Hire and Loan Law (Amendment – Restriction on Rent Increases) Bill

What does the bill do?

The bill adds a new subchapter to the Rental and Borrowing Law limiting rent increases in residential apartments. A landlord will not be able to raise the rent except in accordance with the new provisions: in short-term contracts (shorter than three years), an increase is permitted at the rate of the rise in the index plus 2%, and in long-term contracts (at least three years), an increase at the rate of the index plus 4%. In both cases, the increase will be only at the end of the rental period agreed in the contract. If a landlord raised the rent by an amount or rate higher than permitted, the tenant will be able to sue for the difference within six months of the end of payment.