Legal Rules on Renting Out an Independent Unit

Renting out one's unit is one of the most natural rights of the owner. However, in a building subject to condominium ownership, this right is not unlimited. The rules the tenant must follow, the possible restrictions in the management plan and the owner's liability are matters to be known when renting out. In this article we explain the condominium aspect of renting out an independent unit.

The right to rent out and its limits

The owner may rent out the independent unit to any person they wish. However, the tenant, just like the owner, must comply with the common living rules of the building and with the Condominium Ownership Law. Renting out therefore does not eliminate the owner's obligations toward the building; it only means a change in who exercises use.

Tenant's obligations

Under Article 35 of the KMK and general provisions, a person residing as a tenant in an independent unit is also subject to the common living rules:

• The obligation not to disturb the neighbours (KMK Art. 18) applies to the tenant as well.
• The tenant must use common areas for their intended purpose and must not damage them.
• The tenant is bound by the living rules in the management plan.
• The tenant must comply with the decisions of the assembly of unit owners.

If the tenant acts contrary to these rules, legal proceedings may be initiated against the tenant and, in some cases, against the owner.

Restrictions in the management plan

The management plan cannot directly prohibit renting out, but it may contain restrictions on how the independent unit is used. For example, a clause stating that the unit may only be used as a dwelling prevents the tenant from opening a workplace there. It is therefore important to review the management plan before renting out to avoid problems later.

Who is liable for dues?

The most confused issue in practice is dues liability. The owner is principally liable for common expenses; however, the lease contract may leave payment of dues to the tenant. If the tenant does not pay, the management can claim its receivable from the owner. Ultimate liability toward the management therefore remains with the owner; the arrangement between the owner and the tenant concerns only their internal relationship.

What happens in serious breaches by the tenant?

If the tenant is constantly disturbing the neighbours or making common life unbearable, the unit owners and the management can resort to legal remedies. In serious and continuous breaches, even eviction of the tenant from the independent unit may be on the agenda. Because the owner may also face liability arising from their tenant's conduct, care must be taken in selecting the tenant and drafting the lease.

Summary: The owner may rent out their unit, but the tenant too must obey the common living rules and the KMK. The management plan may restrict the manner of use (for example, a residential-only clause). Ultimate liability for dues toward the management remains with the owner; in serious breaches, eviction of the tenant may arise. For condominium rules, see our blog guides, and keep your dues tracking in order with our digital tools.

Frequently Asked Questions

Who is liable if my tenant does not pay dues?
Ultimate liability toward the management remains with the owner. Even if payment is left to the tenant by the lease, if the tenant does not pay, the management may claim its receivable from the owner.

Can the management plan prohibit renting out?
Prohibiting renting out directly is generally not possible; however, restrictions on the manner of use (for example, use only as a dwelling) may be imposed.

My tenant is disturbing the neighbours — what can be done?
The tenant is also subject to Article 18 of the KMK. The management and the owners may initiate legal proceedings; in serious and continuous breaches, eviction may arise.

Related content

In connection with this topic, our articles on land share, independent unit and appurtenance and common area cover the subject in more detail.

This content is for general information only and does not constitute legal advice. For your specific situation, please consult a lawyer.