or house in Prague

The rental market in Prague is very much dictated by the influx of foreign investments and the large number of people relocating to Prague. Rents in Prague correspond to those of other similar sized cosmopolitan cities in Europe. The following information will help you find a suitable home away from home.

Rent

The advertised rent is an asking price and may be negotiable. A good planning tactic is to consider properties asking up to 10% more than your budget. Your Svoboda & Williams agent will guide you in anticipating what offer you can make that the owner may accept.

Furnished apartments / houses

A wide variety of furnished apartments is on the market, ranging from almost unlivable to the most fashionable. If you don’t readily find what you want, your potential landlord might agree to furnish the property for an offer of a long-term lease with guarantees, and a rent increase that reflects his cash outlay.

Point of interest

Much of the housing in the Czech Republic is subject to some form of rent control. Just after the revolution in 1989, existing tenants were given rights to stay in their apartments for quite low regulated rents. When a property's original tenant vacates a property, however, the owner can legally charge a free market rent.

Service and utility charges

Residential tenants in Prague pay charges for utilities in addition to monthly rent. Except for telephones, cable TV and Internet, most utilities are billed only once or twice per year. Tenants pay monthly deposits for utilities, which are reconciled when the bills with the final meter readings are received. Utility bills are usually kept in the name of the landlord, and the tenant either pays the utility providers directly or reimburses the landlord. Some landlords prefer to transfer the meters to the name of the tenant.

Service charges or common charges cover the cost of maintaining the common areas of a building (electricity and cleaning in the public halls, elevator maintenance, management , etc.) in the case of apartment buildings, apartment villas and in private housing developments. Service charges are based on the actual costs of maintaining the premises and are charged proportionately to the individual units.

Residential tenants frequently have the service charges included in the rent. Some leases specify rent and services. In high-end buildings with services such as reception, swimming pool, sauna, etc., the service charges are frequently charged in addition to the rent and can be as high as 3.7 EUR/m2, reception being the highest cost. Most residential buildings come in at about 2 EUR/m2.

Security deposits

In Prague, upon signing a residential lease, the tenant pays the landlord a security deposit equal to 1-3 months' rent. The landlord holds this money for the duration of the lease term and is allowed to use it only if the tenant damages the property or fails to make the agreed payments. The landlord returns the security deposit at the end of the lease after the property is vacated and all of the tenant's bills are paid and damages rectified.

Fees

Real estate agencies in Prague charge their clients a commission equal to one-month rent for the long term leasing of residential property. “Long term” means 12 months or more. Fees are typically due when a lease is signed. Fees for other types of services vary from agency to agency.

It should be noted that residential landlords in Prague also pay an agency fee when a real estate agency finds the tenant for its property. Many times one agent represents the tenant while a second represents the owner. Each party then pays its own real estate agent. In some cases one agent will represent both the tenant and the landlord, and will collect a commission from each side.