LEASE LAW

For residential and roofed commercial leases, the increase for a renewed lease year cannot exceed the twelve-month average CPI of the previous lease year. Where the lease has lasted five years, the rent can be reset through a rent determination action, taking comparable rents and fairness into account.

No. For residential and roofed commercial leases, expiry of the term is not in itself a ground for eviction; unless the tenant leaves, the lease is extended on the same terms. Eviction is possible only on statutory grounds such as personal need, reconstruction, a written undertaking to vacate, two justified notices or expiry of the ten-year extension period.

If the new owner has a genuine and compelling need for themselves or their relatives, they may file for eviction after six months, provided they notified the tenant in writing within one month of acquiring the property. A property vacated for personal need cannot, without just cause, be let to anyone other than the former tenant for three years.

No. The undertaking must be given in writing after the premises have been handed over; undertakings signed together with the lease may be held invalid. The landlord must start enforcement proceedings or file suit within one month of the promised vacating date.

The security deposit cannot exceed three months’ rent and must be placed in a time deposit account. If the premises are returned undamaged and the landlord has not started proceedings within a set period, the bank returns the deposit to the tenant on request.

Yes. For lawsuits arising from a lease, such as rent determination, eviction and rent claims, applying to a mediator before filing is mandatory. Eviction and collection proceedings started through enforcement offices follow their own procedure.