Rental market in Serbia — why doing it properly matters
Informal renting — without a contract or with an inadequate one — is still common in Serbia. For tenants, this means risk of sudden eviction without legal protection. For landlords, it means unpaid rent and difficult eviction procedures.
A good lease agreement protects both parties. Here’s what you need to know.
Lease Agreement — Mandatory Elements
Under Serbian law (Law on Obligations and Housing Law), a lease agreement must be in written form to be legally valid. While notarization is not mandatory, it is recommended for legal certainty.
The agreement must include:
- Identification of both parties — full name, ID number, and address of both tenant and landlord
- Property description — address, floor, size, number of rooms
- Rent amount — in dinars or euros with a currency clause
- Lease term — fixed-term or open-ended
- Deposit amount and return conditions
- Who pays utilities — electricity, gas, water, internet, building maintenance fee
- Termination conditions — notice periods for both parties
- Inventory list — especially important for furnished apartments
Tip: Always attach a furniture and equipment list with photos. This prevents disputes when moving out.
Security Deposit — How Much Is Standard?
In Serbia, the standard deposit is one to two months’ rent. The deposit covers:
- Unpaid utility bills
- Damage to the apartment or furniture beyond normal wear and tear
- Unpaid rent in case of early termination
The landlord is obligated to return the deposit within 30 days of the tenant moving out, with a written explanation of any deductions.
Tenant Rights and Obligations
Rights:
- Peaceful use of the apartment during the lease term
- Protection against self-help eviction — the landlord cannot change locks or remove belongings without a court order
- Right to early termination with proper notice (typically 30–60 days)
Obligations:
- Pay rent on time
- Pay utilities if stipulated in the contract
- Report damage requiring repairs to the landlord
- Not make alterations without written consent
- Respect building rules (especially in apartment buildings)
Landlord Rights and Obligations
Rights:
- Collect rent on time
- Inspect the property with advance notice (typically 24–48 hours)
- Terminate the contract if the tenant breaches their obligations
Obligations:
- Deliver the apartment in livable condition
- Cover costs of major repairs (utilities infrastructure, roof, elevator)
- Provide proper notice before terminating an open-ended contract (minimum 60–90 days)
- Report rental income to the Tax Administration and pay the applicable tax
Tax on Rental Income
Landlords renting out property are legally required to report this income. The tax rate is 20%, reduced by normative expenses (40% of income), resulting in an effective rate of approximately 12% of gross rent.
Failure to report rental income carries the risk of tax audits and retroactive liabilities with interest.
What If the Tenant Doesn’t Pay?
If a tenant fails to pay rent, the landlord cannot evict them without a court order. The process is:
- Written warning with a payment deadline
- Contract termination per the agreement’s terms
- Court eviction proceedings
Court proceedings in Serbia can take several months to a year. This is why screening tenants before signing is critical — check their references and payment history.
EREA Agency — Rental Mediation
EREA Agency assists with apartment rentals in Kragujevac and the surrounding area. We help:
- Landlords: find reliable tenants, prepare contracts, handle formalities
- Tenants: find apartments matching your criteria, negotiate terms, protect your interests
Our mediation fee for rentals is one month’s rent, split between landlord and tenant.
Contact us to find out what’s currently available for rent in Kragujevac. Send an inquiry