#LifeInCzechia Finding a nice place to live in the Czech Republic can be challenging. You may come across two different types of offers – renting and subletting. The problem is, they look pretty similar. But watch out, they differ in key aspects. Before signing a contract, have a look at this article and learn the specifics.
By how much can be your monthly rent increased?
Renting Or Subletting?
The difference between renting and subletting is in the type of contract. When you rent an apartment, you sign a lease directly with the landlord. So you are the primary tenant with responsibilities such as paying rent, and utilities and following the terms and conditions.
When you sublet a place, you rent it from the primary tenant (a landlord agreement is needed). Therefore the contract is not directly with the landlord and the responsible person (for any damages or problems) is the original tenant. Looks great, but there are some limitations and legal restrictions.
Main Differences
Let’s have a look at the main differences between these two kinds of contracts.
Contract Duration
The rental agreement is usually provided for one year but can be set to any duration after the landlord and tenant’s consent. In case of sublease, the duration can be only as long as the duration of the rental agreement.
Legal Protection
Rental agreements are regulated by the Civil Code. They offer significant legal protection for the tenant. The landlord must ensure the apartment meets the required criteria – the condition of the property and the supply of water and electricity. They are also responsible for certain repairs.
On the other hand, a sublease agreement has no legal base and only little protection. The contract is dependent on the rental agreement, so if that changes, the sublease agreement provides you no protection (f. ex. in case of eviction).
Contract Termination
Termination of a rental agreement is possible based on conditions defined in the Civil Code. It can also be ended upon expiry of the term of the agreement or in other cases defined in the lease agreement.
The sublease agreement can be terminated by both parties without giving any reason. It automatically expires when the rental agreement is terminated.
Permanent Address/Registered Office
It is possible to establish a permanent residence or registered office in your rented apartment. A landlord’s agreement is not needed. Watch out if it’s not regulated in the rental agreement.
On the other hand, a subtenant always needs the consent of the landlord to establish a permanent residence or a registered office.
Rent Increase
The monthly rent is also regulated by law. It can be only increased to match the price of similar rentals on the market and by a maximum of 20% every three years.
In some cases, an inflation clause is created to allow the rent to be increased depending on the inflation rate. Make sure to check your contract for any regular increases that can be stated there.
Sublease rent is not regulated in any way, so from a legal perspective, the price might change every month. Sometimes it is even higher than the original rent.
Pets
According to the law, pets can’t be prohibited in a rented apartment but the security deposit might be increased.
In a sublease agreement, the conditions depend on the primary tenant and pets can be prohibited.
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Sources: dostupnyadvokat, realspektrum
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