Lease Agreement: Security Deposit, Costs, and Obligations of Both Parties

Most rental disputes do not arise from bad will, but rather from items that were not specified in the contract. This is a list of those most frequently omitted.

In practice, a verbal agreement is worth nothing as soon as a disagreement arises. A written contract should include at least the following.

• Information about both parties and an accurate description of the property.
• Rent amount, payment date, and payment method.
• Lease duration and renewal terms.
• Notice period for both parties.
• Security deposit amount and return conditions.
• Breakdown of costs, item by item.
• List of equipment and condition at handover.

It is customary to provide one to two months' rent. The security deposit covers damages and outstanding costs, but it is not the last month's rent paid in advance — unless explicitly stated in the contract.

A formal handover record with photographs and meter readings is crucial. Without such a record at the end of the lease, no one can prove whether damage was pre-existing or occurred during the tenancy.

The division is a matter of agreement, but in practice, a simple rule applies: the one who consumes pays for consumption, and the owner maintains the property.

• Tenant: electricity, water, gas, utility fees, waste disposal, internet.
• Landlord: building maintenance fund (pričuva), property insurance, taxes.
• Minor repairs from normal use: tenant.
• Failures in installations and major appliances: landlord.

Define the boundary between a minor repair and a breakdown by specifying an amount in the contract itself. This eliminates the most common source of misunderstanding.