Hungarian Rental Agreements - The 40 Most Common Questions

Before You Sign on the Dotted Line: A Renter's Guide to Scrutinizing Your Lease

Before you sign a rental agreement, whether as a landlord or a tenant, pay special attention to the following key points:

• Landlord's Identity and Authorization: Make sure you are contracting with the actual owner or a person legally authorized to sign the agreement. Ask to see the title deed or a letter of authorization.
• Exact Address and Description of the Property: The property's address, size, number of rooms, and included amenities should be clearly stated, along with which parts are included in the lease (e.g., storage unit, parking space).
• Rent, Security Deposit, and Payment Terms: The monthly rent, the amount of the security deposit, and the payment method and deadline must be precisely specified. The contract should state what the deposit covers and when and under what conditions it will be returned.
• Responsibility for Utilities and Common Costs: Who pays for what? Clarify exactly which utility bills and common costs (condominium fees) are the responsibility of the tenant and which are the landlord's.
• Contract Duration and Termination: Is the contract for a fixed or indefinite term? What is the notice period, under what conditions can it be terminated, and are there provisions for extraordinary termination?
• Rules of Use, Subletting, Pets, and Smoking: Are pets allowed? Can you smoke, take in a sub-tenant, or modify or paint the apartment? These should all be clarified.
• Handover Protocol: Will a handover protocol be created (recording the number of keys, meter readings, and the condition of the apartment/fixtures)? This provides security for both parties upon return of the property.
• Division of Repairs and Maintenance: Who pays for repairs and maintenance costs? Record what is considered a tenant's responsibility and what is the landlord's.
• Possibility of Address Registration: Does the landlord permit official address registration at the property?
• Notarized Deed vs. Standard Contract: Is it necessary to go to a notary (e.g., for an eviction declaration), and who bears the cost?
• Rules for Rent Increases: Is there a scheduled or conditional rent increase clause in the contract?
• Landlord's Right of Entry and Inspection: How, when, and with what authorization can the landlord inspect the apartment?
• Penalty Clauses, Liquidated Damages, and Other Hidden Costs: Are there any extra penalties or fees you must pay for violating certain rules?
• Debts of Previous Tenants, Outstanding Issues: Ensure all utility meters are clear of debt and there are no hidden defects.
• Permission for Alterations, Modifications, and Renovations: What can you do without the landlord's permission, and what requires separate written consent?

The Most Common Questions from Tenants

I have gathered the questions that tenants have asked me over the years before signing a Budapest rental agreement:

How much is the security deposit, and when do I get it back?

The security deposit is typically equivalent to 1–3 months' rent, but this can depend on the parties' agreement, the value of the property, and local rental market customs. The purpose of the deposit is to provide the landlord with security against potential damages, unpaid rent, or other costs arising from a breach of contract.

The landlord must return the deposit to the tenant promptly after the tenancy ends, provided there is no damage, unpaid utility bills, or rent arrears. This usually happens upon returning the keys to the property, but at most within a few business days to a week or two (the exact deadline may be specified in the contract).

Important:

• If the tenant has caused damage, has arrears, or leaves behind debt, the landlord can legally deduct these amounts from the security deposit.
• The return of the deposit is usually conditional on returning the property in its original, clean, and undamaged condition and settling all debts.

Are utilities (rezsi) included in the rent?

Utilities are generally not included in the rent unless the parties explicitly agree otherwise in the contract. In most rental agreements, the rent only covers the use of the property itself, while utility costs are paid separately, usually based on consumption. Always ask the landlord directly about the average monthly cost of common charges, heating, water, electricity, and any other fees (e.g., garbage collection).

How long is the term of a rental agreement? Can it be terminated early?

The duration of a rental agreement can be flexibly determined by the mutual agreement of the landlord and tenant. The most common are fixed-term contracts (e.g., 1 year), but they can also be for an indefinite period with no set expiration date.

Termination options:

• Fixed-term contract: Early termination is usually only possible if the contract explicitly allows it (e.g., specific reasons for termination, mutual agreement). Otherwise, both the tenant and landlord may be required to pay a penalty or proportional costs if they wish to terminate the relationship prematurely.
• Indefinite-term contract: An indefinite-term contract can be terminated by either party by the 15th of the month, with the termination taking effect at the end of the following month.
• Extraordinary termination: For both types of contracts, extraordinary termination is possible in cases of serious breach of contract (e.g., non-payment, causing damage) that makes it unreasonable for either party to continue the agreement.

In what condition must I return the apartment? 

The apartment must be returned in a clean, undamaged condition suitable for its intended use, as specified in the rental agreement. This means returning it as you received it, taking into account the minor, unavoidable wear and tear from normal, everyday use (e.g., scuffs, slight paint fading). It is a fundamental duty of every tenant not to cause intentional or grossly negligent damage to the property.

What to pay attention to when returning the apartment:

• The apartment should be cleaned, empty, and all trash removed.
• Any extra repairs (e.g., fixing scuffs on walls, holes from shelves, marks left after moving furniture) should be fixed or discussed with the landlord.
• All keys, remote controls, and access cards you received must be returned.
• The fixtures and furniture listed in the rental agreement must also be present, undamaged, and clean (if they are part of the agreement).
• In case of fresh damage or significant issues (e.g., a broken window, a large wall defect, a stolen item), the landlord may deduct from the security deposit or separately claim the repair costs.

Can I bring a pet? 

Keeping a pet in the rental property always depends on the rental agreement and the landlord's consent.

Important to know:

• The landlord may ask for an additional security deposit or a higher guarantee because of the pet.
• You are always responsible for repairing any damage caused by your pet.
• Bringing a pet without permission could lead to the termination of your contract or the forfeiture of part of your security deposit.

Is smoking allowed in the apartment?

Whether smoking is permitted in the apartment depends on the rental agreement and the landlord's decision. Therefore, always check the relevant clauses in your contract. Never start smoking in the apartment without discussing it with the landlord and having it written into the agreement. This provides security for both parties. If the contract prohibits it or is unclear, it's best not to smoke indoors.

Important to know:

• For damages caused by smoking (smoke smell, stains, burnt surfaces), the landlord can claim compensation or make a deduction from the security deposit.
• Many landlords do not permit smoking inside the apartment, only on a balcony, loggia, or outside the building.

Can I register my address at the property?

Yes, in most cases, you can register your address at the rental property—either as a temporary or permanent address—but this is always subject to the landlord's consent. The landlord must sign the address registration form (címbejelentő lap). This is often part of the rental agreement, but if not, you can ask the landlord separately to sign the necessary form. It can be important for obtaining an address card, official administrative matters, school or kindergarten enrollment, and accessing healthcare services.

Who pays for repairs (e.g., a broken boiler, burst pipe)?

The division of repair costs in an apartment is primarily determined by the rules of the Civil Code and the content of the rental agreement:

General rule:

• Landlord's duty: To maintain the property in a condition suitable for its intended use. This means the landlord is responsible for major repairs and maintenance—such as a boiler failure, a burst pipe, a heating system malfunction, or other significant structural defects—and must bear the costs.
• Tenant's responsibility: The cost of everyday, minor issues and wear and tear (e.g., changing a lightbulb, clearing a drain, replacing small fixtures) falls on the tenant. However, if a major malfunction or damage occurs due to the tenant's fault (e.g., negligence, improper use), the repair cost is also their responsibility.

It is advisable to specify in the rental agreement which repairs and up to what value are covered by the landlord and which by the tenant.

Can I renovate or rearrange the apartment?

Renovating or rearranging the apartment is generally NOT allowed without the landlord's consent. This means:

• Minor rearranging and placing furniture (e.g., shelves, mobile furniture, changing curtains) is usually permissible as long as it does not involve permanent or damaging alterations to the property.
• Major, permanent changes (painting, moving walls, changing flooring, moving built-in furniture, replacing fixtures) can only be done with the landlord's prior written permission.
• For renovations (e.g., remodeling the kitchen or bathroom, replacing flooring), you must always coordinate with the landlord. In such cases, it is important to agree on who bears the costs and who will own the installed items at the end of the lease.
• In the case of unauthorized work, the landlord can demand compensation and expect the tenant to restore the property to its original condition.

Always ask for written permission for any renovation or alteration affecting the structure or fixtures of the apartment, and clarify in advance what will happen at the end of the tenancy.

What happens if the landlord wants to sell the apartment during my tenancy?

The sale of a Hungarian property itself does not affect the validity of the rental agreement. The new owner "steps into" the landlord's legal position, meaning they must respect the terms of the existing rental agreement until it expires or is terminated. For indefinite-term rental agreements, the new owner can also terminate the contract with the notice period specified in the agreement (e.g., 30 days).

What happens if I can't pay the rent on time?

If you cannot pay the rent on time, there can be several consequences, depending on the rental agreement and the landlord's reaction:

• Late payment interest: The contract often states that the landlord is entitled to charge late payment interest. The rate is regulated by the contract, but if not specified, the general rules of the Civil Code apply.
• Formal notice: The landlord will usually first issue a formal notice to settle the debt, providing a grace period for payment.
• Termination: If the debt persists, the landlord can terminate the contract, especially for an indefinite-term lease, based on the Civil Code. For fixed-term contracts, extraordinary termination is also possible for late payment, especially if it lasts for several months or is repeated.
• Legal proceedings, eviction: In cases of prolonged non-payment, the landlord can initiate a civil lawsuit to recover the debt and ultimately, after a court decision, initiate eviction.

Can I pay the rent in cash?

Yes, rent can be paid in cash, but the rules for this should definitely be recorded in the rental agreement. Hungarian law does not prohibit cash payments (in fact, it's a constitutional right!), but for the protection of both parties, it is highly recommended to give and request a written receipt for each payment (date, amount, signature).

Is a notarized deed necessary for the contract? Who pays for it?

Under Hungarian law, most rental agreements are concluded in writing as a private document—this is completely legal and sufficient. Most often, only the eviction declaration (kiköltözési nyilatkozat) is notarized. Its advantage is that it has special evidentiary power and allows the landlord to initiate enforcement directly (e.g., request eviction by a court bailiff) without a lawsuit if the tenant fails to comply (e.g., does not pay or move out after termination).

What kind of background check can the landlord perform (e.g., proof of employment)?

Before signing the rental agreement, the landlord may ask for proof of the tenant's solvency and reliability to ensure that the tenant can meet their payment obligations regularly and is unlikely to cause problems. However, this is not a widespread practice in Hungary.

When do I get the keys to the apartment?

You will usually receive the keys to the apartment once you have signed the rental agreement, paid the security deposit and the first installment of rent (if required by the contract), and fulfilled all contractual conditions (e.g., completed the handover protocol).

Is the apartment always insured, and do I need to get my own insurance?

nsurance on the apartment is not automatic; not every rented apartment has a valid insurance policy. Whether there is home insurance on the property depends on whether the owner/landlord has taken one out. If you want your own belongings (furniture, laptop, clothing, etc.) to be insured, it is advisable to take out a separate tenant's insurance policy.

Can the landlord enter the apartment without prior notice?

The landlord cannot enter the apartment without prior notice and the tenant's consent, except in an extraordinary, urgent emergency that justifies entry (e.g., a burst pipe, fire, or life-threatening situation requiring immediate intervention).

General rules:

• After the apartment is rented, the tenant takes possession of the property, and from then on, entry is only possible with their knowledge and consent.
• The landlord is entitled to inspect the apartment at certain intervals (e.g., once or twice a year, or as specified in the rental agreement), but they must arrange and announce this with the tenant in advance.
• Even if the contract does not provide for this, general rules of courtesy and law must be followed: all inspections, repairs, and viewings must be announced in advance, and an appointment must be scheduled.

The Most Common Questions from Hungarian Landlords

Below are the most frequently asked questions by landlords and their answers.

Is a fixed-term or indefinite-term rental agreement safer for me?

As a landlord, a fixed-term rental agreement is generally the safer choice, especially if you want predictability, stable income, and the ability to plan.

Why is a fixed-term contract safer?

• Clear end date: A fixed-term contract specifies in advance when the lease will end, so the tenant knows how long they can stay, and the landlord can plan accordingly.
• Termination restricted: Neither party can terminate this contract early "just because," unless the contract allows for it or in cases of extraordinary breach (e.g., persistent non-payment, serious damage).
• Stable income: If the tenant commits to staying for, say, 1 year, you can count on a fixed income and not worry about a sudden move-out.

How much security deposit can I legally ask for?

There is no explicit legal limit, but according to Section 6:343 of the Civil Code, if the security deposit exceeds three times the monthly rent, the tenant can ask a court to reduce the amount.

How do I choose a reliable tenant?

The most important characteristics of a reliable tenant are a stable financial background, a transparent history, positive references, clear communication, and acceptance of the rules. Ask why they are moving, where they lived before, and if they had any conflicts with previous landlords. An open conversation can quickly reveal how honest and cooperative the applicant is. Someone who is difficult to communicate with or is not punctual from the beginning is unlikely to be a reliable partner later. Much can be revealed even during the email exchange and scheduling of appointments. Explain the most important rules (pets, smoking, address registration, subletting, etc.) at the first meeting, so it becomes clear before the contract is signed if you disagree on anything.

How can a non-paying tenant be legally evicted?

The process of legal eviction, step by step:

1. Written notice and termination: First, warn the tenant in writing about the arrears and give a grace period. If they do not comply, terminate the contract in writing according to its terms. Be precise and respect the notice period as prescribed by the Civil Code or the contract.
2. Ensure a peaceful move-out: After termination, allow sufficient time for the tenant to move out and offer an opportunity to settle the debt. Many disputes can be avoided with a cooperative attitude.
3. Legal proceedings (lawsuit for eviction): If the tenant refuses to move out voluntarily, you must file a "lawsuit for eviction" with the court. Here, you need to prove the termination of the contract, the lawfulness of the termination, and the illegality of their continued occupancy.
4. Advantage of a notarized deed: If the rental agreement was notarized and the tenant agreed to move out upon termination, you do not need to go to court; direct enforcement can be requested based on the notarized deed. This significantly speeds up the eviction process.
5. Enforcement: With a valid court judgment (or an enforcement clause issued based on a notarized deed), the competent court bailiff will begin the actual eviction. Only a bailiff is authorized to carry out a forced eviction; never attempt a self-enforced lockout. Of course, the eviction moratorium should also be taken into account.

What are my tax obligations after renting out the property?

You must pay a 15% personal income tax on the income derived from renting. How is the income calculated? There are two ways to account for costs:

• Itemized expense accounting: You can deduct documented expenses related to the rental (e.g., common costs, repairs, depreciation).
• Applying a 10% cost ratio: In this case, 90% of the revenue is considered income, and the 15% personal income tax is paid on this amount. This is the simplest and most commonly used method for private individuals. If you are engaged in short-term accommodation services (i.e., renting out the property for days or weeks, such as on Airbnb), then:
• You must pay a tourism tax for your guests.
• VAT liability may also arise if your revenue reaches the annual VAT exemption threshold (HUF 18 million in 2025).

What can I do if the tenant does not comply with the house rules or disturbs the neighbors?

First, it is worth giving a friendly verbal warning, and if that is ineffective, notify them in writing that their behavior violates the contract or the condominium/community's house rules. Keep a record of the written notice. If the tenant regularly and seriously violates their contractual obligations or the house rules, and repeated warnings are unsuccessful, you have the right to terminate the rental agreement. The termination must be in writing, justified, refer to the breach of contract, and include a deadline for moving out.

Why is a condition report (handover protocol) important at the beginning and end of the lease?

A condition report (handover protocol) provides very important protection for both the landlord and the tenant at the beginning and end of the tenancy. It describes the condition of the apartment, fixtures, walls, floors, windows, appliances, and furniture, as well as the meter readings and the number of keys and remotes handed over. This documents in detail exactly what the situation was when the tenant moved in. If a dispute arises at the end of the contract about the return of the security deposit or possible damages, the protocol can factually determine whether the tenant actually caused new damage or if it was a pre-existing issue. It is worthwhile to attach photos or a video to the protocol to avoid any interpretational disputes later about what the apartment looked like at the beginning of the contract.

Before You Sign: Final Due Diligence

• Read the Entire Document: Do not rely on a verbal summary from the landlord or property manager. Read every word of the lease agreement.
• Ask Questions: If any part of the lease is unclear or seems unreasonable, ask for clarification. Do not be afraid to negotiate certain terms.
• Get Everything in Writing: Any verbal agreements made with the landlord or property manager should be added to the written lease.
• Keep a Copy: Once signed by all parties, ensure you receive a complete copy of the rental agreement for your records.

By taking the time to thoroughly review and understand your rental agreement, you can enter into your new tenancy with confidence and a clear understanding of your rights and responsibilities.