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A flat rental agreement in Tbilisi: what to check

Renting looks simpler than buying, which is why people check it more carelessly. Yet this is exactly where it is easy to lose a deposit, to find yourself without a home a month before the paid term runs out, or to discover that the previous tenant's utility bills are now yours to pay.

Is the person letting the flat the owner

The first thing to see is an extract from the register for the property and the identity document of whoever is signing the agreement. Matching the name in the extract against the passport is a basic check, and one often skipped because the flat is shown by an agent rather than the owner.

If a representative signs, a power of attorney is needed, and it must expressly state the right to let the property and to receive payments. If there are several owners, either all of them sign or one signs with authority from the rest.

A separate case is a sublet, where the person letting the flat is not the owner but a tenant like you. This is lawful if their own agreement allows it. If it does not, your agreement is vulnerable, and you will hear about it from the owner.

What registering the agreement achieves

An unregistered agreement is binding between the parties, but it is not apparent to third parties. Registering the lease in the register makes it visible - including to a buyer, should the flat be put up for sale.

The practical meaning is simple: on a sale, a registered lease does not vanish with the change of owner, whereas an unregistered one may simply not be recognised by the new owner. The registration requirements and procedure are checked on the date of the transaction.

The deposit

The deposit is the most common point of dispute on moving out. It is worth fixing four things in the agreement: the amount, what exactly it may be withheld for, the deadline for returning it after you leave, and how any deduction is calculated.

Just as important is a condition inventory taken on moving in: a list of furniture and appliances, meter readings, photographs of damage that already exists. Without one, a year later an argument about whether the glass was already cracked comes down to who sounds more convincing.

Utilities

The agreement should say plainly which payments are included in the rent and which are paid separately: electricity, water, gas, heating, internet, building maintenance, refuse collection. Separately - who pays for the upkeep of common areas, if the building levies such a charge.

Meter readings are recorded on moving in, either in the agreement itself or in an annex to it. Otherwise the previous tenant's debt formally becomes yours - not as a matter of law, but in practice: the supply is cut off to whoever lives there.

Term, renewal and moving out

Four provisions are worth checking, and they are most often drafted in the landlord's favour:

• The term and what happens when it ends - tacit renewal or termination.
• Changes to the rent: whether the landlord can raise it within the term and with how much notice.
• Early termination: on what terms each side can do this, how much notice they give and what happens to the deposit and any advance payment.
• Access to the flat: whether the landlord may come round and on what terms.

A clause letting the landlord terminate at any time while the tenant may only do so by forfeiting the deposit is common. It is a matter for negotiation, not a given.

Payment and proof of it

A transfer to the owner's bank account leaves a trail; cash does not. If you pay in cash, each handover is confirmed by a receipt with the date, the amount and the period it covers. A receipt from an agent is not proof of payment to the owner.

The language of the agreement

The agreement may be in Georgian, in English or bilingual. Where there are two versions, the agreement states which prevails in the event of a discrepancy. Signing a text in a language you do not read, relying on a spoken summary, means accepting the risk that it says something else.

What to prepare for the consultation

• The address and cadastral code of the property.
• An extract from the register for the flat.
• The landlord's passport, or the power of attorney if a representative signs.
• The draft agreement, preferably in advance and in full.
• Whether the flat is let by the owner or by a tenant subletting it.
• The amount of the deposit and the terms for returning it.
• A list of the payments included in the rent and those paid separately.
• Meter readings on the day of moving in.
• An inventory of furniture, appliances and existing damage, with photographs.

Disclaimer. This material is for reference, sets out the general procedure and is not legal advice. It has been prepared without regard to the circumstances of any particular matter and cannot serve as a basis for decisions on filing documents, entering transactions or taking other legally significant steps. Reading it or relying on it does not create a lawyer-client relationship. Document requirements, fee levels and time limits are set by Georgian legislation and secondary rules; the law and the practice of applying it change, so the currency of any information is checked on the date of the enquiry. Decisions in state procedures are taken by the competent authority, and no outcome can be guaranteed.