Macedonian tenancy laws are pro-landlord

July 17, 2006

Rents: Can landlord and tenant freely agree rents in Macedonia?

There is no rent control in Macedonia; rent is determined by the market.

Macedonia Bitola housesAccording to the law, the rent, unless otherwise stated in the contract or commonly practiced in the locality of the property, should be paid every six months for lease periods of over one year. For shorter lease periods, rent should be paid after the expiration of the contract. Common practice, however, is that rent is paid every month for long lease agreements.

The contract must clearly indicate the rent, the type of rental payment (whether in cash or in kind), as well as the payment schedule.

Deposits

The terms of rental and security deposits must be included in the lease contract. In practice deposits amounting to a month’s rent are paid.

What rights do landlords and tenants have in Macedonia, especially as to duration of contract, and eviction?

Lease contracts must be notarized.

Lease agreements with a definite lease period are terminated automatically at expiration of the period. A lease agreement is considered renewed, on the same terms and conditions, if the tenant continues to use the property after the expiration of the lease agreement and the landlord does not have any objections. If the landlord does not wish to renew the lease agreement and the tenant does not vacate the space within eight days, the landlord is obligated to initiate a judicial procedure for eviction by force. That judicial procedure can last minimum of six months.

The cancellation period for indefinite lease agreements is eight days, unless the lease agreement states otherwise.

Early termination

The landlord can terminate the lease contract early in the lease period if:

  • The tenant failed to pay the rent after a fifteen day allowance from the payment schedule.
  • The tenant failed to secure the landlord’s approval before subletting the property.
  • The tenant inhibits the maintenance of the property, such as repairs and removal of defects on the property.
  • The tenant performs reconstruction, restoration and adaptation in the property without the consent of the landlord.
  • The tenant uses the property in such a way that it disturbs the peace.

A written eviction notice, referred as a recommendation letter, must be issued by the landlord to the tenant. Eviction period is fifteen days.

A special case: The landlord can evict the tenant early within the lease without giving a cancellation notice if the tenant did not use the property for its intended purpose.

The tenant, on the other hand, may terminate the lease early in the following cases:

  • Repairs prevented the tenant from fully utilizing the property.
  • The property was sold during the lease.

How effective is the Macedonian legal system?

Macedonia Ohrid apartments for saleAlthough the Law on Household (or Law on Habitation) were created to regulate lease agreements on dwellings, in practice it is rarely used (almost never), as most contracting parties prefer referring to the Law on Obligations to regulate landlord and tenant relations.

There are no special tribunals that hear complaints related to lease agreements. All complaints are directed to primary courts and are usually decided after a year or so.

Legislation

Law on Obligations Title XII Lease Articles 570-602. No. 18/01, March 2001.

Law on Household, Official Gazette of R. Macedonia, number 21/98.

   

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