These are the latest published figures, covering the second quarter of this year, and they point only to a slight increase in the number of non-payers, or rather to de facto stagnation. That is the result of the relatively good economic situation of the population and quite possibly also of growing tenant education about how any difficulties with paying rent can be sensibly resolved. “Landlords and tenants alike are better and more diligent in meeting the obligations that the rental relationship places on both parties. Even lease agreements are now drawn up more carefully,” explains the president of the Rental Housing Association Jakub Vysocký. According to the association’s estimates, the share of non-payers among individual landlords may be significantly higher (by as much as several times), so it is institutional landlords who push the statistic down to around two per cent. They often have dozens or hundreds of flats in their portfolios and devote considerable effort to tailor-made scoring of prospective clients – the people who will live in the flats. The chance that a carefully vetted tenant will turn out to be someone who fails to meet their obligations is therefore relatively small. With individual rentals, on the other hand, especially if you have no prior experience, there is a fairly high risk that you will get your fingers burnt and end up in an unpleasant situation with non-paying tenants. The odds that when choosing a tenant yourself you will end up with a future non-payer are estimated at roughly one in ten
to one in twenty, depending on the type of property and the location.
Debts that are far from smallThe published statistics do not track minor debts and short-term lapses. The research methodology defines a debtor as someone who has failed to pay an amount of at least 1 000 Kč for more than 1 month past the due date. Nor does it include those who owed rent but preferred to move out
rather than pay the outstanding amount.
Christmas presents bought with the rent money? It may sound bizarre, but for plenty of families it is reality. Flat owners can only look on in disbelief Representatives of the association admit that in practice there are two “non-payer seasons”. While in the past rent arrears were often caused by broader economic developments, such as high inflation, unemployment or energy prices, today the reasons are somewhat more mundane. People use the money set aside for rent to pay for a summer holiday or presents for the children under the Christmas tree. And looking at the calendar and the approaching Advent season
, the latter is more than topical right now.
The help that sadly never cameEvicting non-payers has been somewhat easier since July of this year thanks to legislative changes – at least on paper. The law now recognises the so-called eviction order. However, if the tenant files an objection against such an order within the statutory 15-day period, the matter will have to be settled in court anyway. And that means a delay of at least several months
and demanding paperwork that many owners would rather avoid.
The level of tenant protection in the Czech Republic is high, which in cases of long-term non-payment of rent often leads to downright absurd situations Court proceedings against a problematic tenant should genuinely be the very last resort for resolving the situation. Flat owners try to avoid them at all costs, as they usually end in high legal costs
, damaged properties and ruined personal relationships.
Better prepared than surprisedA direct enforceability clause can save you a great deal of hassle. It is an agreement certified by a notary between the owner and the tenant, thanks to which a tenant who fails to pay rent can be evicted even without a court ruling. In any case, it is advisable to consult experts before signing a lease – people who work in the property market day in, day out and who will give you honest, accurate information about all the related administrative requirements and the risks involved. Would you like a partner at your side to guide you through the jungle of rentals and make sure you receive the agreed rent for your flat every month, whatever happens? That is exactly what our company FLAT SERVICE offers. Call +420 277 000 330 or write to sales@flatservice.cz and we will be happy to explain how our Partner and Garant services protect you from all kinds of trouble.
