Rental agreement

The rental contract is two-sided and non-refundable. The parties to the rental contract are the Lessor and the Tenant. They may be natural or legal persons.

With a rental agreement owner-landlord is obliged to provide the tenant with his own property for temporary use, for which he pays a certain price. This agreement only applies to the parties that have concluded the agreement.

Both rights and obligations simultaneously and clearly defined and specified in the contract in accordance with the Law on Obligations and Contracts (CPA, Article 228-239) and the Law on Hire Relations are simultaneously emerging. The basic principle for the conclusion of a lease agreement is contractual freedom (Article 9 of the LCP).

It is important to know that the essential and necessary components of the lease are the determination of the subject of the contract and the consideration to be paid for the use of the property. If they are not agreed, there is no contract.

The term is not a prerequisite for the conclusion of a Rental Agreement. He is negotiating between the two countries. If it is not explicitly agreed and fixed, the contract is considered to be indefinite. The term is freely determined by the parties but can not be longer than 10 years. It should be noted that any rental agreement of more than one year at the request of the parties may be entered in the Notary (Article 112 (e) of the Property Act). This is intended to protect the tenant when selling the property.


  • To provide the Lessee with the property only for temporary use (Article 228 of the Obligations and Contracts Act). The term must be precisely and clearly stated in the contract;
  • For the use of the property, the Lessor has to receive from the Lessee a monthly (or periodic) amount. The rent should be formed on a market based on demand and supply and according to the real property of the property. The term for payment of the rent shall also be entered. For the amount received, the Lessor is obliged to issue a receipt. The contract may reflect the possibility of changing the rent after a certain period and on what basis (inflation according to the National Statistical Institute data, change of the minimum wage, change of the rental market, etc.). The contract also includes the term for payment of the rent;
  • To hand over the property in a condition corresponding to the use for which it is employed; It is advisable to draft an acceptance protocol with an inventory of the property status signed by both parties as an integral part of the contract. This will prevent a possible future dispute over the condition in which the property should be returned after the conclusion of the contract;
  • Upon request, a clause may be included in the contract whereby the Lessee undertakes not to distribute the property to other natural or legal persons;
  • To ensure the peaceful enjoyment of the property by the Lessee and to protect it from intrusion of third parties. For example: The Landlord decides to undertake a major repair of the leased property, which will prevent the Lessee from using it. Or: neighbors unreasonably hinder the tenant to use the property safely. There is no legal framework in this respect. It is therefore advisable to include in the contract special clauses;
  • The Lessor is not responsible for the deficiencies that the Lessee knew or could have known. For example: visible leakage or visibly cracked wall, etc .;
  • The Lessor is not obliged to accept luxury improvements of the property made by the Lessee. However, if these improvements are useful and necessary, the Lessor owes the costs.


  • To ask for the property to be in the state agreed before signing the contract. If this is not the case, make a claim to the Lessor to adjust the agreed rental price, indemnify or terminate the contract;
  • Да договори с Наемодателя отстраняване на съществуващи недостатъци на имота за сметка на дължимия наем за определен срок (смяна на подова настилка, освежаване чрез боядисване, и др.);
  • To negotiate with the Lessor the removal of existing defects of the property at the expense of the rent due for a fixed period (change of flooring, refreshment by painting, etc.);
  • To pay in time (exactly fixed in the contract) the rent and the expenses related to the use of the property, to pay the consumable expenses: water, heat and electricity, telephone, lift, cleaner, etc. This type of costs can be included in the rent or paid separately. In both cases, they are owed to the Lessee unless the parties explicitly agree otherwise in the contract;
  • If necessary, the Lessee may make changes to the interior of the property, provided that the Lessor agrees;
    Communicate immediately to the Lessor for damages and encroachments on the leased property;
  • To implement the regulations for the order and management of the condominium if the property is a condominium property. Then the tenant is bound to the costs of using the common parts of the building – staircase lighting, elevator, roof repair, common doors, etc. These amounts are collected by the House and, if they are not paid, he can turn to the court for issuing a writ of execution. At the request of the management, the tenant can be removed from the rented premises (Article 235 of the CPA and Article 15 of the Rules for the management, order and supervision of the condominium);
  • To return the property to the state in which it was handed over. Compensation for damages caused during use, unless it proves that they are due to a reason for which he is not responsible. Until proved to the contrary, it is assumed that the property was handed over to the Landlord in good condition.


Under an open-ended contract, either party may request termination of the contractual relationship with a one-month notice.

Under a fixed-term contract, the lease arrangements have effect until the expiration date. If after the term the use of the property continues with the knowledge and without opposition of the Lessor, the contract shall be considered as extended for an indefinite period. If the sequel is without consent and the Lessor obviously opposes, the Lessee owes compensation and fulfillment of the obligations arising from termination of the rental contract.

The contract may be terminated prematurely by either party if the other party fails to comply with its terms. A penalty clause may be included in the contract in the event of a unilateral, premature termination of the contract.

Upon termination of the contractual relationship, the tenant must deliver the property to the owner, not abandon it. If he does so, he is responsible for damages that may arise from a possible nonprofit period.

These statements are in accordance with our legislation. The lease may also contain arrangements in a different sense from the law.

No matter how perfect the rental contract is, there are risks in the mutual relationship between the tenant and the landlord. They are more about the Lessor. He places a tenant in his property and if he is in bad faith, he risks for a long time not to be able to dispose of the property, not to receive the rent for him, and so on. There is already an exit for such cases. In 1999, the legislator introduced in the civil process an institute for speedy proceedings for dealing with certain types of cases. These include claims arising from non-compliance with the terms of the lease.

Important! Rapid court proceedings can only be applied to rental contracts that are entered.


  • No written or notary form of the lease is required. It may also be oral. For greater security and protection of the parties, the written form is advisable, as it has evidential value. It is even better for the contract to be entered in the Notary.
  • The tax on the rented flat is paid by the Owner (the Lessor) and not by the Lessee.


According to Art. 229 of the Obligations and Contracts Act (APA), the lease term can not be longer than 10 years.

Although the legislation allows for a longer term, a long-term contract is not recommended at this stage of our economic development. However, if it is indispensable, it is good for the Lessor and the Lessee to be certified by the notary and recorded in the books of the Notary. This protects the property from sale and preserves the relationship between the Lessor and the Lessee.


If the contract is concluded for more than 10 years and is not entered in the Notary, it is valid but has the force for 10 years.



Texts are from the 100 issue “100 Questions, 100 Real Estate Answers”, supplemented by the book “200 Questions, 200 Real Estate Responses”. Prof. Maria Gajova, Ph.D. Editor: Vasil Stoyanov; Consultants: Daniela Krasteva notary, Eng. Tsvetka Bostandjieva, Liliana Hristova; Publishing house – Plovdiv