In recent months, dramatically rising energy prices will have a major impact on rental housing. A large part of the owners of these properties have energy written directly on themselves and their tenants have not changed the amount of the deposit. As the lawyer Pavel Strnad from AK Polverini Strnad points out, annual arrears can easily reach tens of thousands of crowns in the current situation, even in a smaller apartment, which can complicate the situation of tenants and, consequently, landlords.
“Energy prices have risen dramatically compared to last year, and gas prices are multiples of the original prices. The owners of the rental property did not usually anticipate this, nor did they agree with the tenants on an immediate adjustment of the amount of the deposit. So often, tenants have no idea that the price increases that are being disputed everywhere will also apply to them. But when they see the annual bill, they will be unpleasantly surprised and complications will bring not only them but also the landlords. They do not place enough emphasis on the legal protection of their property and often have insufficiently set up contracts with their tenants,” says lawyer Pavel Strnad from AK Polverini Strnad.
Gas and electricity supply rates have practically doubled since last year and continue to rise. The example of a specific Prague property of 3 + kk intended for rent speaks for itself. Due to the change in rates, the total annual costs for the current period are expected to increase by approximately 40 to 100 percent with unchanged consumption – from CZK 44,362 to CZK 88,724 compared to the previous period. The higher number refers to a situation where the transition to a new supplier is forced due to the collapse of the existing one.
“Of course, it depends on specific tariffs and possible price fixations for individual energy providers, but the increases will be dramatic sooner or later anyway. This will have a negative impact on all tenants and, in the event of their insolvency, on landlords. The last resort – evicting a non-paying tenant – can take years, while the property owner will have no income from it all the time, on the contrary, he must spend additional funds,” concludes lawyer Pavel Strnad from AK Polverini Strnad.
