What belongs in a residential lease?

The ten points not to sign without: rent, deposit, utilities, termination and the rest.

Rentkey team4 min read

By law, a residential lease has to be made in writing. Beyond that, a lot is up to what the parties agree, so it's worth writing everything down. A good lease isn't a sign of distrust, it's a shared vocabulary: you both know what to expect.

Which rules apply?

Residential leases between private individuals are governed by the lease rules of the Civil Code (Ptk.) and the Housing Act (Act LXXVIII of 1993, lakástörvény). Much of the Housing Act is about council-owned flats, and for private rentals you're free to agree on many things. That's exactly why the agreement needs to be in writing: where the lease is silent, the law's general rules decide, and they don't always say what you'd expect.

The ten points not to leave out

  1. The parties' details: name, date and place of birth, address.
  2. An exact description of the flat: address, land registry number (helyrajzi szám), floor area, the rooms and spaces that come with it.
  3. The rent: amount, due date, payment method, and how it can be increased.
  4. The deposit: amount, what it can be used for, when and how it's returned.
  5. Utilities: what the tenant pays, whose name the meters are in, how you settle up.
  6. Fixed or indefinite term, and the end date.
  7. Termination rules: notice periods, and when the lease can be ended with immediate effect.
  8. Who can live in the flat: address registration, pets, subletting.
  9. Maintenance and repairs: what's the tenant's job and what's the landlord's (who fixes what?).
  10. The handover: the handover report, meter readings and inventory are annexes to the lease.

The points in more detail

Rent and payment

Don't just write the amount, also the day it has to arrive by, and the bank account number. If the rent includes anything, like the building service charge or internet, name it. It's also worth setting out the consequences of late payment, so there are no surprises later. What to do if payment still doesn't arrive is covered in this article.

Deposit

Besides the amount, include what it can be used for and the deadline for returning it. The details are in our article on deposits.

Utilities

Utilities are one of the most common sources of disputes. Agree who reads the meters, when, and on what basis the tenant pays. More on this in our article on settling utilities.

Term and termination

With a fixed-term lease, as a rule neither party can end it with ordinary notice, unless the lease allows it. That's why leases often include a specific termination option, for example with 30 or 60 days' notice. With an indefinite-term lease, you should definitely write down the notice period.

Who can live in the flat?

Write down who's moving in. If the tenant later wants to live with a partner or friend, or take in a lodger, make it subject to the landlord's written consent. Pets are worth addressing by name too.

Maintenance

Whose job is the dripping tap, the water heater, the painting? If the lease doesn't say, the parties can easily see it differently. A simple split: small repairs from everyday use are the tenant's, major fixtures and bigger faults are the landlord's.

Notarial deed

Many landlords have the tenant's commitment to move out put into a notarial deed (közjegyzői okirat). It's not mandatory, but in a dispute it can speed up getting the flat back, because enforcement can be requested directly based on the deed, without a long lawsuit. The deed has a fee, which the parties split as they agree. Whether it's worth it for you is best discussed with a notary.

Annexes

Attach these to the lease:

  • the handover report with photos,
  • the meter readings,
  • the list of furnishings (inventory),
  • the receipt for the deposit.

These show, at the end of the tenancy, what state the tenant received the flat in.

FAQ

Is a verbal lease valid?

A residential lease has to be made in writing. With a verbal agreement it's hard to prove anything, so a written lease is in both parties' interest.

Do I need a lawyer for the lease?

It's not mandatory. A good template is enough for most cases, but in special situations, like commercial premises or unusual terms, it's worth having a lawyer review it.

Can it be signed electronically?

Yes, a certified electronic signature meets the written-form requirement. In Rentkey, you can sign the lease with DÁP, Hungary's digital citizenship app.

In short

Whatever isn't written down will end in a dispute. In Rentkey, the lease is built from a template, and the annexes come straight from the handover.

If you rent out by the room, watch out for these too.

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