Residential Lease Agreements

The real estate market in Georgia, especially in Tbilisi and Batumi, is developing dynamically, which highlights the necessity of correctly and legally executed residential lease agreements. Renting an apartment or house might seem like a simple process at first glance, but without a written agreement or with an inadequate contract, relationships often lead to legal disputes. A residential lease agreement is the primary legal document regulating the relationship between the landlord (owner) and the tenant, defining their rights, duties, and responsibilities. Often, parties use templates found on the internet that do not account for the specifics of the situation or recent changes in Georgian legislation, creating serious risks for the future.

What Does Residential Lease Service Cover?

Legal services related to residential lease agreements are complex processes aimed at protecting the interests of both parties and preventing potential conflicts. Specialists registered on the Legal.ge platform offer full legal support, which includes:

• Drafting Individual Agreements: Instead of standard templates, the lawyer prepares a document tailored to the specific property and the agreement between parties (e.g., furniture inventory, pet policies).
• Reviewing Existing Agreements: If the other party has provided a ready-made contract, a lawyer will review it and point out hidden dangers or unfavorable terms.
• Tax Consultation: Selecting the optimal tax regime for the landlord (e.g., registering for the 5% tax regime) and explaining relevant declaration rules.
• Defining Security Mechanisms: Clear formulation of conditions regarding security deposits, penalties, and compensation for damages.
• Registration at Public Registry: For long-term leases (more than one year), organizing the registration process of the agreement at the Public Registry.
• Preparation of Acceptance-Delivery Acts: Documenting the condition of the property and inventory, which is crucial for the return of the deposit at the end of the lease.

Common Real-World Scenarios

During residential leases, parties often face problems that can be avoided with the involvement of a qualified lawyer:

• Non-return of Deposit: After the lease expires, the landlord refuses to return the deposit, citing natural wear and tear as damage, which legally should not be considered as such.
• Non-payment of Rent and Eviction: The tenant fails to pay rent and refuses to vacate the apartment. The owner wants forced eviction, but calling the police is often ineffective without a court decision.
• Property Damage: The tenant damaged expensive appliances or furniture, but the contract did not specify the value of items or the compensation method.
• Early Termination: One party wants to terminate the contract early, while the other demands compensation or refuses to cancel the agreement without prior notice.
• Currency Exchange Rate Fluctuations: The contract is in a foreign currency, but due to sharp rate changes, one party demands a revision of the amount, which the other party refuses.

Georgian Legal Framework

Residential lease relationships are regulated by the Civil Code of Georgia. The legislation establishes the rights and obligations of the parties but leaves a wide scope for contractual freedom. It is important to know that according to the Civil Code of Georgia, if the lease term exceeds one year, it is recommended to register it in the Public Registry to ensure validity against third parties. Additionally, the Tax Code of Georgia defines the rules for taxing income received by individuals from renting out residential space. Specifically, there is a preferential regime that provides for a 5% income tax instead of 20% if the individual registers with the tax authority as a landlord. Ignorance of these regulations can lead to financial penalties.

Step-by-Step Service Process

Working with a Legal.ge specialist on residential lease issues involves several clear stages:

1. Initial Consultation: The lawyer understands your needs, the status of the property, and the desired conditions.
2. Risk Analysis: Potential risks are discussed (e.g., specifics of dealing with foreign tenants, tax obligations).
3. Document Preparation: A draft contract is prepared in Georgian and, if necessary, in a foreign language (bilingual agreement).
4. Negotiation and Signing: Discussing the draft with the other party, making amendments, and signing the final version.
5. Registration (if applicable): Lawyer assistance in the registration process at the Public Registry and the Revenue Service.

Why Choose Legal.ge?

Legal.ge is a unique platform that connects you with experienced real estate law specialists. Through us, you find not just a lawyer, but a verified professional who understands the specifics of the local market and the nuances of lease relationships. Specialists presented on Legal.ge will help you avoid misunderstandings, protect your property or rights, and ensure a stable lease relationship. Trust in qualification and act with peace of mind in full compliance with Georgian legislation.