-- Long Term Private Rentals --
The lease of apartments must be in written form and certified by the competent entity. The landlord can terminate the lease prior to term if the tenant has not paid the rent for two months or if the tenant sublets the apartment without the permission of the landlord.
The contract can be concluded for adefinite or indefinite period of time. A notice period of three months applies by default if not otherwise specified in the contract.
-- Long Term Commercial Rentals --
Save for specific provisions pertaining to the lease of apartments there are no specific regulations applicable to commercial leases. Commercial leases are governed by the general rules of the Montenegrin Code of Obligations.
-- Form --
A lease must be concluded in writing and make reference to the real property which is the object of the lease and the amount of rent. Otherwise, the lease is considered null and void.
-- Duration --
A lease agreement may be concluded for a definite or indefinite period. No minimum or maximum duration is fixed by law. Lease agreements concluded for more than 10 years can be registered in the cadastre as an encumbrance.
-- Termination --
Lease agreements concluded for an indefinite period of time may be terminated with eight days' notice by either party.
Rental agreements concluded for a definite period of time end after the period for which they are concluded elapses. If the tenant continues to use the premises and the landlord agrees, it is assumed that a new lease agreement is concluded for an indefinite time period on the same terms as the previous lease agreement.
The landlord may terminate the lease agreement without notice if the tenant fails to comply with the designated use of the property or does not maintain the premises in a proper state. The law further provides that the landlord may terminate the lease agreement if the tenant does not pay his rent within two weeks of receipt of notification from the landlord.
-- No right of renewal --
The tenant has no statutory right to renew his lease. A lease is renewed automatically only if the tenant continues to use the premises and the landlord agrees. It is assumed that a new lease agreement is concluded for an indefinite time period on the same terms as the previous lease agreement. No pre-emption right of the tenant.
The tenant has no statutory pre-emption rights.
-- Rent and rent cap --
The amount of the rent is freely determined by the parties. Rent must be quoted in EUR or in another currency or the calculation used must be stated. Otherwise, the lease agreement is rendered null and void. If not determined otherwise, rent is paid twice a year for leases of one or more years in length. If the lease period is shorter than one year the rent is paid at the expiration of the lease period.
-- Rent review --
The law does not provide for any rent indexation provisions. Therefore, rent is adjusted in accordance with contractual provisions.
All costs rechargeable to tenants
All costs may be recharged to the tenant
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-- Use --
The tenant shall use the premises according to their designated purpose and in accordance with the lease agreement. The tenant is responsible for any damage caused by the use of the premises, except that caused by normal wear and tear, regardless of whether the premises are used by the tenant himself, by the subtenant, or by another person entitled by the tenant.
-- Maintenance for heating, electricity, gas and water supplies, elevators, etc.--
Unless otherwise specified in the lease agreement, the tenant is responsible for minor repairs and maintenance work required for the day-to-day use of the premises.
The landlord shall carry out all the necessary repairs in order to allow the tenant to use the premises in accordance with their designation. The landlord must ensure the maintenance of the building and of all essential equipment (heating, electricity, gas and water supplies, elevators, etc.).
-- Improvements --
After termination of the lease agreement, the tenant must return the premises in their initial condition, unless the contract provides otherwise. If a tenant has carried out improvements, the landlord is entitled, at the end of the lease, either to keep the improvements in consideration for a payment equal to their value at the time the premises revert to the landlord or to require the tenant, at his expense, to restore the premises to their original condition.
-- Transfer of lease by the tenant --
Unless specified to the contrary in the lease agreement, transfer without the prior consent of the landlord is not permitted.
-- Sublease --
The law provides that the tenant can sublet the premises without the prior consent of the landlord if the lease agreement does not provide otherwise. If the landlord’s consent is required by the lease agreement, the law provides that this consent cannot be unreasonably withheld. In any case, the tenant guarantees the landlord that the subtenant will comply in full with the provisions of the lease agreement and will respect the designated use of the premises.
Source: montenegro365.com
