Residential Lease Agreement in Croatia - Rights and Obligations of Landlords and Tenants

09/11/2025

A residential lease agreement is one of the most common contracts in everyday life. Whether you are renting out an apartment or renting one as a tenant, your legal security depends on a well-drafted lease agreement – whether you will be able to protect your property, collect rent, and use the apartment peacefully.

In Croatia, residential leases are primarily governed by the Act on Lease of Apartments and the general rules of the Obligations Act. In this article we explain what a residential lease agreement should contain, what the main rights and obligations of landlords and tenants are, how the security deposit works, and what to pay particular attention to when concluding and terminating the lease.

Disclaimer: This text is for informational purposes only and does not constitute legal advice for any specific case. For a concrete agreement and situation, we recommend individual consultation with a lawyer.

1. What is a residential lease agreement and why must it be in writing?

Under a residential lease agreement, the landlord (owner of the apartment) undertakes to give the apartment to the tenant for use as a residence, while the tenant undertakes to pay the agreed rent and comply with the agreed rules for using the apartment.

Under applicable Croatian law, a residential lease agreement must be concluded in writing. A written contract:

clearly defines who the contracting parties are,
specifies which apartment is being leased,
defines the amount of rent and who pays the utilities,
specifies the duration of the lease and the notice periods.

Without a written lease, proving what has been agreed is much more difficult in a dispute, which increases the risk both for the landlord and for the tenant.

2. What must a residential lease agreement contain?

A properly drafted lease agreement should, at a minimum, contain the following elements:

2.1. Contracting parties

full name / company name of the landlord and tenant,
residential address / registered office,
personal ID or tax identification number (OIB),
if relevant, data on the spouse or other users of the apartment (e.g. children, partner).

Accurate identification is important for possible enforcement proceedings, tax reporting, and overall legal certainty of the parties.

2.2. Description of the apartment (subject of the lease)

The contract should clearly specify:

the address of the apartment (street, house number, floor, apartment number),
the size and number of rooms (e.g. one-bedroom, two-bedroom apartment),
any appurtenances: storage room, garage space, parking space, garden, attic,
whether the apartment is furnished or unfurnished.

It is advisable to draw up a handover report stating the meter readings (electricity, water, gas) and an inventory of furniture and appliances that are handed over for use.

2.3. Duration of the lease

A residential lease agreement can be concluded:

for a fixed term (e.g. 12 months from the date of signature),
for an indefinite term.

If the duration is not explicitly specified, the general presumption is that the lease is concluded for an indefinite term, which affects notice periods and the level of protection afforded to the tenant.

For fixed-term leases it is important to specify:

the exact starting and ending dates,
whether early termination is possible and under what conditions,
whether the lease will be automatically renewed if neither party states otherwise.

2.4. Rent and utilities

The lease should clearly specify:

the amount of monthly rent,
the due date for payment (e.g. by the 5th of each month for the current month),
the method of payment (bank transfer, cash),
who bears which utility costs (electricity, water, gas, heating, internet, municipal charges, building maintenance fee, etc.).

We recommend that the lease stipulates an obligation to provide proof of payment of utilities, especially in long-term leases, in order to avoid later disputes due to unpaid bills.

2.5. Security deposit

In practice, it is common for the landlord to request a security deposit in the amount of one or more monthly rents, in order to secure payment of any damage or outstanding claims.

The lease should precisely regulate:

the amount of the deposit,
how it is held (separate account or by the landlord),
in which situations the deposit may be used (damage to the apartment, unpaid rent, unpaid utilities),
the deadline and conditions for returning the deposit after the lease ends.

Clearly agreed conditions regarding the deposit often prevent conflicts when the tenant moves out.

3. Rights and obligations of the landlord

The landlord is the owner of the apartment who rents the property out. His main rights and obligations are:

3.1. Duty to deliver the apartment in a habitable condition

The landlord must deliver the apartment to the tenant in a condition suitable for the agreed purpose – clean, functional, with basic utilities working (electricity, water, heating as agreed).

If the apartment has defects that prevent normal use, the tenant may request that the defect be remedied, that the rent be reduced, and in certain situations may even terminate the lease.

3.2. Maintenance of the apartment

The landlord is responsible for major maintenance of the apartment and the building (roof, façade, installations that do not fall under minor day-to-day repairs), while minor repairs due to ordinary use are often allocated to the tenant – but this should be clearly regulated in the lease.

3.3. Right to rent and termination for non-payment

The landlord is entitled to timely payment of the agreed rent. In case of non-payment, after a reminder the landlord may, in accordance with the law and the agreement, terminate the lease and request that the tenant vacate the apartment.

It is therefore important that the lease clearly specifies:

what constitutes late payment,
how many consecutive unpaid rents entitle the landlord to terminate the lease,
the notice period.

3.4. Access to the apartment and inspection

The landlord has a legitimate interest in inspecting the condition of the apartment from time to time, but does not have the right to enter whenever he wishes. It is advisable to agree in the contract that:

inspections must be announced in advance (e.g. 24–48 hours),
there is a reasonable frequency of inspections (e.g. once every 3–6 months, except in emergencies),
there are clear rules on what to do in emergencies (burst pipe, fire, etc.).

4. Rights and obligations of the tenant

The tenant is the person who uses the apartment in exchange for paying rent. His main obligations are:

4.1. Payment of rent and utilities

The tenant is obliged to pay:

the monthly rent, and
utilities for which he is designated as payer under the lease.

Late payment may result in termination of the lease and the tenant being required to vacate the apartment, so it is important that the lease clearly regulates the deadlines and consequences of non-payment.

4.2. Use of the apartment with due care

The tenant must use the apartment with the care of a prudent person – essentially, take care of it as a good owner would, in accordance with the intended residential purpose.

This includes:

regular airing and basic maintenance,
notifying the landlord of defects,
not making alterations without the landlord’s consent (e.g. removing walls, major construction work).

4.3. Subletting and use by third parties

If the tenant wishes to sublet part or all of the apartment, this must be specifically regulated and in most cases requires the landlord’s explicit written consent.

Otherwise, unauthorized subletting may be a ground for termination of the lease.

4.4. Obligation to return the apartment in proper condition

When the lease ends, the tenant must:

vacate the apartment and hand it back to the landlord,
return the keys,
leave the apartment in a clean and orderly condition (taking into account normal wear and tear).

If damage has occurred beyond ordinary wear and tear, the landlord may set it off against the deposit and pursue any outstanding amount through court.

5. Termination of the residential lease

The termination of a lease depends on whether the lease was concluded for a fixed or indefinite term, and on specific statutory rules.

5.1. Lease for an indefinite term

For leases concluded for an indefinite term, it is common to agree on a notice period (e.g. 30 days or one month from the day the notice is received), depending on the interests of both parties.

As a rule:

the landlord may terminate the lease due to non-payment of rent, breach of contractual obligations, or other lawful reasons,
the tenant may terminate the lease without giving a specific reason, subject to the agreed notice period.

5.2. Lease for a fixed term

If the lease is concluded for a fixed term, the basic assumption is that it lasts until the agreed end date. Early termination is possible:

if this is explicitly agreed in the contract, and/or
if there are particularly justified reasons (serious breach of contract, impossibility of using the apartment, etc.), in accordance with the law.

This is why it is important to regulate in advance in the lease the conditions for early termination – for both parties.

6. Registration of the lease and tax aspects

Residential leases also have tax implications, especially for landlords who generate income from property. As a rule, in Croatia there is an obligation to report the lease or income to the Tax Administration, within the deadlines and in the manner prescribed by applicable tax regulations.

Since tax rules change over time, it is advisable to:

check the current obligations before entering into the lease,
clearly regulate who bears any additional costs (tax, surtax, etc.),
consult a lawyer or tax professional if needed.

7. Common mistakes in practice

In practice, similar mistakes often appear on both the landlord’s and the tenant’s side:

oral arrangements without a written lease,
copying templates from the internet without adapting them to the specific case,
unclear provisions on the duration of the lease and notice periods,
no handover report or photos of the condition of the apartment,
no clear allocation of who pays what and when (especially building maintenance fee, internet, shared costs),
poorly regulated deposit – deadline, conditions for using it and how it is returned.

All of this frequently leads to disputes, unpaid claims, damaged property and strained relationships.

8. When should you contact a lawyer?

Although it may seem simple at first glance, a residential lease agreement is usually concluded for a longer period and involves valuable property. A poorly drafted or unclear lease can be costly for both landlord and tenant.

It is particularly advisable to contact a lawyer when:

you are renting out an apartment as a long-term investment,
you rent out several apartments or business premises,
you need to adapt the lease to a specific situation (foreign nationals, students, short-term rental, etc.),
you have already had bad experiences with non-payment of rent or damage to the apartment,
a dispute arises regarding termination of the lease, the deposit or damage.

The Law Office of Andrej Bašović can:

draft or review your residential lease agreement,
adapt the contract to your specific circumstances,
advise you on your rights and obligations,
represent you in negotiations or in court.

FAQ – Frequently asked questions about residential leases

1. Must a residential lease agreement be in writing?

Yes. For residential leases, Croatian law requires written form precisely in order to protect both landlord and tenant. Oral agreements make it much harder to prove what was agreed and significantly increase the risk of a dispute.

2. What is a typical security deposit amount?

In practice, the security deposit is most often set at one to three monthly rents. The amount of the deposit and the conditions for its return depend on the parties’ agreement and should be clearly regulated in the lease.

3. Who pays the utilities – the landlord or the tenant?

It depends on what the parties agree. Usually the tenant pays those utilities that arise from use of the apartment (electricity, water, gas, internet), while different arrangements can be made for other costs such as building maintenance, municipal charges, etc.

4. Can I sublet the apartment without the landlord’s knowledge?

Generally no. Unless the lease explicitly permits it, subletting typically requires the landlord’s consent. Unauthorized subletting can be a reason for termination of the lease.

5. What is the usual notice period for terminating a residential lease?

The notice period depends on whether the lease is for a fixed or indefinite term and on the agreed terms. In practice, a notice period of around 30 days is common, but it may be longer or shorter, in line with the law and the parties’ agreement.

6. What happens if the tenant stops paying rent?

The landlord is entitled to warn the tenant and, if non-payment continues, to terminate the lease and request that the tenant vacate the apartment and pay the outstanding amounts (including rent, utilities and damage). In such situations it is advisable to seek legal assistance.

Conclusion – contact our law office

If you are considering entering into a residential lease, already rent out an apartment, or are involved in a dispute over rent, a deposit or termination of a lease, do not leave yourself without legal protection. For drafting or reviewing a residential lease agreement, legal advice on your rights and obligations, or representation in a dispute, feel free to contact us: >> Odvjetnički ured Bašović.

Latest posts

Lifetime Support Contract vs. Until-Death Support Contract – Differences, Risks and Legal Advice

14/01/2026

Prepayment of Rent in Croatia – Temporary Residence for Foreigners (2026 Guide)

04/01/2026

Immobilienkauf bei Versteigerungen in Kroatien: Rechtliche Hinweise

30/12/2025

Have more questions?

A representative from our office will get back to you as soon as possible.