The rapid increase in rent prices and housing costs in general is the ‘main’ topic of discussion and reflection.
This is particularly the case for those who are considering taking the next step in their lives by starting a family and are looking for a property with an extra room, or for those whose lease has expired and/or expires in the coming months and are waiting to be informed of new landlord requirements.
Greece is the “champion” in housing costs in the European Union.
In Greece, the cumulative increase in rents from 2018 to 2022 ranged from 37.2% to 42.1% for a family-friendly home. Higher increases are mainly recorded in smaller properties, suitable for students.
Specifically, according to recently published data, in 2017-2023 demanded student housing rental prices increased by 60% in Athens and patras, The second largest increase was recorded exceeding 50%-55%.
The increasing cost of housing no longer affects only the lower economic classes, but also the higher incomes, especially after repeated increases in commodity prices.
the The cost of housing in Greece It’s jumped to such levels that it’s up to 60%-70% of the average monthly salary, and if it’s a family residence, up to the “good” gross salary. A significant part of our citizens are forced to make cuts even in their most basic needs. According to a recent survey, 76.9% of renters cut back on necessities or receive financial assistance from third parties once housing costs are paid.
Greece is the “champion” in housing costs in the European Union, with 4 out of 10 Greeks live in homes with mortgage, rent or bill arrears According to Eurostat.
Requirements for lease renewals
A lot of residential leases tend to have “birthdays” in August and/or September, especially for families. February can also be described as the birth month of leases.
September and Februaryare the months in which most transfers, lease renewals, and the start of new contracts occur.
This summer and especially in August and September, a large part of the leases signed for three years will have to be renewed, in 2020, or the tenants will have to look for new housing for rent.
Already at the beginning of June/July this year, some landlords who rent properties have contacted their tenants to renew their three-year lease which is about to expire in the next 2-3 and/or 4 months.
Part of the property owners, in order to renew the lease for the same tenant, are asking for a rent increase of 25-30% compared to the 2020 rent.
In the event that the tenant does not accept the rapid increase, he will have to include his family in the spiral of housing search and experience what many of our fellow citizens who are looking for housing have experienced in the last 2-3 years.
Landlords realize that finding affordable housing while finding housing that matches the condition of the property with the required rent is a ‘joker’. They know that the tenant will have to accept any increase because there are no options and at the same time moving costs a lot.
It is worth noting that most of the landlords who ask for large increases are not natural persons who rent out one or two properties, but the owners (natural and / or legal persons) of several apartments and / or entire residential buildings.
One can report that the tenant does not agree in his obligations and ask the landlord a large increase with the intent of expelling him. This is a well-founded logic, but a large part of the tenants who have filed and faced rapid increases in lease renewal, are absolutely “correct” in their obligations, without debts in utilities and DEKO bills, on the contrary, there are cases where they pay rent earlier than the date agreed upon per month.
A typical example is the landlord’s communication with the tenant where when the tenant mentions that the raise they are asking for is large (25%), the landlord replies, “Go to the classifieds sites and see they are asking for 50 square metres.”
In a similar situation, in Galatsi, for a residence of 60 square meters. One-bedroom apartment whose three-year lease expires in mid-October at a rent of €460 per month, the landlord has requested an increase in the rent to €540 per month, but the renewal is only for one year. At the same time, in the rental contract he sent to the tenant, he explicitly stated that at the end of the year, the rent of 540 euros / month is not valid and a new lease must be determined.
The tenant, fearing a further renewal of the lease in October 2024, requested a three-year renewal at a rent of €540 per month. The landlord refused, and proposed a monthly rent of €600 per month for a three-year lease. The tenant accepted the total increase of 30% of the initial rent due to circumstances and at the same time fearing increases in the following years.
We must point out, however, that there are also owners who do not participate in the “march” of the increases. These are landlords who rent one and / or two properties, and with this money they either educate their children, or pay off loan obligations and the most important thing for them is to have the same tenants over time who regularly pay their obligations, and take care of them. Depending on the data, they discuss together the potential increase within a reasonable framework.
Availability of real estate according to the required rent in the province of Attica
Searching for an affordable family home for rent in Attica is a ‘joker’. Properties available for rent (80 sqm – 110 sqm, above the first floor) with a required rent of up to €600, according to advertisements posted on websites in the central areas of Athens, constitute 19.96% of all houses for rent in the northern suburb only 0.71% and the southern suburb 4.03%, the western suburbs 35.58%, the rest of Attica 27.20%, and in Piraeus 35.46%.
According to the data, among the houses available for rent in the center of Athens with a required rent of up to 600 euros per month, 8 out of 10 were built before 1980, i.e. at least 43 years old.
It is important to note that in all regions of South Attica, the availability of properties for rent is much lower compared to previous years. At the same time, most of the properties available for rent are available with asking rent prices in excess of 800€ per month.
A typical example is the Northern Suburb where 93.11% of the properties available for rent have a rent asking of more than 800€/month, while in the Southern Suburb it is 81.44%. In the center of Athens, 65.66% of available homes have a required rent of more than €700 per month, while only in the regions of Piraeus (47.46%), western suburbs (50.31%) and the rest of Attica (56-97%).
According to these data, the cost of renting a suitable house for a family seems, in almost all regions of North Attica, to amount to a full salary. Utilities, energy costs and other bills are not included.
Rent required for a family residence in the 16th district of Attica
According to data obtained from real estate advertisements available in the areas of Athens with the greatest demand from families to rent a dwelling, the average asking rent price is 11.31 €/m². (For an apartment of 80 square meters – 110 square meters above the first floor, built after 2000.
The average minimum rental price in Athens this year is €9.09/sqm. And the average maximum is 13.1€/m2, meaning that the family will only have to pay rent from 900€/month to 1,310€/month if it is a 100m2 dwelling.
The initial conclusion of the lease should always be made with a written lease agreement. The deadline for posting electronic advertisements is the last day of the month following the start of the lease, modification, modification, termination, etc.
The minimum mandatory term for new leases is three years, which is mandatory for both parties, regardless of whether a shorter term has been agreed upon in the lease. Any longer contractual period will bind the parties, unless otherwise agreed.
After the end of the three years, the lease usually continues with the tacit consent of the landlord and tenant, for an indefinite period. This means that the tenant can leave whenever he wants, and the landlord can claim his house whenever he wants.
In addition, rental modifications, extensions and alterations, as well as rental solutions can be made through a simple electronic declaration in the AADE app.
Collateral is an action firmly rooted in the ritual. It is the amount of money (1 or 2 rents) that the tenant pays to the landlord at the beginning of the lease. It generally aims at the financial security of the landlord, in the event that the tenant fails to fulfill his obligations. If, for example, he refuses to pay rent or damages the property, the landlord may retain the insurance bond (or part of it) as compensation.
There is no special law regulating the payment of security for the wording of the agreement. Therefore, its work is freely determined by the contracting parties, who negotiate their terms when concluding the agreement. This means that the tenant can negotiate with the landlord the amount of the security as well as manage it.
“Avid problem solver. Extreme social media junkie. Beer buff. Coffee guru. Internet geek. Travel ninja.”