Rental agreement

RESIDENTIAL LEASE AGREEMENT

This lease agreement (hereinafter the "Agreement") is entered into in [City where the contract is signed] on [Contract date] between the following parties:

1. PARTIES

1.1 Landlord:
[Landlord's name/company]
Registry code / personal identification code: [Landlord's registry code / personal ID code]
Address: [Landlord's address]
Telephone: [Landlord's telephone]
E-mail: [Landlord's e-mail]
Bank account (IBAN): [Landlord's bank account (IBAN)]
(hereinafter the "Landlord")

1.2 Tenant:
[Tenant's name]
Personal identification code: [Tenant's personal identification code]
Telephone: [Tenant's telephone]
E-mail: [Tenant's e-mail]
(hereinafter the "Tenant")

2. LEASED PREMISES

2.1 Leased premises: [Address of the leased premises], area [Area (m²)] m², number of rooms [Number of rooms] (hereinafter the "Dwelling"). The Dwelling shall be used solely as a dwelling.

2.2 The terms of the Agreement also apply to the furnishings and appliances made available for the Tenant's use together with the Dwelling (Law of Obligations Act (VÕS) § 272 lg 3).

3. DELIVERY AND CONDITION OF THE PROPERTY

3.1 The condition of the Dwelling, the furnishings and photographs of the condition shall be recorded in a delivery and acceptance report, which is an annex to the Agreement. The Dwelling is deemed delivered upon signature of the report by both Parties. The Dwelling is presumed to have been delivered in the condition described in the report (VÕS § 334 lg 1).

3.2 The Landlord shall deliver the Dwelling together with its accessories in a condition suitable for use in accordance with the Agreement and shall maintain it in that condition during the term of the Agreement (VÕS § 276 lg 1). Upon delivery, the Parties shall record the meter readings and the number of keys delivered in a form which can be reproduced in writing.

4. LIVING ARRANGEMENTS

4.1 Pets: [Pets]. Subletting: [Subletting]. Alterations to the premises: [Alterations to the premises]. Smoking: [Smoking].

4.2 The Dwelling is occupied by the Tenant together with the following persons: [Co-residents]. The Tenant may accommodate in the Dwelling his or her spouse, registered partner, minor children and parents incapacitated for work without the Landlord's consent (VÕS § 289); clause 4.3 applies to other persons taking up permanent residence.

4.3 The Tenant may grant the use of the Dwelling or a part thereof to another person, including by sublease, only with the Landlord's consent, which the Landlord may refuse only for good reason (VÕS § 288 lg 1–2). The Tenant is liable for the acts of the sub-user as for its own acts (VÕS § 288 lg 5).

4.4 The Tenant may make improvements and alterations to the Dwelling only with the Landlord's consent given in a form which can be reproduced in writing (VÕS § 285 lg 1). The Landlord may demand restoration of the previous situation only if this has been agreed in the same form (VÕS § 285 lg 2); VÕS § 285 lg 3 and § 286 apply to the removal of and compensation for improvements.

4.5 If keeping a pet is permitted under clause 4.1 or the Landlord has given consent thereto, the Tenant shall ensure that the animal does not disturb the residents of the building or the neighbours and is liable for damage caused to the Dwelling by the animal.

4.6 Smoking in the Dwelling, including on the balcony, is not permitted and is deemed use contrary to the Agreement.

4.7 The Tenant shall take into account the interests of the residents of the building and the neighbours (VÕS § 276 lg 3) and shall comply with the house rules if they have been communicated to the Tenant.

5. RENT AND PAYMENT

5.1 Monthly rent: [Monthly rent (€)] euros. Payment deadline: [Rent payment deadline]. The rent shall be transferred to the Landlord's bank account [Landlord's bank account (IBAN)]. A payment is deemed made on the day on which the amount is received in the Landlord's bank account.

5.2 The Tenant is not required to pay rent for the period during which the Tenant could not use the Dwelling for its intended purpose due to a defect for which the Tenant is not liable and which the Tenant is not required to eliminate itself; if the possibility of use has merely decreased, the Tenant may reduce the rent accordingly (VÕS § 296 lg 1–2).

6. ANCILLARY COSTS

6.1 Arrangement for payment of ancillary costs: [Arrangement for payment of ancillary costs]. Ancillary costs concerned:
[Ancillary costs]

6.2 The Tenant shall pay the ancillary costs listed in clause 6.1 monthly on the basis of meter readings and the service providers' invoices, either directly to the service provider or to the Landlord on the basis of an invoice submitted by the Landlord.

6.3 The agreement on ancillary costs must be in a form which can be reproduced in writing (VÕS § 292 lg 1). The Tenant shall bear the costs of maintenance and improvement of the building (e.g. repair fund payments) only if this has been agreed upon entering into the Agreement (VÕS § 292 lg 1¹). The Tenant may examine the documents evidencing the costs (VÕS § 292 lg 2).

7. SECURITY DEPOSIT

7.1 No security deposit is required under this Agreement.

8. RENT INCREASE

8.1 The Landlord may increase the rent no more often than once a year after the Agreement is entered into (VÕS § 299 lg 1 p 1), giving notice thereof in a form which can be reproduced in writing at least 30 days in advance together with the reasons and the information required by VÕS § 299 lg 2; an increase not complying with the requirements is void (VÕS § 299 lg 3).

8.2 The Tenant may contest an excessive rent increase within 30 days after being notified of it (VÕS § 303 lg 1). If the Tenant does not agree to the rent increase, the Tenant may additionally cancel the Agreement within 30 days after receiving the notice, by giving at least 30 days' notice.

9. OBLIGATIONS OF THE LANDLORD

9.1 The Landlord shall keep the Dwelling in good order and shall eliminate within a reasonable time defects which have not been caused by the Tenant and which the Tenant is not required to eliminate itself. If the Landlord fails to do so and the defect precludes or significantly restricts the use of the Dwelling for its intended purpose, the Tenant may cancel the Agreement without observing the notice period; if the Landlord is in delay, the Tenant may eliminate the defect itself and claim compensation for the necessary expenses (VÕS § 279 lg 1 and 3).

9.2 The Landlord shall respect the Tenant's domestic peace and private life. The Landlord may inspect the Dwelling or carry out work there only in the cases provided in VÕS § 283, giving timely advance notice and taking into account the Tenant's interests. In the event of an emergency, the Landlord may take immediate measures to prevent damage, informing the Tenant at the first opportunity.

9.3 The Landlord shall notify the Tenant without delay of emergencies that have come to its knowledge and of planned interruptions. The Tenant decides on insuring its property and liability.

10. OBLIGATIONS OF THE TENANT

10.1 The Tenant shall pay the rent and ancillary costs on time and shall use the Dwelling with care, as a prudent owner and in accordance with its intended purpose (VÕS § 276 lg 2).

10.2 The Tenant shall notify the Landlord without delay of any defect in the Dwelling, any danger to the Dwelling and any right of a third party to the Dwelling that has come to the Tenant's knowledge (VÕS § 282 lg 1). The Tenant shall eliminate at its own expense defects which can be eliminated by minor cleaning or maintenance (VÕS § 280).

10.3 The Tenant shall tolerate the work necessary for preserving the Dwelling, eliminating defects and preventing damage (VÕS § 283 lg 1) and shall allow the Landlord access to the Dwelling in an emergency.

11. CONTRACTUAL PENALTY

11.1 In the event of a material breach by the Tenant of a non-monetary obligation, the Tenant shall pay a contractual penalty of [Amount of the contractual penalty (% of monthly rent)]% of one month's rent for each breach. A contractual penalty may be claimed for the following breaches: granting the use of the Dwelling to another person without the Landlord's consent, making improvements or alterations without the Landlord's consent, and breach of the conditions concerning pets or smoking provided in clauses 4.1, 4.5 and 4.6 (VÕS § 287 lg 3).

11.2 The contractual penalty may not exceed 10% per breach and 20% in total per month of the monthly rent and of the ancillary costs and costs of maintenance and improvement of the building payable by the Tenant (VÕS § 287 lg 4). No contractual penalty applies to a breach of monetary obligations, including rent arrears (VÕS § 287 lg 1).

12. LATE PAYMENT INTEREST

12.1 If the payment deadline is exceeded, late payment interest at the rate of [Late payment interest rate (%/year)]% per annum applies. An agreement on late payment interest exceeding more than three times the rate of late payment interest provided in the second sentence of VÕS § 113 lg 1 is void (VÕS § 287¹ lg 2).

13. TERM OF THE AGREEMENT

13.1 This Agreement is entered into for an unspecified term.

14. TERMINATION OF THE AGREEMENT

14.1 The Agreement terminates at any time by agreement of the Parties.

14.2 Either Party may cancel an Agreement for an unspecified term in the ordinary manner by giving at least three months' notice (VÕS § 312 lg 1).

14.3 Either Party may cancel the Agreement extraordinarily for good reason (VÕS § 313 lg 1) and if the use of the Dwelling involves a significant danger to human health (VÕS § 317). The Tenant has the right to cancel the Agreement extraordinarily if the Dwelling becomes unfit for use for a reason arising from the Landlord.

14.4 The Landlord has the right to cancel the Agreement extraordinarily if the Tenant is in delay in paying the rent, ancillary costs or costs of maintenance of the building, or a significant part thereof, on two consecutive payment dates, or if the arrears of rent or security deposit exceed 2 months' rent, or if the arrears of ancillary costs or maintenance costs exceed 2 months' respective costs (VÕS § 316 lg 1); before cancellation, the Landlord shall grant the Tenant, in a form which can be reproduced in writing, a time limit of at least 14 days for paying the debt (VÕS § 316 lg 3).

14.5 The Landlord has the right to cancel the Agreement extraordinarily by giving at least 30 days' notice if the Tenant or a sub-user breaches the obligation to use the Dwelling with care or to take into account the interests of the neighbours despite a warning, to a significant extent or intentionally; in the event of intentional damage to the Dwelling, the notice period need not be observed (VÕS § 315).

14.6 The Landlord may cancel the Agreement only on a ground provided by law (VÕS § 309 lg 3, § 275). The notice of cancellation must be in a form which can be reproduced in writing; the Landlord's notice shall specify the Dwelling, the date of termination of the Agreement, the ground for cancellation and the procedure and time limit for contesting it (VÕS § 325 lg 1–2). The Tenant may contest the Landlord's cancellation as contrary to the principle of good faith before a rent committee or a court within 30 days after receiving the notice (VÕS § 326 lg 1, § 329 lg 1). If the Tenant lives together with his or her spouse or registered partner, the Tenant needs their consent in a form which can be reproduced in writing in order to cancel (VÕS § 325 lg 3).

14.7 The transfer of the Dwelling does not terminate this Agreement — the new owner assumes the rights and obligations of the Landlord (VÕS § 291). The new owner has the right to cancel the Agreement within 3 months only if he or she urgently needs the leased premises for his or her own use (VÕS § 323 lg 1).

15. RETURN OF THE PROPERTY

15.1 Upon termination of the Agreement, the Tenant shall return the Dwelling together with the furnishings and all keys in a condition corresponding to the delivery report (if drawn up) or to the condition at the time of entering into the Agreement. The Tenant is not liable for ordinary wear and tear but is liable for other damage unless the Tenant proves that it occurred in circumstances which did not arise from the Tenant or from a person to whom the Tenant transferred the use of the Dwelling in accordance with the Agreement (VÕS § 334 lg 2).

15.2 Upon return, the Landlord shall inspect the Dwelling and notify the Tenant without delay of defects for which the Tenant is liable (VÕS § 336 lg 1). If the Tenant fails to return the Dwelling on time, the Landlord may claim the agreed rent for the period of delay and compensation for damage exceeding it (VÕS § 335).

16. FORCE MAJEURE AND NOTICES

16.1 A Party shall not be liable for a breach of obligations arising from the Agreement if the breach is excusable due to force majeure (VÕS § 103). A Party shall notify the other Party of a circumstance of force majeure without delay.

16.2 Notices which have legal consequences shall be given in writing or in a form which can be reproduced in writing (including by e-mail) at the addresses specified in the Agreement. A Party shall notify any change in its contact details without delay.

17. DISPUTE RESOLUTION

17.1 Before applying to a court, a rent committee or arbitration, the Parties shall try to resolve the dispute through negotiations, including by submitting a written claim and allowing a reasonable time for a response. Failing agreement, the dispute shall be resolved as follows: [Dispute resolution]. The competence of the rent committee, including the limit on the amount of the claim and the area in which it operates, arises from the Rental Dispute Resolution Act; a dispute not within the competence of the rent committee shall be resolved in court. The law of the Republic of Estonia applies.

18. FINAL PROVISIONS

18.1 Amendments to the Agreement shall be made in writing or in a form which can be reproduced in writing. The Tenant may transfer the rights and obligations arising from the Agreement only with the Landlord's consent given in the same form (VÕS § 290 lg 1). If any provision of the Agreement is invalid, this shall not affect the validity of the remaining provisions. The Agreement enters into force once both Parties have signed it.

19. LEGAL BASIS

19.1 A residential lease agreement is governed by §§ 271–338 of the Law of Obligations Act (including the amendments of 14.01.2021).

19.2 Warning: any term of this Agreement which would place the Tenant in a worse position than under the Law of Obligations Act is void (VÕS § 275) — this applies regardless of whether such a term has been included in the Agreement by mistake.