Renting out a property – whether long-term or for short vacation stays in a resort like Bansko – is a serious economic activity, strictly regulated by Bulgarian law. Owners often underestimate the need for proper documentation, relying on oral agreements or the standard general terms and conditions of online platforms.

This article examines the foundations of tenancy relations according to Obligations and Contracts Act (OCA), to help you protect your investment and avoid costly disputes.

The Rental Agreement: The Backbone of Security

In Bulgarian law, the rental agreement is bilateral and negotiable. Although the law does not require a mandatory written form for validity (oral agreement also gives rise to legal consequences), a written contract is absolutely essential in order to prove the conditions in the event of a possible dispute.

For long-term leases (over 1 year), it is highly recommended that the contract be notarized and entered in the Property Register at the Registry Agency. This guarantees the rights of the parties upon change of ownership and gives the document enforceability with regard to payments.

Key elements of a good contract:

  1. Property personalization: Exact address, area, adjoining parts and description of condition.
  2. Price and payment terms: Rent amount, currency, payment method (bank transfer/cash) and due date (payment date).
  3. Validity period: Fixed-term or open-ended contract (with termination and notice clauses).
  4. Cost breakdown: Clear definition of who covers maintenance fees (common in gated complexes in Bansko), electricity, water, heating and internet.

Rights and obligations under the Civil Code

The law clearly distinguishes between the responsibilities of both parties (Articles 228 – 239 of the Civil Procedure Act). Knowing these norms is key to avoiding the classic „whose responsibility is the repair?“ dispute.

Obligations of the Lessor (Owner):

  • Transfer of possession: You are obliged to provide the property in a condition that corresponds to the use for which it is rented.
  • Major repairs: All damages that affect the structure, building installations (plumbing failures in the walls, roof leaks, heating system damage) or are due to natural wear and tear are at the expense of the owner.
  • Ensuring peaceful use: The landlord must not interfere with the tenant (for example, through unauthorized visits), except for inspections explicitly agreed upon in the contract.

Tenant's obligations:

  • Payment of rent and supplies: The tenant is obliged to pay the rental price and the costs related to the use within the agreed deadlines.
  • Current fixes: It is the tenant's obligation to repair damage due to normal use (e.g. replacing light bulbs, broken locks and sockets, soiling of walls).
  • Care of a good owner: The property must be protected and exploited only for its intended purpose.

The handover protocol: Your insurance

One of the most common mistakes made by owners is the lack of detailed Transmission protocol. This document is an integral part of the rental agreement.

Why is it critical? When vacating the property, the burden of proof is on you – you must certify the condition in which the property was handed over. Without a bilaterally signed protocol and inventory, withholding amounts from the deposit for missing or damaged items is legally unjustified.

What should it contain?

  • Detailed inventory of furniture and appliances (brand, model, condition).
  • Assessment of the condition of walls, flooring, joinery and plumbing.
  • Readings of measuring devices (water meters, electricity meters) as of the date of taking possession.
  • Photographic material (it is recommended that the photos be annexed to the protocol).

Security Deposit Management

A deposit is a sum of money that serves as security for the tenant's obligations.

For long-term rental:

Market practice in Bulgaria requires a deposit of one month's rent. For luxuriously furnished properties in Bansko, it is appropriate to negotiate two rents.

  • Recovery: The deposit does not constitute "final rent." It is refundable. after termination of the contract, handover of the keys and establishment of the absence of obligations and damages.
  • Interception: You have the right to deduct (withhold) amounts for unpaid bills, shortages, or damages caused by negligence, but not for normal depreciation.

For short-term rental (Holiday):

Platforms like Airbnb and Booking have their own damage protection mechanisms, but they are not always unconditional.

  • Tip: For direct bookings, always require a deposit or down payment, payable by bank transfer, or a pre-authorization on a credit card.

Damage vs. Normal Depreciation

The distinction between these two concepts is essential. According to the Leasehold Improvement Act, the tenant not responsible for damage due to normal use.

  • Normal depreciation (At the expense of the lessor): Natural wear and tear of furniture, fading of latex, depreciation of mattresses and appliances over time.
  • Damages and damages (At the expense of the tenant): Broken windows or furniture, stains on upholstered furniture, damage from pets, torn elements.

Important: If the damage is caused by the tenant's fault, he is liable for compensation. If he refuses to pay voluntarily, the amount is deducted from the deposit. If the deposit is insufficient, the difference is claimed in court.

Termination of the rental relationship

The contract may be terminated on the following grounds:

  1. By mutual consent (Termination Annex).
  2. Upon expiration of the agreed term.
  3. With notice: In the case of open-ended contracts, the law provides for one month's notice. In the case of fixed-term contracts - according to what is written in the clauses.
  4. In case of termination due to non-performance: If the tenant does not pay rent or damages the property, the landlord has the right to terminate the contract. In the case of long-term leases, this usually requires written notice with an appropriate period of time for compliance.

Conclusion A proper contract and detailed protocol are not a sign of distrust, but a sign of professionalism. They create clear rules and provide peace of mind for both you as the owner and your tenants.