Tenancy Agreements – What to Check Before Signing

You’ve finally managed to find a nice flat at a reasonable price; the landlord has chosen you and sent you a contract to sign. Ideally, you should have it reviewed by a lawyer, which we at the Integration Centre Prague can arrange for you free of charge. If you do not wish or are unable to use this option, the following text will advise you on the basic things to look out for, what to clarify before signing, and why.

Tenants’ bargaining power is very weak these days, and you are unlikely to get the contract amended according to your suggestions. However, it is often worth at least trying. Moreover, the landlord’s attitude during negotiations alone will give you valuable insight into what your future coexistence is likely to be like. After all, tenancy is primarily a relationship between people. Clear rules in the contract are essential, but mutual trust, respect, and communication are also necessary for trouble-free tenancy. If you feel that the landlord is not being honest with you or is being inflexible, it may be safer to avoid them.

Tenant protection

Although freedom of contract generally applies under Czech law, in the case of flat tenancies it is restricted by law to protect the tenant as the weaker party. In practice, this means that you cannot agree on absolutely anything in the tenancy agreement if it would conflict with the tenant’s statutory rights. Although we will use the word ‘flat’, everything mentioned also applies to a house – the nature of the property is not relevant for the conclusion of the contract.

The relationship between the landlord and the tenant is not balanced. The landlord owns the flat, while the tenant uses it to meet their basic need – housing. For this reason, the law protects the tenant as the weaker party. This is reflected precisely in the restriction of freedom of contract. Specifically, two basic rules apply:

Firstly, if there is a provision in the tenancy agreement that limits or reduces the tenant’s legally guaranteed rights, such a provision is disregarded. In other words, you are under no legal obligation to comply with it. Example: the Civil Code states that the tenant has the right to welcome anyone into their home. If there were a clause in the agreement prohibiting the tenant from having visitors, such a clause would be invalid.

Secondly, if the contract contains a clause that imposes a clearly unreasonable obligation on the tenant, such a clause is also disregarded. As an example, we might consider a clause in the contract requiring the tenant to photograph the entire flat once a week and to send the photos to the landlord for inspection. Such a clause would be invalid. The unreasonableness of the obligation is assessed according to the circumstances, and in practice this can be very complex.

A contract containing such provisions will remain valid and binding in all other respects. The legal consequence is that the tenant may assert their statutory rights and need not fulfill the unreasonable obligation. If they were to be given notice of termination for this reason, the court would declare it invalid. While this sounds good, nowadays most tenancy agreements are concluded for a fixed term. The practical consequence of any behavior the landlord does not approve of may be that the contract is not renewed. It is therefore better to identify and resolve any contentious clauses before signing the contract, rather than arguing later about what is valid and what is not.

Basic information

1. Type of contract

Now, let’s look at the actual wording of the contract. Always ask for a standard tenancy agreement. The principle of tenant protection described above clearly applies to this.

If the landlord, estate agent, or agency presents you with a sublease agreement to sign, be on your guard. Those three extra letters in the title of the agreement could cause you a world of trouble. The law does not make it entirely clear what a sublease actually is or what rules govern it. All manner of agencies, brokers, and other unscrupulous landlords exploit this ambiguity and claim that tenant protection does not apply to subletting agreements. They thus set out the rights and obligations in the subletting agreement entirely to their own advantage, in a confusing and incomprehensible manner.

The use of a subletting agreement when renting a room (shared accommodation) or a cooperative flat is not necessarily suspicious in itself, but we generally recommend not signing subletting agreements, or if you do, reading the contents thoroughly and ensuring you understand them. In the event of a dispute, even the court may not rule in your favour.

There is also an accommodation contract, which is used for hotels, hostels or student dormitories. Strictly speaking, it should not be used for long-term accommodation, although this is often the case in practice. An accommodation contract does not provide protection for the tenant. However, if you do decide to sign one, read both the contract and the accommodation rules, to which these contracts often refer, very carefully.

2. Who is the landlord

The contract must clearly identify the contracting parties. Typically, the landlord is also the owner of the flat, but this is not a prerequisite for a valid tenancy agreement. Ask for proof that the landlord has the right to let the flat. It is not true that if you sign a contract with someone other than the owner, it must be a subletting agreement.

If the flat changes ownership during the tenancy (e.g. if it is sold), this does not affect the validity of the tenancy agreement. Put simply, the new owner takes over the agreement with all its rights and obligations. The landlord cannot terminate the tenancy agreement simply because they want to sell the flat. Agreements sometimes contain a clause stating otherwise—but such a clause is invalid.

3.Who is the tenant

If you are living in the flat with your family, it is sufficient for one of the adults to be the tenant. The others may (but need not) be listed in the agreement as members of the household. By law, married couples have a joint tenancy, meaning both have the same right to use the flat. It does not matter in whose name the ‘contract is written’. At the same time, they are jointly liable to the landlord for fulfilling their obligations.

Shared accommodation (renting a room) is handled differently in practice. Bear in mind that your legal standing (and corresponding obligations) will vary depending on whether or not you are named as a party to the contract. In any case, agree thoroughly on your rights and obligations not only towards the landlord but also amongst yourselves. In particular, the termination of the contract by one flatmate and the subsequent settlement of the deposit or outstanding payments is often a source of dispute. Ask about the rules regarding privacy, cohabitation and running a shared household (cleaning the premises, use of equipment and purchasing items).

4. What am I renting?

The flat and any associated spaces (cellar, garage) must be clearly specified in the contract, ideally by address, flat number and land registry details. For the Ministry of the Interior to register your residence at the address, the property must be designated for residential use in the Land Registry. It cannot be a studio, office, warehouse or other non-residential premises (see the previous article on reporting a change of address). The contract cannot prevent you from registering your residence at the address. The landlord cannot charge a fee for issuing proof of accommodation, as they are obliged to provide this confirmation; otherwise, they may be fined by the Ministry. If you come across such provisions in the contract, clarify the procedure with the landlord regarding the authorities.

The handover report should specify what furnishings the landlord is providing for your use (e.g. furniture, appliances) and the condition of the flat. It is precisely the condition of the flat that is often a source of disputes at the end of the tenancy. The contract may refer to house rules – read them before signing.

Payments

1. Rent

Rent is the payment for the right to use the flat. Its amount is not regulated in any way in the Czech Republic. The contract should specify a fixed rent amount. It should also clearly state the period for which this amount is payable. Rent is usually paid one month in advance.

Rent increases during the tenancy are a different matter. Here, it is necessary to distinguish between three different situations:

The first is a rent increase proposed by the landlord. Provided the legal procedure is followed, it is possible to increase the rent to a level comparable to that in the local area, with a maximum increase of 20% over the last three years.

This mechanism is often replaced in the contract by another mechanism whereby rent increases automatically. However, increases should only take place once a year and under clearly defined conditions. The landlord should not be able to decide on the rent at their own discretion. It is possible to agree on an increase by a fixed amount or percentage (e.g. starting with the rent for January of each year, the current rent increases by 2%). Such an arrangement is clear-cut and both parties know what to expect.

In practice, it is more common to increase rent by reference to some indicator. A typical example is the ‘inflation clause’. If you find this in the draft contract, consider how the increase will work in practice. Ideally, discuss this with the landlord using a specific example. The clause must be clearly agreed. For example, a reference to “inflation according to the Czech Statistical Office” is not sufficient, as the Czech Statistical Office publishes dozens of different inflation indicators. Be wary of provisions under which rent increases are not actually automatic, but are at the landlord’s discretion, who may or may not exercise this right. In practice, it happens that the landlord does not apply the increase (e.g. forgets to do so) and later demands back payment. The contract should therefore set out the individual steps and deadlines in detail. It should not allow for rent increases to be applied retrospectively.

The paradox is that for fixed-term contracts – i.e. in the vast majority of cases – an inflation clause is unnecessary. The landlord has a much simpler way of increasing the rent. Before the tenancy agreement expires, the landlord can offer the tenant a written addendum to sign, which extends the tenancy but also sets a higher rent. In this case, no statutory limits apply, as you are essentially renegotiating the terms of the agreement from scratch. This approach is also more advantageous for the landlord because market rents often rise faster than inflation itself. The tenant is then left with the choice of accepting the new rent or moving out once the tenancy ends. If there is an inflation clause in the contract, we recommend clarifying whether it applies even if the rent has already been increased during the year by an addendum. This overlap can lead to disputes.

2. Services

Housing also involves energy consumption (water, heating, etc.) and the use of services (lift, waste collection, cleaning and corridor lighting). These services are usually provided by the landlord. Payments for services are separate from the rent, as the cost of services depends on the tenant’s individual consumption, the number of people in the flat, etc. The final cost cannot be determined in advance, so the tenant pays the landlord advance payments throughout the year, which are settled at least once every 12 months based on actual consumption. Agree on when this billing period begins and how long it lasts. If it corresponds to the calendar year, state this clearly in the contract. The tenant entrusts the landlord with substantial sums in the form of advance payments; consequently, their handling is strictly regulated by specific legislation.

Agree precisely in the contract which specific services the landlord provides. The contract should not contain vague terms (“additional charges”, “other costs”) or open-ended lists (“etc.”). References to documents whose content you do not know and cannot predict or influence are also inappropriate. These include various “records/calculation sheets” or statements from the owners’ association (SVJ). These documents serve to settle finances between the flat owner and the building management. As a tenant, you only pay for some of the items listed in such documents – the services you use whilst renting the flat (water, heating, lift, cleaning and lighting of communal areas).

Conversely, you do not pay the costs and fees associated with owning the flat. These typically include the repair fund, insurance for the entire building, or fees arising from membership of the SVJ. For example, the repair fund is a regular contribution by the flat owner towards the maintenance and improvement of the common areas of the building. This is not a service provided to you. The landlord therefore cannot cover these costs from your advance payments, even if this were expressly agreed in the contract. Such an agreement would be invalid. The landlord must refund any amounts paid to you.

Before signing, find out your household’s average consumption and agree on the amount of the advance payments accordingly. If the advance payments are too low and do not cover consumption, you will face an unpleasant surprise at the end of the billing period in the form of a high outstanding balance. It often happens that living in a flat ends up being considerably more expensive than the advert suggested, simply because actual consumption was underestimated.

Electricity, gas or internet are often ‘transferred to the tenant’. In such cases, you are expected to enter into a contract with the provider of the specific service yourself. You then pay the provider directly. From the point of view of control and accountability, this is more advantageous for both parties, but for shorter tenancies or for foreign nationals, it can be disproportionately administratively burdensome.
A simpler alternative to advance payments is to combine the rent and utilities into a single fixed lump sum amount. In this case, actual consumption is not taken into account at all; you pay an agreed fixed amount for everything. No billing is carried out. This model is not very common, as the tenant are no motivated to be economical, and the landlord runs the risk of having to cover unexpectedly high consumption costs out of their own pocket. On the other hand, you may come across a sort of hybrid model in contracts, where ‘consumption is billed only if there is an underpayment’. In other words, the landlord keeps any over payment, but the tenant must cover any shortfall. Such an arrangement is invalid.

3. Deposit

The deposit (referred to in the law as a “security deposit”) may amount to a maximum of three times the monthly rent. The landlord retains it in case the tenant owes them anything. It must be returned on the last day of the tenancy, though the landlord may deduct any actual, existing and quantified debt from it. The deposit cannot be forfeited by the landlord as a penalty or ‘lost profit’ because the tenancy ended prematurely. The deposit cannot be withheld to cover uncertain future debts, e.g. from a utility bill that has yet to arrive. Any provisions to the contrary are invalid.

As the landlord has the funds (the deposit) at their disposal for the entire duration of the tenancy, the law grants the tenant interest on the deposit as compensation. Previously, these were relatively negligible amounts, and the parties were often unaware of their entitlement. In recent years, banks have raised interest rates and, as rents have risen, so too have security deposits. For longer tenancies, the interest can therefore amount to a significant sum. The interest rate should be the same as if the landlord had borrowed the same amount from a bank on the day the contract was signed. A calculator is available on the website of the Czech Tenants’ Association. Provisions stating that the deposit does not bear interest, or that it “bears interest at a rate of 0.1%” or “the interest rate is equal to that on a current account”, are invalid, as they deprive the tenant of their right to interest. You may specify a particular interest rate in the contract, but it should respect the level guaranteed by law and any other relevant circumstances.

End of the tenancy

1.Expiry of the term

Tenancy agreements are now usually concluded for a fixed term, and an extension is renegotiated before the tenancy period expires. The landlord is never obliged to extend the agreement. Although the law stipulates that the tenancy is automatically extended if the tenant continues to occupy the property and the landlord does not ask them to vacate within 3 months, the contract may alter this arrangement, set out further conditions, or exclude automatic renewal entirely. We recommend that you thoroughly understand whether, and if so when, you need to take action to ensure the tenancy is (not) renewed.

2. Notice of termination

Before the end of the tenancy period, the landlord may give the tenant written notice to terminate the tenancy, but must have a specific and serious reason for doing so. Typically, this will be a breach of contract by the tenant. Provisions in the contract allowing the landlord to terminate the tenancy without giving a reason or for any reason are therefore invalid. The notice period must be three months. A shorter notice period is only permitted if the tenant has committed a particularly serious breach of the contract (e.g. non-payment for a period of three months, serious damage to the flat). In such cases, the landlord may terminate the contract and demand the immediate return of the flat.

Tenants often believe they can terminate the contract without cause – but this only applies to a tenancy of indefinite duration, or if a fixed-term contract expressly provides for it. If the contract says nothing about termination, the law applies, which is unfortunately very vague: the contract can only be terminated early if something in your life has changed so drastically and unexpectedly that you cannot continue with the tenancy. For example, you might unexpectedly lose your job and have to move to another town, or you might be unable to use the flat due to an injury. In such a case, you may give written notice with a three-month notice period.

Repairs and damage

1. Maintenance and repairs

The tenant is responsible for arranging and paying for routine maintenance and minor repairs. These terms are defined by Government Regulation No. 308/2015. We recommend that you familiarize yourself with the regulation, as tenancy agreements often refer to it. Every tenant should be aware of these obligations and treat the flat with respect.

In short, routine maintenance involves the regular upkeep, inspection and cleaning of individual parts of the flat and its fittings. The law does not set any financial or quantitative limit.

Minor repairs fall into two categories: 1) repairs to specific items in the flat listed in the regulation, and 2) any other repair costing up to CZK 1,500. A total limit applies to minor repairs, under which the tenant is obliged to pay a maximum of 150 CZK per square metre of the flat’s floor area for repairs in a single year. A repair is either minor (arranged and paid for by the tenant) or not (the tenant notifies the landlord, who arranges and pays for it).

Example: the flat is 50 m², so the annual limit for minor repairs is 7,500 CZK. In 2026, the tenant has already paid for one repair costing 2,500 CZK and another costing 3,000 CZK. The landlord cannot ask the tenant to pay for any further repairs costing more than CZK 2,000, not even in part (up to the limit of CZK 7,500). Similarly, if a single repair in 2026 cost CZK 8,000, it cannot be split between the tenant (CZK 7,500) and the landlord (CZK 500). The landlord must pay the full amount.

In practice, you may encounter a situation where the contract extends your obligations beyond this statutory maximum. Such provisions are invalid. The amounts and definitions in the government regulation may change in the future. Keep an eye on the current version of the regulation and, to avoid disputes over which limit applies, it is better to simply include a reference to it in the contract.

2. Insurance

By law, you are not obliged to take out insurance when renting a flat. However, landlords often include this obligation in their contracts. In such cases, we recommend clarifying what type of insurance is required (home contents insurance, liability insurance, etc.), what its parameters should be (sum insured, scope of cover), what is needed to arrange it (e.g. an inventory and valuation of items in the flat, details known only to the owner) and how much the premium will cost. This could, in fact, be another unexpected expense that makes living there more expensive.

Conclusion

Finding a suitable home is becoming increasingly difficult. Scammers often take advantage of stress and time pressure. It is essential to familiarise yourself thoroughly with every contract or addendum before signing and not to allow yourself to be manipulated into a situation where you sign something you do not fully understand.
If you have any doubts about the content of a contract, whether due to the language or its complexity, never sign anything under pressure. In such cases, the best course of action is to seek professional assistance. The Integration Center Prague offers free legal counselling, including explanations and review of the content of tenancy agreements.

We can help

ICP offers free legal advice, including explanations and reviews of the content of tenancy agreements. Book an appointment by phone: +420 252 543 846 or by email: info@icpraha.com

This article was created in cooperation with INN. Thank you.