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Renting

A safe rental contract: essential clauses for tenants and landlords

What a fair rental contract in Romania should contain, how to handle the deposit, handover, utilities and termination, and what to check before signing.

by Team Terra··6 min read
Contents · 9 sections
  1. Before the contract: check who you are signing with
  2. The essential clauses
  3. The handover report
  4. Registering the contract with ANAF
  5. Special situations
  6. What to do when a conflict arises
  7. Common mistakes
  8. How Empire Terra helps
  9. Frequently asked questions

A well written rental contract protects both sides. The tenant knows exactly what they pay, what they can do in the home and under what conditions they can leave. The landlord knows the home will be used with care and that rent payments can be enforced. Most conflicts between tenants and landlords start with vague clauses or with things agreed only verbally.

In this guide we go through the essential clauses, the documents that accompany the contract and the checks we recommend before signing. The information is general and does not replace legal advice for special situations.

Before the contract: check who you are signing with

For the tenant

  • The real owner. Ask to see the ownership deed or a recent land book extract. If the home is let by someone other than the owner, ask for the written authorisation.
  • The condition of the home. Visit the apartment in daylight, check the plumbing, windows, appliances and signs of damp.
  • The real costs. Ask what the service charges were in the winter months and which utilities are in the owner's name.

For the landlord

  • The tenant's identity. Ask for an identity document and discuss their occupation and how many people will actually live there.
  • Ability to pay. You can discuss income and previous rental experience while respecting data protection rules. Ask only for the information you need.

The essential clauses

1. Parties and property

The contract must clearly identify the landlord and the tenant, with their identity details, and the home, with the full address and ideally the cadastral number. State whether a storage room, parking space or other areas are included.

2. Term

Set the start date and the term, fixed or open ended. State whether and how the contract is extended at the end: automatically or only by an addendum.

3. Rent and payment

  • The amount of rent and the currency. If rent is set in euro, state which exchange rate applies when paying in lei, if relevant.
  • The due date and the account for payment. Bank transfer leaves a clear record for both sides.
  • Late payment penalties, if agreed.
  • The conditions under which rent can change during the contract.

4. Deposit

The deposit protects the landlord against damage or debts when the tenant leaves. The contract should state:

  • the amount of the deposit;
  • in which situations it can be withheld, fully or partly;
  • how soon after handover it is returned;
  • that the tenant cannot use it as the last month's rent, if the parties agree so.
Person signing a contract at a desk
Person signing a contract at a desk · Foto: @wischn / Unsplash

5. Utilities and service charges

State who pays each cost: the owners association service charge, electricity, gas, internet and possibly the repair fund. Usually the tenant pays for consumption, while costs tied to ownership, such as the repair fund or property tax, stay with the landlord. Record the meter readings at handover.

6. Repairs

The Romanian Civil Code splits the obligations: major repairs to the structure and main installations generally fall to the landlord, while minor repairs arising from normal use fall to the tenant. It is good to explain in the contract what these categories mean for that specific home and how the tenant reports a fault.

7. Use of the home

  • The number of people living there.
  • Rules on pets.
  • A ban on, or consent for, subletting.
  • Rules on changes: painting, holes in walls, replacing furniture.
  • The landlord's access to the home, with prior notice and at reasonable times.

8. Termination

Set out how the contract can end early: the notice period for each side, the situations in which it is terminated for non payment and what happens to the deposit. Clear termination clauses prevent the hardest conflicts.

9. Useful clauses that are often forgotten

  • How the parties communicate: the email address or phone number used for notices.
  • What happens to belongings the tenant leaves behind.
  • Who handles the boiler service and the mandatory gas installation checks.
  • The tenant's duty to report long absences, for the safety of the home.

The handover report

The contract should come with a handover report signed by both sides. It contains:

  • a list of furniture and appliances, with the condition of each;
  • the water, gas and electricity meter readings;
  • the number of keys handed over;
  • dated photos of every room, attached or kept by both sides.

At the end, the same document serves as the reference for returning the deposit. What is not recorded at move in is hard to prove at move out.

Registering the contract with ANAF

A landlord earning rental income must register the rental contract with ANAF, the Romanian tax authority, within the legal deadline and declare the income. For the landlord this is a tax obligation. For both sides it also brings an advantage: a contract registered with the tax authority can serve as an enforceable title for rent payments under the Civil Code. The tenant can ask for proof of registration.

Hands shaking over a contract after signing
Hands shaking over a contract after signing · Foto: @jakubzerdzicki / Unsplash

Special situations

Flatmates

When several people rent together, it is best for all of them to sign the contract. That way each has the same rights and is responsible for the rent. If only one person signs and the others pay that person, their relationship stays outside the contract with the landlord and can cause disagreements when someone leaves.

Pets

If the landlord accepts pets, write this explicitly, with their number and type. The parties can agree a larger deposit or professional cleaning at move out. For the tenant, a written agreement avoids later arguments.

The home is sold during the tenancy

If the landlord sells the home, the rental contract can continue with the new owner under the conditions set by law, especially when the contract was registered or is known to the buyer. To be safe, the tenant can ask for the situation to be discussed and mentioned in the contract.

What to do when a conflict arises

The first step is written communication. Send a clear message or email describing the problem and proposing a solution and a deadline. Keep all the evidence: payments, photos, messages. Often a calm conversation based on the contract and the handover report solves the situation. If not, you can turn to a mediator or to the courts. A clear contract makes these steps simpler and faster.

Common mistakes

  1. A verbal contract or a downloaded template that was not adapted. Every home has its own specifics.
  2. Paying rent in cash without a receipt. If there is a conflict, you have no proof.
  3. No handover report. Discussions about the deposit become subjective.
  4. Unclear termination clauses. Nobody knows how much notice is required.
  5. Utilities left undiscussed. Unpaid bills stay in the owner's name.

How Empire Terra helps

On Empire Terra you can find apartments for rent in the major cities, with clear information about rent, deposit and utilities. If you are a landlord, you can publish a listing or request a valuation of the right rent. If you are getting ready to move, the moving checklist helps you not forget anything, and for the capital you can also read our guide to Bucharest neighbourhoods for families.

Frequently asked questions

Is a written rental contract mandatory?

A written contract is strongly recommended for both sides and is required for registration with ANAF. Without a written document, rights and obligations are hard to prove.

Who registers the contract with ANAF?

The landlord earning rental income must register the contract and declare the income. The tenant can ask for a copy of the proof of registration.

When is the deposit returned?

Within the period set in the contract, after the home is handed back and its condition checked against the handover report. Any deductions must be justified.

The landlord's access should be agreed in the contract, usually with prior notice and at reasonable times. The rented home is used by the tenant, and entering without consent can cause legal problems.

Main image: @danrop / Unsplash

The information in this article is general and may be affected by legislative changes. For your specific situation, talk to a notary, a tax adviser or an Empire Terra advisor. Updated .