility bills: 

In simple terms, utility fee is the collective term for water, sewage, gas, electricity and garbage collection fees.

Flat overhead fee:

In the case of utility service providers, we are talking about a flat fee if the meter of the given utility is not reported on a monthly basis, but only has an annual reading (each consumer can decide on this separately). Then, based on the previous year’s consumption, the service provider determines the monthly flat rate for the given year, which is corrected during the annual reading (possible overpayment or arrears).

Flat overhead fee during the rental period:

During long-term rental, in many cases, the Tenant pays a specific, fixed amount to the Landlord on a monthly basis as a flat-rate utility fee. This fee is determined by including all costs associated with the use of the apartment (e.g. common costs, average utilities, or internet monthly fee, possibly insurance fee).

Water and sewerage fee:

The amount paid for the property’s water usage measured by a water meter. After the amount of water consumed, a sewerage fee must also be paid to the Water Works. The amount of the sewerage is equal to the amount of water consumption measured on the water meter.

Heating:

During the heating season, there are different heating systems, such as individual gas heating (convector/boiler), central heating (condominium has its own central gas boiler), central heat pump system (wall heating or ceiling/floor heating), possible district heating or electric heating (infrared panel, electric convector).

Each system has a different degree of efficiency, of course their cost depends on the condition of the apartment and the use.

Heating season: From September 15 to May 15.

Electricity: 

The electricity fee includes all electricity consumption in the property: direct electricity use (sockets, lighting), air conditioning use, possible hot water heating (if an electric boiler is installed) or possible heating fee (if an electric convector or infrared panel is installed).

Land registry register:

It contains the legally defined data of all real estate in the country, the rights related to the real estate and other facts relevant from a legal point of view. It also contains the personal identification and residential address data of the persons registered there.

Land registery number:

Marking suitable for unique identification of the property, per townships (per district). Its structure is the following: The numbering of the outer area starts with “0”. Designation of condominiums: in the interior area, the numbering of the plots starts with 1, if the topographical number contains the sign “/”, it means that the original plot has been divided, if several buildings were built on the plot, then “A-B-etc” marks the buildings, and and then the apartments in the building are numbered. (eg: 35436/2/A/34)

Property sheet:

A document that contains all the important information about a specific property based on the data of the real estate register. What it contains: – issuing land rengistery office details, – the address of the property; its location; land registery number – postal address of the property, – stamp: registration number, content, – name of the property; numerical data, – ownership data, – other rights and facts, – signature; issuing land office seal.