Montenegro, thanks to its beautiful landscape, growing economy, and favorable cost of living, is becoming a popular destination not only for tourists but also for those looking for long-term rental properties. Long-term rentals in this country are an attractive option for both locals and foreigners who plan to settle permanently or spend part of the year here. The process is relatively simple, but it is worth knowing its details to avoid surprises and ensure a comfortable stay.
Steps in the long-term rental process
The process of long-term rental of a property in Montenegro is simple, but it requires a few key steps that must be carried out with due diligence. Here is a detailed step-by-step guide:
Determine your budget and needs
Before you start your search, decide what type of property you are interested in (apartment, house, villa) and in what location. Defining a budget will help you focus on offers tailored to your capabilities.
Property search
- You can browse online listings on platforms like Airbnb, Booking.com (with long-term rentals), or local property sites.
- It is also worth using the services of local real estate agencies, which have access to more offers and will help in negotiations.
Property Visits & Assessment
- Make an appointment to visit selected premises to check their technical condition, location and equipment.
- Pay attention to the availability of infrastructure, such as public transport, shops or schools, if they are important to you.
Negotiation
- Long-term rentals in Montenegro often allow you to negotiate rent or additional amenities (e.g., minor renovations, adding furniture).
- It is also worth discussing the terms of the contract, such as the deposit or cancellation policy.
Signing the contract
- Once a suitable property is found, the landlord and tenant sign a lease agreement. This contract should be in Montenegrin language, but it is advisable to ask for a translation into a language you understand.
- The contract regulates key aspects such as the duration of the lease, the amount of rent, the deposit and the obligations of both parties.
Rental registration
In some cases, the rental must be reported to the local authorities. This is the landlord’s responsibility, but it is worth making sure that the formalities have been completed.
Handing over the keys and starting the rental
After signing the contract, the keys and the property are handed over. It is worth drawing up a handover and acceptance protocol that documents the condition of the property at the time of handover.
Documents needed for rental
The process of long-term rental of real estate in Montenegro requires the preparation of several documents by both the landlord and the tenant. Their completeness and correctness are crucial for the transaction to be legal and compliant.
Documents needed from the tenant
- Proof of Identity: Passport or ID card if you are renting as an individual. For foreigners, it is also recommended to have a copy of your visa or residence card, if required.
- Proof of financial capacity: The landlord may ask for proof of income, an employment contract, or other documents proving that you can pay rent.
- References (optional): In some cases, the landlord may ask for references from previous landlords.
Documents needed from the landlord
- Deed to the property: A document proving that the landlord is the legal owner of the property.
- Certificate of No Tax Arrears: Indicates that the owner has paid all fees related to the property.
- Proof of Owner’s Identity: Required to confirm the identity of the person signing the contract.
Lease agreement
The key document in the rental process is the lease agreement, which should include the following elements:
- Data of both parties (landlord and tenant),
- Detailed description of the property,
- Duration of the contract (e.g. one year with the possibility of extension),
- Rent and payment terms,
- The amount of the deposit and the rules for its return,
- Rules on property maintenance and liability for damage,
- Conditions for termination.
Deposit
The landlord usually requires a security deposit (usually the equivalent of one or two months’ rents), which is returned at the end of the contract if the property remains in good condition.
Handover protocol
Preparation of a protocol during the handover of the keys, which documents the condition of the property, equipment and possible damages. This is a security for both the tenant and the landlord.
Typical rental terms
A long-term rental agreement in Montenegro is a key document that defines the rules of using the property and the obligations of both parties. Here are the most important terms that a standard rental agreement usually includes:
Duration of the contract
- The contract is most often concluded for a period of 6 months, 1 year or longer, with the possibility of its extension.
- It is worth making sure that the contract includes provisions regarding automatic renewal and termination conditions.
Rent
- The contract precisely specifies the monthly amount of rent, the method and date of payment (e.g. bank transfer by a specific day of the month).
- It may also include a provision on annual indexation of rent in the case of longer contracts.
Security deposit
- The deposit is usually the equivalent of 1-2 months’ rents.
- The contract should specify in which situations the deposit can be retained by the landlord (e.g. for damage to the property).
Scope of liability of landlord and tenant
- Landlord: Responsible for structural repairs, building maintenance, and installations such as heating, electricity, and plumbing.
- Tenant: Undertakes to keep the property in good condition and to repair minor damage resulting from daily use (e.g. replacement of light bulbs).
Additional fees
- The contract specifies who covers utility bills, such as electricity, water, gas, internet or administrative fees (e.g. building maintenance).
- It is worth making sure that any additional costs are clearly defined.
Rules for the use of the property
The agreement may contain provisions regarding the use of the property, such as
- Smoking
- Possibility of keeping pets,
- The number of people who can live in the property.
Termination
- The standard notice period is 1 to 3 months.
- The contract should clearly state in which situations it can be terminated immediately (e.g. arrears in payments or violation of terms of use).
Condition of the property at return
The contract often states that the property must be returned in a condition similar to the initial one, except for normal wear and tear resulting from use.
Insurance policy
Some contracts require the tenant to have liability insurance for any damage caused to the property.
Arbitration in Disputes
The contract may contain a clause on how disputes between the parties are resolved (e.g. mediation or local court).
Practical tips for landlords and tenants
The process of long-term rental of real estate in Montenegro can be simple and hassle-free if both parties approach it properly prepared. Here are some practical tips for landlords and tenants to help avoid problems and enjoy a successful cooperation.
For tenants:
Understand your needs
Determine what you want from the property, including location, number of rooms, available amenities, and budget. Make sure that the property you choose meets your requirements.
Verify the owner and property
Make sure the landlord is the legal owner of the property. Also check its technical condition before signing the contract.
Read the contract carefully
Analyze each point of the contract, paying special attention to termination terms, repair obligations, and deposit policies. Consult an attorney if necessary.
Maintain good communication
Keep open communication with the landlord, especially in the event of a breakdown or need for repairs.
Insurance
Consider purchasing third-party property damage insurance, which can be an additional protection for both you and the landlord.
For landlords:
Draw up a detailed contract
The contract should be clear, include all key rental terms and conditions, and comply with local laws.
Verify tenants
Ask the tenant for documents to prove their identity and, if necessary, references or proof of financial capacity.
Draw up a handover protocol
Document the condition of the property before handing over the keys and ensure that all furnishings are included in the record.
Take care of the maintenance of the property
Regular technical inspections and maintenance of the property can prevent serious problems in the future.
Secure the deposit
Set clear rules about the deposit and when it can be deducted. This will ensure transparency and trust between the parties.
Rental registration
Report your rental to your local authorities if required. This will ensure the legality of the transaction and protect you from potential penalties.
Be available to tenants
Provide easy contact for questions or issues related to the property.
Long-Term Rentals in Montenegro: How to Prepare for a Hassle-Free Transaction
The process of long-term rental of real estate in Montenegro is relatively simple, as long as both the landlord and tenant approach it responsibly. The key to a successful partnership is a well-drafted lease agreement, clear communication and compliance with local regulations. Both property owners and landlords can benefit from long-term rentals, as long as they take care of proper documentation and mutually beneficial terms.
Thanks to Montenegro’s growing popularity as a place to live and work, long-term rentals are becoming increasingly attractive to locals and foreigners alike. Careful planning and taking into account practical tips will help avoid problems and ensure a smooth rental process.
