Increase in Rent by the Landlord

Updated:

QUESTION

Hello, I would like to consult with you regarding the landlord’s right to increase the rent. We have a fixed-term contract (1 year) with the landlord, which we extended for another year with an annex last month, without any other changes. After signing the annex, the landlord contacted us about two weeks later, informing us that the rent will be increased. The contract does not specify that the landlord has the right to change the rent amount at any time. We would like to stay in the apartment, but the rent increase is unjustified since we have had no arrears so far. Does the landlord have the right to do this? Thank you for your help.

ANSWER:

Since the lease agreement is a bilateral legal act, the landlord cannot unilaterally increase the rent, but an agreement between both contracting parties is required. The landlord could unilaterally increase the rent if such a possibility were explicitly agreed upon by the parties in the lease agreement. In practice, the lease agreement may specify, for example, an annual rent increase based on the inflation rate for the previous calendar year. It is also important to distinguish between the rent amount and payments for utilities related to the use of the apartment.

JUDr. Veronika Michalíková, MBA