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Landlord glossary
Landlord glossary
Deposit, service charges or sublease. We explain what the terms mean and what to watch out for when renting out or buying a flat. Each entry includes practical examples, recommendations and links to more detailed information.
Six topics
From the lease to the tax return
60 terms
Lease and contracts
From signing the lease and paying the deposit to extending or ending the tenancy.
13 termsAgreement to terminate a leaseWith a termination agreement, you and your tenant jointly decide on the date the lease ends.Contractual penalty in a lease (smluvní pokuta)A contractual penalty lets you agree in advance what the other party must pay or otherwise do if they breach a specific obligation.Eviction order (rozkaz k vyklizení)An eviction order (rozkaz k vyklizení) is a court decision available in certain cases where a former tenant keeps using a flat or house after the tenancy has ended.Fixed-term and indefinite-term leases (doba určitá a neurčitá)With a fixed-term lease, you know in advance when it is due to end.Inflation clause (indexation)An inflation clause in a lease sets out how the rent may change in line with inflation.Lease agreementA lease agreement sets out the terms on which the tenant uses the flat and pays you rent.Lease extensionWith a lease extension, the tenancy continues beyond the originally agreed end date.Notice of termination (výpověď z nájmu)Notice of termination allows one party to end a lease without the other's consent, but it must meet the statutory conditions.Notice periodThe notice period determines how long a tenancy continues after notice has been given.Pre-action letter (předžalobní výzva)A pre-action letter gives the other party a chance to fulfil their obligation before you go to court.Short-term rental (Airbnb)A short-term rental usually means letting a flat temporarily, often to tourists through a booking platform.Subletting (podnájem)A sublet arises when a tenant passes on the rented flat, or part of it, to someone else.Tenant's permanent residence (trvalý pobyt)For a Czech citizen, permanent residence is simply the address recorded in the population register.
Payments and billing
Rent, services and deadlines. What is paid, what is settled annually and how to read the amounts.
13 termsBilling period (zúčtovací období)The billing period is the period over which the actual cost of services is compared with the advance payments made.Certificate of no debt (potvrzení o bezdlužnosti)A certificate of no debt states that, as of a specific date and within a stated scope, you have no record of any debt owed by the person concerned.Late payment interest (úrok z prodlení)Late payment interest is an amount on top of a debt that you can claim for a late payment, provided the statutory conditions are met.Non-paying tenantA non-paying tenant is a tenant who has failed to pay rent or another housing payment that has fallen due.Payment schedule (předpis plateb)A payment schedule shows how much you need to pay for a given period, by when and to which account.Persons counted for service charge allocation (osoby rozhodné pro rozúčtování)Some service costs are split according to the number of people living in a flat.Rent (nájemné)Rent is the price paid for the use of a flat.Rent due date (splatnost nájemného)The due date sets the day by which rent must be paid.Rent increasesRent can be changed by agreement, under an agreed inflation clause or through the statutory procedure.Rent reductionA rent reduction can be agreed between the parties or arise as a statutory right when a defect limits the tenant's use of the flat.Security deposit (jistota / kauce)A security deposit, referred to in Czech law as “jistota”, is money paid up front to cover any debts or damage arising from the tenancy.Service charge advances (zálohy na služby)Service charge advances are regular payments for things like water, heating or cleaning of the building.Service charge statement (vyúčtování služeb)A service charge statement compares the actual costs with the advance payments the tenant made for the period in question.
The flat and its upkeep
Handover, furnishings, repairs and utilities. Terms that help in everyday living and in an unexpected fault.
15 termsApartment layout (dispozice): 1+kk, 2+1 and moreThe layout tells you how many rooms a flat has and how the kitchen is arranged.Assistance serviceAn assistance service helps when a breakdown or other emergency catches you off guard at home.EAN and EIC codesEAN and EIC are codes that identify an energy supply point (odběrné místo).Emergency in a flatAn emergency is a sudden problem that puts people at risk or causes property damage to escalate quickly.Flat handoverWhen a flat is handed over, the other party receives the keys and gains actual access to the property.Floor area of a flatFloor area tells you how many square metres a flat has.Handover protocol (předávací protokol)A handover protocol records when, and in what condition, you handed over or took over a flat.Home contents and liability insuranceHome contents insurance covers selected risks to furnishings and other belongings in the home, such as fire, water damage or theft.Inventory listAn inventory list (soupis vybavení) records the items you hand over with the flat, including their quantity, description and condition.Minor repairs and routine maintenanceRoutine maintenance and minor repairs, as defined by law, are the tenant’s responsibility – both to arrange and to pay for.Normal wear and tearNormal wear and tear means the marks that everyday, proper use leaves on a flat.PENB: Energy Performance Certificate (průkaz energetické náročnosti budovy)PENB is the Czech energy performance certificate for a building.Property inspectionDuring a property inspection, you or your representative check the condition of the flat and whether any repairs are needed.Safety inspection (revize)A safety inspection (revize) is a professional check of the safety of equipment or an installation, resulting in an inspection report.Transfer of utilities (přepis energií)Transferring utilities changes the customer who holds the electricity or gas contract for a given supply point.
Taxes and accounting records
Rental income tax, flat-rate expenses or depreciation. What they mean and which documents to prepare.
5 terms30% flat-rate expense deduction (výdajový paušál)For rental income under § 9, the flat-rate expense deduction lets you deduct 30% of your income without documenting individual expenses, up to a maximum of 600,000 Kč a year.Income tax on rental income (§ 9)Income from renting out a private flat is usually taxed under § 9 of the Income Tax Act.Property depreciationTax depreciation lets you gradually claim the value of a rental property as an expense.Property tax (daň z nemovitých věcí)Property tax is paid every year by the owner of land, a building or a unit.Technical improvement (technické zhodnocení)Technical improvement is a tax term for alterations that change the purpose or technical parameters of an asset, or expand its equipment or usability.
Investing and buying
Price, yield, mortgage and the transfer of a flat. What to check before you buy a property.
10 termsCooperative flat (družstevní byt)A cooperative flat is usually owned by a housing cooperative, and the member who lives in it uses it as a tenant.Land Registry (katastr nemovitostí)The Land Registry tells you who owns a property and which specified rights are registered against it.LTV (loan-to-value) on a mortgageLTV expresses how much of the value of a mortgaged property is financed by the loan.Occupancy rateOccupancy shows what share of a given period a flat is let.Off-market flatsAn off-market flat is offered to selected buyers without a public listing.Purchase price escrow (úschova kupní ceny)With purchase price escrow, the buyer deposits the money with an agreed escrow provider.Rent Price Map of the Czech Ministry of Finance (Cenová mapa nájemného MF ČR)The rent price map shows how much a model flat in a given area could be let for.Rental cash flowCash flow shows how much money a rental actually brings in and how much goes out.Rental yieldRental yield compares rental income with the value of the investment, usually on an annual basis.Title deed (list vlastnictví)A title deed, or LV (list vlastnictví), is an extract from the Land Registry (katastr nemovitostí).
Management and services
Who looks after the flat and who after the building. How regular management differs from guaranteed rent.
4 termsGuaranteed rentWith guaranteed rent, the provider contractually takes on some of the risk that your rental income dries up.Property managementWith property management, you entrust someone to look after your flat, house or rental on your behalf.Repair fund (fond oprav)“Repair fund” (fond oprav) is the everyday name for the money owners pay towards the management and repair of their building.SVJ – association of unit owners (společenství vlastníků jednotek)An association of unit owners, or SVJ, is a legal entity that looks after the management of a building and its land.
You do not have to know every term. Just who to turn to.
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