AZE.US
A property owner said tourists left a short-term rental apartment heavily damaged before leaving, highlighting the legal risks landlords face when renting homes without formal agreements.
Videos shared on social media show the apartment in severe disarray. The owner said furniture and interior finishes were damaged and that the condition of the home was discovered only after the guests had departed.
Similar incidents are becoming increasingly common in Azerbaijan’s short-term rental market, according to real estate specialists.
Without an official rental agreement, landlords may struggle to prove who caused the damage and recover compensation from tenants.
A formal contract can document the apartment’s original condition, establish the responsibilities of both parties and specify who must pay for damaged property. It also protects tenants if a landlord demands that they leave before the agreed date.
Real estate expert Elnur Farzaliyev said many landlords avoid formal contracts because of the cost and inconvenience involved.
Notarizing a rental agreement requires a state fee of about 150 manats ($88). For short-term rentals, that can exceed the price of a one-night stay.
The process becomes even less practical when guests leave earlier than expected or when an apartment is rented to a new person every few days. Each tenant would require a separate notarized agreement and another payment.
Disputes may become even more difficult when the property is rented to foreign nationals, particularly if no official document records the terms of the stay.
Experts have proposed reducing contract fees or introducing simplified electronic rental agreements for short-term properties.
They argue that an electronic system would allow landlords and tenants to register the terms of each stay quickly, protect both sides in disputes and bring more of the short-term rental market into the formal economy.
Specialists say legislative changes will be needed to introduce such a system.
AZE.US