The rights and obligations regarding lease and use of apartments or parts of an apartment are governed by the Apartment Lease Act. By amendment to the legislative framework of 13 July 2018 a twenty-year old problem is being solved and balance established between competing interests of landlords and tenants. Apartment owners (landlords) are given the exact date on which they can freely dispose of their property, whereas up to that date the protected lease is being gradually increased, reducing thereby the gap in relation to the market rent. This exact date shall be 1 September 2023.
Protected tenants, in addition to keeping the status of protected tenants over five years, obtain also a state subsidy when paying the market rent upon expiry of their existing status, for the duration of additional five years. Furthermore, protected tenants shall have the right of pre-emption with regard to apartments owned by the state and local self-government units, primarily at the purchase of apartments under the state-subsidised housing programme (POS), precedence in case of POS apartment lease, precedence in case of subsidised housing loans, and precedence in admittance to homes for the elderly.
in compliance with the provisions of the Act on Amendments to the Lease Act:
The provisions of Article 28.a para 1 prescribe that the amount by which the rent is increased on 1 September of the current year shall be fixed and amount to 1.20 times of the protected rent that the lessee or protected tenant payed on 31 August 2018.
If the amount of the protected rent on 31 August 2018 amounted HRK 100.00, the amount of increase is HRK 120.00 (HRK 100.00 * 1,2), and the rent shall be increased by this amount on every 1 September in the period from 1 September 2018 to 31 August 2023, and shall amount as follows:
- Rent amount from 1 September 2018 to 31 August 2019 HRK 220.00
- Rent amount from 1 September 2019 to 31 August 2020 HRK 340.00
- Rent amount from 1 September 2020 to 31 August 2021 HRK 460.00
- Rent amount from 1 September 2021 to 31 August 2022 HRK 580.00
- Rent amount from 1 September 2022 to 31 August 2023 HRK 700.00
- Apartment Lease Act (Official Gazette 91/1996, 68/18, 48/1998 – Constitutional Court decision, 66/1998 – corrigendum of the Constitutional Court decision, and 22/2006 - Act on the Sale of Apartments intended for janitors)