The number of tenants failing to pay their rent increased by 10% to 2.4% in the second quarter of this year. However, this figure only applies to large landlords, with individual property owners potentially facing much higher rates of non-payment. A new amendment effective since July aims to simplify the eviction process for these problematic tenants.
David Bureš, director of property management company Bureš & Partners, reports that “Between 10-20% of people we screen are deemed unsuitable due to factors such as debt enforcement proceedings, insolvency, criminal prosecution, and other issues”. Among large landlords, the percentage of non-payers typically ranges between 2-3%, with slight increases during summer months and holiday seasons when some tenants prioritize gifts or vacations over rent payments.
Even with long-term non-payment, landlords cannot evict tenants without a court decision. The new legislation introduces an eviction order option to expedite this process. However, as Jiří Krejčí from the Rental Housing Association explains, “If tenants file an objection within fifteen days, everything reverts to the standard court procedure. This may help in certain cases, but it’s not a cure-all solution”.
Approximately one-fifth of the Czech population lives in rental housing, down from over a quarter a decade ago. The average household consists of 2.3 members and has been decreasing in size over time. This has led to an increase in living space per person, from around 30 square meters in 2005 to approximately 37 square meters last year. Housing expenses now approach 17% of net income.
Experts emphasize that a properly structured lease agreement is fundamental to preventing problems. Contracts should include contact information, property details, payment information, lease duration, and clearly define the rights and obligations of both parties. In case of serious issues, professionals recommend contacting the other party in writing – preferably by registered mail or through a data box.