Photo: freepik.comAlthough there are no official data on how many people rent out real estate in Serbia, estimates are that more than 500,000 properties are rented out every day. When renting real estate, the contract is an item that you must not ignore.
According to lawyers, the Law on Obligations does not prescribe a special form of lease agreement, which means that it can be concluded even orally. However, a special form of lease agreement can be provided by other laws, so the apartment lease agreement must be concluded in writing.
The rental agreement can be concluded for a fixed or indefinite period.
"When signing a lease agreement for an indefinite period, you should know that it can be terminated by either party, with a notice period. If the length of the notice period is not agreed, or is not determined by law, it is eight days. It is important to note that after the expiration of the lease agreement concluded for a certain period of time - if the lease is still in effect, i.e. if the tenant uses the real estate, and the lessor continues to receive rent - it is considered that the parties have concluded a new agreement under the same conditions as the previous one , but for an indefinite period of time", explain the lawyers from the law office Stojković Advokat.
They add that the two parties can agree on the specific terms of each contract, but the main obligations of the lessor and the lessee are always the same.
Namely, the lessor is obliged to hand over the leased property, to maintain it and to protect the lessee in case of legal and physical defects (protection against eviction). The main obligations of the lessee are to pay the agreed rent and use the property in accordance with the lease agreement and, of course, to return the real estate at the end of the lease.
It should be noted that, although the maintenance of the property is the responsibility of the lessor, the costs of minor repairs caused by the regular use of the property, as well as the costs of the use itself, are borne by the lessee. Also, the lessee is not responsible for wear and tear caused by regular use of the property, as well as for damage caused by its deterioration.
In the case of alienation of the leased immovable property, the place of the lessor is assumed by the one who acquired ownership of the property. In that case, the new owner does not have the right to demand that the lessee hand over the leased real estate before the expiration of the time specified in the contract, and if the duration of the lease is not specified by the contract or the law, then before the expiration of the notice period.
"Unless otherwise agreed, the new owner of the property that was previously leased has the right to rent starting from the first following period after acquiring the property. In case the previous lessor received rent in advance, he is obliged to transfer it to him. When, due to the alienation of the leased immovable property, the lessor's rights and obligations are transferred to the new owner, the lessee can in any case terminate the contract by observing the legal notice period", our interlocutors point out.
PAYMENT OF REAL ESTATE RENTAL TAX
According to the Law on Personal Income Tax, all lessors are obliged to set aside a part of their income for the state in the name of taxes. The only exception to this rule is legal entities, where the tax is transferred to the company that is the lessee.
As previously explained to our site by Miliš Mitić from the City Expert agency, signing a lease agreement that is not notarized does not increase the effect that the owner has to pay taxes at that moment.
"He is obliged to cover the tax even without that contract. In Serbia, it is still a taboo topic. Most landlords don't pay the right amount of tax or don't pay it at all. A good reason for this state of affairs is certainly the high tax. The state adds 20 percent to the annual rent. "Sometimes landlords transfer this obligation to tenants by raising the rent by the amount of the tax, but hardly anyone agrees to rent a property under those conditions," Mitić explains.
He adds that it is not worthwhile for the owner of the apartment to file a tax return, because according to his calculations, it reduces his income.
"For example, if the apartment costs 500 euros per month and he pays the tax, he will have 400 euros left. He calculates in his head that he earned 100 euros less. In this form, the tax is not applicable enough and has not yet taken root", concludes Miloš Mitić.
HOW TO SUBMIT AN APPLICATION TO THE TAX ADMINISTRATION?
The taxpayer (lessor) is obliged to submit a tax return to the Tax Administration, and to the branch on the territory of which the leased real estate is located, within 30 days from the date of conclusion of the lease agreement.
Only the taxpayer can submit this tax return, that is, only the natural person who receives the rent (lessor). Other persons, including the lessee, even if they have a copy of the lease agreement, are not authorized by law to submit this tax return, unless the lessor authorizes them to do so.
Source: biznis.rs
