ADVICE TO LANDLORDS

ABOUT PROPERTY RENTALS IN GREECE

1. PRELIMINARY. Do not ever ask or accept advance payment and you do not ever give keys to candidate tenant before you have verified his identity and his Tax Serial Number (AFM) and before you have signed a rental contract that you, or your lawyer has drawn for you. In important rentals, if the candidate tenant is completely unknown to you, do not hesitate to ask for proof of his solvency, or ask him to present a solvent guarantor to co-sign the contract. Never rent your real estate with your own telephone connection! Never accept to pay money in advance in anyone who promises to find tenant or purchaser for your real estate!

2. DURATION. The house rentals in Greece have a legal duration of minimum three years, which binds both landlord and tenant, even if they are signed for a shorter period. Commercial rentals bind the landlord for twelve years, but to take back the premises without compensation the landlord must wait until sixteen years of rental are completed. The duration however that is agreed and entered in the commercial rentals is usually smaller, taken into consideration that the lessee can leave also before their expiry, if, after the first year warns the landlord three months before his departure, and pays to him a compensation of one monthly rent.

3. RENTAL CONTRACT - REGISTRATION. In the rental contract the landlord must specify the amount of (usually monthly) rent, an additional amount of 3,6% for stamp duty (except for house rentals) and the percentage (or other agreement) on the future annual increase of the rent. The landlord must deposit a copy of the contract to the Tax Revenue Service within 30 days from the date of signature, and at the beginning of next year must also declare the annual rent in his the Income Tax annual Declaration, otherwise, among other consequences, cannot go to Court to have the tenant evicted!  Do not ever accept by any chance an eventual proposal of your tenant for declaration of a smaller amount of rent!

4. USE OF PREMISES. In the rental contract you must always determine specifically the type and the nature of use of your real estate property that you let (shop, laboratory, deposit, main or secondary residence etc.), and the names and tax registration numbers of all individuals or companies that will use your property.

5. TEXT OF RENTAL CONTRACT. Use exclusively the model contracts that are distributed by the Information Office of Hellenic Property Federation (POMIDA), at the center of Athens, 15 Sofokleous Street, 4^th floor, and in all the big cities of Greece, including a basic model in English, instantly available to all our members on-line through our website (please go to our Members Area). Models of texts for all kinds of rental agreements (in Greek) are available to all members as above. On important rentals, you must always go to your lawyer! Drawing the contract is your responsibility! Be particularly careful if you are asked to sign a lease drawn up by the lessee!

6. BUILDING INSURANCE. Check your homeowner's insurance policy. Most don't cover damages done by a renter, so you'll have to purchase an additional policy to cover not only your home and any contents you leave, but also third party liability issues. POMIDA, since 2003, has secured for its members the best policy, the "POMIDA Collective Building Insurance Scheme" with the best coverage of damages and the most competitive cost in the market! Find out about it through our website and join now!

7. RELATIONS WITH TENANTS. Do not ever forget that a rental, particularly a residential one, is not only a financial transaction, but it is also a permanent human relation, so your behaviour towards your tenant must always be a human one! Do not go to courts before you have exhausted all possibilities of friendly settlement of your eventual disputes with your tenants. Do not forget that a good tenant is always preferable than a good (higher) rent! For this reason, do not seek for high rents, because finally you will collect less!

8. ATTENTION IN EVERY STEP! We remind you once more that letting out your real estate property can be a risky business, if you are not accustomed to it! Therefore be always very careful and do not take any actions if you haven t previously consulted your lawyer or our organisation! POMIDA is here to help you!