Many foreigners and local people have property they rent as an investment. Even though everyone has probably heard of the dangers associated with the laws governing the relationship between a tenant and the owner (Civil Code 40/1964 Coll § 685), few realize that an unpleasant and knowledgeable landlord could be difficult. However, it is possible for owners to protect themselves. ادهنتر
Firstly, take the following cases as an example where the law could have a serious influence on an owner and the return on investment he gets on the property.
I. An owner who wishes to sell his property must first offer it to the owner at the price requested. The owner must allow the tenant to decide for six months.
Legal rights of a tenant: If the full six months are not provided, a tenant may block the purchase process of the sale of a property.
II. Even after giving reasonable notice, the owner does not have the legal right to enter his property unless the right of access is specified in the contract.
Legal rights of a tenant: a tenant may refuse access to the owner or a designated person by the owner in the process of finding another tenant or visiting a possible buyer.
III. Unpaid or unwanted tenants are extremely difficult to evict under Czech law.
Legal rights of a tenant: A tenant can stop paying rental and spend two years in your property while your case is being brought before the Czech court system.
IV. Money collected as a deposit of damages can seldom be used to pay for the lodger's damages.
Legal rights of tenants: unless a final decision of the court has been taken regarding the use of a damage deposit or if the tenant agrees in writing to use the damage deposit, the tenant shall return it all to the tenant.
These certainly do not appear to be fair terms, but rather partial to the tenant. This is the current state of Czech law, however.
The above situations may never occur as most tenants do not know their rights. However, if you get an unpleasant and knowledgeable tenant, your investment could actually be detrimental.
How are owners safeguarding themselves? We recommend a two-tier contract system as a solution to these situations where the actual first tenant (i.e. the Civil Code relationship 40/1964, Coll § 685) is to be found with a trusted friend or partner. They can't be a co-owner and must be over 18 years of age but they can be your married partner. This is the first level agreement.
Then the actual contract that occupies your apartment is a sub-lease agreement. This agreement, under Czech law, does not fall under the same code of law as the direct relationship between the owner and the tenant and the contractual terms are in effect agreed between both parties without breaching other rights laid down by law such as the maximum penalty in respect of late payments. This is the second level contract.
If the rental amount of the first tier and the second tier is the same, there is no net income for the first tier renter, thus avoiding a possible tax problem.
The investment definition is: "investment of money or capital to earn profit, as interest, income or value appreciation." (About dictionary.com.) Protect your Czech investment by implementing a secure and fair leasing system.