The Croatian Government has announced significant changes to the Tenancy Act, aimed at protecting tenants from sudden and unjustified rent increases. These steps aim to ensure greater security and predictability for tenants, limiting the ability of property owners to arbitrarily increase the prices of residential properties.
According to the announcements, the new regulations impose strict limits on the frequency and manner of rent increases. The main innovation is that rent can be increased at most once a year, and such a change is no longer arbitrary. Instead, the increase in costs is linked to the annual index, aiming to ensure greater stability and fairness in the relationship between landlords and tenants.
For the implementation of these changes, a lease agreement exceeding the permitted amount will be declared void and will have no legal effect. This measure further protects the rights of tenants against unjustified demands. In the event of an increase, the tenant has the right to terminate the contract within 30 days, with rent paid at the old, contracted rate during that period.
These changes come in the context of a significant rise in living costs. Last year, the increase in prices of residential properties was almost 16 per cent compared to the previous year. In the first three months, average prices were higher by more than 14 per cent compared to the same period the previous year. The amendments to the law are to be presented during the preparation of the new legal framework, with the new rules set to come into force on 1 January 2027.
