Renting a flat to foreigners is a perfectly common thing these days. Thanks to the many tenants from Slovakia, we have long been used to such situations. But what if this is your first time renting to foreigners and you're not sure how to go about it? In the following article we offer you 7 essential tips on what not to forget, if you are renting your flat to tenants from abroad.
1. Foreigner or local?
Act No. 326/1999 Coll., on the Residence of Foreign Nationals in the Czech Republic, clearly defines a foreigner as anyone who does not hold Czech citizenship. To be able to apply for it, a foreigner (this applies to Slovak citizens as well) must have held permanent residence in the Czech Republic for at least 3 years (for EU citizens) or 5 years (for non-EU citizens).
2. The landlord's obligations
If you are renting your flat to a foreigner, make sure you meet all the legal requirements. One of them is the reporting obligation. By law, you must report the tenancy of a tenant from abroad to the Foreign Police within 3 working days of accommodating them. Many landlords overlook the fact that this law applies to citizens of the Slovak Republic as well. We definitely recommend not underestimating the situation, because failing to comply with any of these steps means you risk a fine of up to 50 000 Kč. If asked, you must also allow the Foreign Police to enter the flat, and you have to keep a so-called house register, which you submit for inspection upon request. In addition to the foreigner's details, it also includes the registration form signed by the tenant, i.e. the document confirming that you registered the foreigner correctly. These days everything can be done online. The law also requires you to keep these documents for 6 years (from the last entry in the register). You are also obliged to issue the foreigner a confirmation of accommodation upon request. The form (confirmation of accommodation) must contain the following:
- the foreigner's first name and surname
- the address of the flat
- the length of the tenancy
The house register must contain:
- the foreigner's first name and surname
- date of birth
- citizenship
- document number (e.g. passport)
- the exact start and end dates of the lease agreement
3. A solid contract is the foundation
A well-prepared contract is something you should have no matter who you rent to. However, when renting to foreigners, it pays to be extra careful when drawing the contract up. Since foreigners usually do not have a Czech birth number, they must be identified in the contract in another way. We therefore recommend stating:
- full name
- date of birth
- travel document number
- phone number, email (mind the GDPR annex)
If a foreigner (from outside the EU) holds a visa for longer than 90 days, they can even apply for the assignment of a birth number. Since you are not entering into a contract with a Czech citizen, bear in mind that from a legal point of view this is a different type of contract – a so-called “contract with an international element”. If you are not entirely sure about the tenant, we recommend concluding the contract for a shorter fixed term with the option of extension. And don't forget to require a security deposit. At Flat Service we draw up contracts with foreigners in both Czech and English, so that they understand everything correctly. However, the Czech version of the contract always prevails should any dispute need to be resolved.
4. Screening the tenant
With Czech (and Slovak) citizens, the advantage is that the landlord or the management company can go through all the available registers and check whether the prospective applicant is wanted by the Czech Police, has any debt enforcement proceedings against them or appears in the insolvency register. With foreigners, everything is more complicated. At Flat Service, we make sure our clients always get respectable and reliable tenants. From tenants coming from abroad we require references from their previous landlord and an employment contract as proof of a stable income.
5. Hidden potential
Landlords who open their doors to foreigners and are not afraid to rent to them have a great advantage over the competition. This is an easy way to expand your pool of potential, respectable tenants. Many solvent tenants from abroad hold good jobs in international corporations operating in the Czech Republic, and their accommodation is often paid for by their employer or an embassy. If your property is exceptional, there is a high probability that such a tenant will be willing to pay a higher rent than an “ordinary” Czech citizen.
6. Ending the tenancy
Unlike in point 2, when the lease agreement ends and the tenant moves out, the foreigner is obliged to deregister themselves and notify the Foreign Police. This obligation applies even if the contract simply “expires”, and if the foreigner has not deregistered, you have to file the notification yourself so that the Foreign Police know they will no longer be staying at the address. And in the event of death, it is unfortunately your sad duty to report the tenant's death to the Foreign Police.
7. Leave it to us
Don't want to deal with registration and deregistration? Don't speak a foreign language, but want to rent your flat to a reliable tenant and don't mind them being a foreigner? Get in touch with us. At Flat Service, we'll take care of renting out your flat. If you are considering entrusting your flat to a professional management agency, take advantage of our free consultation. Before you decide to accept any offer, contact us completely free of charge and with no obligation. Call us on +420 277 000 330 or write to info@flatservice.cz and arrange a personal meeting. During the meeting we will answer all your questions and within two days you will receive a calculation of exactly how much the property management will cost you and what your real rental income will be.
