When does the agreement become valid? What happens if the tenant gives up the deal before it takes effect?

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The rental agreement becomes when both parties have signed the document.

Rendin's protection comes into effect when the following conditions are met (see also General Terms of Rental Agreement v.4.2):

  1. Both parties have signed the agreement.
  2. The landlord has handed over the property to the tenant.

Suppose the rental agreement is concluded for the future, for example, one or more months before the handover of the rented property. In that case, we strongly advise you to consider what will happen if the tenant withdraws from the agreement. We suggest some options that the landlord can use to mitigate the risks and through which the tenant can confirm their serious wish to rent the place.

Applying a booking fee. It must be written to the special terms in the agreement with a further explanation:

  • The amount of the booking fee and the date of payment.
  • When and under what circumstances will the tenant be entitled to a partial or full refund?
  • When and in what circumstances is the owner not required to pay it back in part or full?

Asking for the first rent payment immediately in advance. The agreement must be set out in the special conditions of the contract with a further explanation:

  • The amount of the rent and the date of payment.
  • When and in which case will it be considered the tenant's first month's rent?
  • When and in what circumstances is the owner not required to repay it in part or full?

Illustrative example. The tenant pays the landlord a reservation fee of €800 in a situation where the contract has already been signed, but the handover and move-in will not take place for two months. On the one hand, the tenant wants to be sure that the landlord will keep the rented house for him. On the other hand, the landlord wants to protect themselves against the unexpected, where the tenant wants to withdraw from the contract without suffering any consequences. If in the meantime, the tenant decides to withdraw, 100% of the money paid will remain with the owner. If the tenancy agreement comes into force and the tenant moves in, the landlord will return €200 of the booking fee to the tenant, and €600 will be considered as the first rent payment.