Statutory Tenancy
The Statutory Tenancy Law of 1983 (Law 23/1983) is the law governing statutory tenancy. Its primary purpose is to apply to certain properties and in certain controlled areas to protect the tenant who remains in possession of the property after the expiry or termination of the first tenancy.
Statutory tenancy is therefore a creature of the law and takes place independently of the will of the parties.
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Conditions of Statutory Tenancy
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The rental property must have been completed as a building by 31.12.1999 and must have been rented or offered for rent on that date.
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Statutory tenant, the tenant must at the expiration or termination of the first tenancy (i.e. the first tenancy agreement) still occupy the property, regardless of whether a second tenancy agreement was signed.
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Controlled area, the property must be located within the boundaries of a controlled area declared as such by decree of the Council of Ministers. The most recent decree is Decree 519/2007.
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Protections of Statutory Tenancy
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Possession of the property is possible in perpetuity, provided that the statutory tenant pays his rent.
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The owner of the property can regain possession of the property only on grounds of eviction arising by law, and not in connection with the tenancy agreement.
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The increase in rent is regulated by law, and not by whatever may have been agreed in the tenancy agreement
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Even in the case of late payment of rent, eviction is not automatic, the law gives protection to the statutory tenant as a certain procedure must be followed.
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Eviction Grounds
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Delayed rents.
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Nuisance or use of the premises for illegal or immoral purposes.
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Due to destructive acts.
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Subletting in breach of an express obligation to the contrary.
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Lawful subletting that brings the tenant a profit unreasonably disproportionate to the rent paid to the landlord.
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Where the dwelling is required by the Landlord (or his/her spouse, child, dependent parent or spouse) for occupation purposes. In case the owner is a family company for the occupation of a shaeholder of the company.
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In case the premises is claimed by the Owner(or spouse, children) for his/her business or for business purposes.
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For the demolition of the property.
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For the demolition and reconstruction of new premises.
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For materially significant changes that will result in substantial and significant alterations to the property for purposes of its use.
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For the carrying out of works to a listed building.
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For carrying out a development plan
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For compulsory expropriation
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Required by local authority
