Last updated: 19 March 2015
ARE YOU A TENANT OR AN OWNER? EXPENSES YOU MUST BEAR
Last week, the Romanian Parliament passed Law no. 34/2015 (published in the Official Journal no. 172 of March 12, 2015), obliging condominium associations to submit each quarter, by post or by e-mail, to their members a detailed situation of accommodation charges they have to bear, as well as a financial standing of the association.
This legislative change gives us the opportunity to remind you the expenses to be borne by owners/tenants and the basic principles of their payment.
EXPENSES BORNE BY THE OWNER
Even if it is not an expense in the sense of the term used in tenancy relations, the property tax (on buildings or on land) is paid by the owner to the local State budget. This tax is paid annually, in two equal instalments, until March 31 and September 30 included.
As regards accommodation charges - such as heating, cold and hot water, gas, electricity – they are also paid by the owner, unless the apartment is leased.
These charges are paid to the condominium association, which is an autonomous non-profit entity composed of the majority of the owners in a condominium. The condominium association is in charge of the administration and management of common areas and it is created with the written approval of the simple majority of the owners.
Accommodation charges are paid each month and the amounts to be paid by owners are generally displayed at the entry of each building.
These charges also include elevator maintenance, electricity for the building’s common areas, security or garbage removal. As mentioned at the beginning of our article, from now on condominium associations are obliged to inform owners each trimester of the association’s financial standing and of the expenses they have to bear, either by post or by e-mail.
EXPENSES PAID BY TENANTS
In Romania, if a building is leased, accommodation charges, such as water, gas, electricity, Internet or TV subscriptions are paid in most cases by the tenant and the obligation to pay such expenses is expressly provided in almost every lease agreement.
Minor repairs caused by the normal use of the leased space are also paid by the tenant, whereas major repairs are paid for by the owners, unless they were caused by the tenant’s misconduct.
Furthermore, please note that lease agreements between natural persons must be concluded in writing and registered with the competent tax authority ; thus, such agreements become enforceable titles with respect to the payment of the rent in the agreed terms.
As regards the date of payment of the rent, the parties can freely establish such date. If the agreement does not provide a specific date, the rent must be paid on the first day of each month if the agreement does not exceed one year or on the first
day of each trimester if the contract is concluded for at least one year.