Renting without a contract: what are the risks of this practice?

Although it is not common, some people live in rented housing without a lease agreement. But is this legal? What risks arise from living in rented housing without a contract? Let's clarify all the doubts.

Is it legal to have a rental without a contract?

You can live in a rented apartment based on a verbal rental agreement.

Rights of the parties in a lease without a contract

Tenant rights without a contract

• The landlord cannot raise the rent unless there is a receipt confirming it.
• The right to use and enjoy the property without being disturbed.
• The right to demand necessary repairs for the proper use of the housing.
• The right of first refusal to purchase a property if the owner puts it up for sale.
• The right to carry out renovations to adapt housing in the case of disability for oneself or one's spouse.
• The right to a minimum rental period and enjoyment of extensions established in the LAU.

Owner's rights without a contract

• The right to receive the monthly rent agreed upon with the tenant.
• The right to reclaim the property after the lease term expires.
• The right to set the rent and the security deposit for the lease.
• The right to evict a tenant arises if they stop paying rent, engage in unacceptable, harmful, dangerous, or illegal activities, or carry out work that alters the structure of the property without consent, etc.

Consequences of renting without a contract

Here are the problems that may arise when living in a rented apartment without a contract:

• Issues with housing return.
• Difficulties with updating the rent.
• The inability to determine the start of the lease.
• Return of the deposit.
• Fines for renting without a contract.
• Problems with receiving benefits.

So, it is possible to live in a rented apartment without a contract, but in case of conflicts, everything will depend on the versions of the parties and their interests. To protect yourself and reduce risks, it is best to have a written rental agreement and keep all documents related to the rental.