AZE.US
Renting out an apartment without a written agreement can expose the property owner to serious legal and financial risks.
In the event of a dispute, it may become difficult for the landlord to prove the agreed rent, payment deadlines, deposit terms, utility responsibilities, or liability for damage to the property.
Roman Garashov, a member of the Azerbaijan Bar Association and chairman of the Azerbaijan Consumers Council, told AZERTAC that informal rental arrangements significantly weaken the legal position of property owners.
According to Garashov, without a written contract, the parties may struggle to prove the basic terms of the rental relationship, including the monthly rent, payment schedule, deposit amount, utility costs, and the procedure for handing over and returning the property.
One of the most common problems is a tenant failing to pay rent for an extended period or refusing to vacate the apartment.
In such cases, the owner may have to go to court. However, without sufficient written evidence, the proceedings can become lengthy and costly, while the landlord’s ability to use or rent out the property remains restricted.
Another major risk is the accumulation of unpaid electricity, gas, water, and other utility bills.
Disputes may also arise over damaged furniture, appliances, walls, plumbing, or renovation elements. Without a formal handover report documenting the condition of the apartment, it can be difficult to prove that the damage was caused by the tenant.
The absence of a rental agreement can also create problems in emergencies.
If a fire, flood, gas leak, or another incident caused by the tenant damages neighboring properties, the apartment owner may face civil claims, insurance disputes, and other legal procedures.
Garashov also pointed to cases in which rental properties are used for illegal purposes, occupied by unregistered individuals, or become a source of repeated public-order violations.
Without an official contract, the landlord may become one of the main people required to provide explanations to law enforcement authorities.
Unregistered rental activity may also be treated as a violation of tax law, potentially resulting in additional tax liabilities and financial penalties.
Garashov said a written rental agreement is not merely proof of an arrangement between the landlord and tenant. It is also a key legal safeguard protecting the owner’s property, income, and financial interests.
AZE.US