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  4. Residential Leasing
  5. Residential Lease Agreements

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Residential Leasing

Residential Lease Agreements

Why is a written agreement important?

The written form fixes the thing, the period, the rent and the requirements for condition, which becomes the evidentiary foundation in a dispute. An oral arrangement weakens the position.

Who is responsible for defects in the dwelling?

The lessor is obliged to transfer the thing in a fit condition and to maintain that condition throughout the lease, so a defect affecting the use provided for by the agreement is to be raised against the lessor.

How to end the relationship without conflict?

The parties should observe the termination-period rule, formalise the return of the dwelling by an act and fix the condition — this makes the boundary between normal wear and damage objective.

What is the right of set-off?

Against a demand for rent the lessee may retain a sum or counterbalance another claim arising from the lease, subject to prior warning — a balance protected by law.

5 min·9 Jan 2026

The Concept of a Lease and the Parties' Obligations

Renting a dwelling is an everyday yet legally significant relationship whose framework is defined by civil legislation. Under a lease agreement the lessor is obliged to transfer the thing to the lessee for use for a defined period, while the lessee is obliged to pay the agreed rent to the lessor. Behind this simple formula stand many practical questions: in what condition the dwelling is transferred, who answers for defects, how the agreement is terminated and in what form the document should be drawn up. On this page we explain the norms that directly govern the concept of the lease, the transfer of the thing, the lessee's counterclaims, the termination period of the agreement and the return of the thing.

Transfer of the Leased Thing and Maintenance of Its Condition

The law imposes a double obligation on the lessor regarding the condition of the dwelling: the lessor is obliged to transfer the leased thing to the lessee in a condition fit for the use provided for by the agreement and to maintain that condition throughout the entire period of the lease. This means that a dwelling must not only be fit for living at the moment of transfer — the lessor remains responsible for maintaining the appropriate condition throughout the whole rental period. In practice this is decisive in disputes where a technical problem arises in the dwelling: a defect in the utilities, the roof or the heating gives the lessee grounds to turn to the lessor, and the lessor's attempts to shift the burden onto the lessee contradict the statutory distribution of obligations.

The Lessee's Counterclaims Against a Demand for Rent

Non-payment of rent often becomes the subject of dispute, yet here the law gives the lessee an additional instrument: against a demand for the rent of a dwelling the lessee has the right of set-off or of counterbalancing other claims arising from the lease relationship, and the lessee may exercise this right even where the agreement provides otherwise, provided the lessee warns the lessor in advance. In other words, a clause in the agreement prohibiting set-off cannot annul this right of the lessee — prior warning suffices. For the lessor this means that the best way to avoid a dispute when expecting rent is the proper performance of the lessor's own obligations, since an unperformed duty gives the lessee a lawful counterbalance recognised by the legislation.

The Termination Period of the Agreement

The end of a lease relationship has a temporal frame: the termination period of a lease agreement amounts to three months, except in cases where a different consequence follows from the circumstances of the case or from the parties' agreement. This rule gives the parties time — on the one hand, the lessor cannot end the relationship unilaterally and unexpectedly, and on the other, the lessee retains the opportunity to find new housing. The parties' agreement may differ from this period, which is why a careful reading of the agreement's text at the stage of signing avoids surprises at the stage of completion, and the termination clause should be drafted with an eye to the statutory default.

Return of the Thing Upon Termination

Upon the termination of a lease agreement the lessee is obliged to return the thing to the lessor in the condition in which it was received, taking normal wear into account, or in the condition defined by the agreement. Distinguishing normal wear from damage is often contested, which is why the documentary fixation of the dwelling's condition at transfer and at return — an act, photographs or a video recording — is recommended. Such material becomes the principal evidentiary source in a dispute and gives the position a clear form in court, protecting both the party claiming compensation and the party defending against an exaggerated claim.

Material on every kind of lease agreement is collected under the leasing section; on residential renting specifically — in the residential leasing section.

For other lease directions we run dedicated services: on office, retail and industrial premises — Commercial Lease Agreements, and on disputed situations — Lease Dispute Resolution.

Frequently Asked Questions About Residential Leases

What obligations do the parties have under the agreement?

The lessor must transfer the thing for use for a defined period and maintain its fit condition, while the lessee must pay the agreed rent and return the thing in the prescribed manner.

May rent be set off?

Yes, against a demand for the rent of a dwelling the lessee has the right of set-off or of counterbalancing other claims arising from the lease, even despite a contractual restriction, provided the lessee warns the lessor in advance.

Within what period is the agreement terminated?

The termination period of a lease agreement amounts to three months, unless a different consequence follows from the circumstances or from the parties' agreement — this frame balances the interests of both sides.

How should the dwelling be returned?

In the condition in which it was received, taking normal wear into account, or in the condition defined by the agreement. Documentary fixation of the condition avoids a dispute.

Lease agreement — what does it regulate?

Under a lease agreement the lessor must transfer the thing to the lessee for use for a defined period and maintain its fit condition, while the lessee must pay the agreed rent and return the thing in the condition in which it was received, taking normal wear into account. The law also gives the lessee the right of set-off against a demand for the rent with advance warning, and the termination period of the agreement amounts to three months unless a different consequence follows from the circumstances or the parties' agreement.

How We Help on Legal.ge

The lawyers of Legal.ge assist at every stage of a lease: we check the terms of the agreement, plan the fixation of evidence, prepare the formal demand or the claim and defend your interests from the position of both the lessee and the lessor. Contact us — we will assess your situation and act before the dispute escalates.

Updated: 25 Sep 2026

Verified against current law: 9 Jul 2026

Legal basis:

  • საქართველოს საგადასახადო კოდექსი
  • საქართველოს სამოქალაქო კოდექსი