Renting an apartment "on a handshake" is often perceived as a way to save time on paperwork and avoid extra fees for registration. However, as Tetyana Danilenko, Chairman of the Civil Law and Procedure Committee of the Association of Lawyers of Ukraine, notes in a comment to RBC-Ukraine, the absence of a written agreement turns both parties into hostages of a verbal understanding: neither the owner nor the tenant can prove in a dispute exactly what was agreed upon.
What the law requires: written form is mandatory
According to Article 810 of the Civil Code of Ukraine, under a housing lease agreement, the owner transfers or undertakes to transfer a premises to the other party for residence for a certain period for payment. At the same time, the legislation equates the concepts of "lease" and "rent". Article 811 of the Civil Code of Ukraine explicitly establishes that such an agreement must be concluded in written form, although it does not require notarization. In the text of the agreement, the parties fix the key parameters in advance: the amount of rent, the term of residence, the procedure for paying utility bills, and the number of residents.
Risks for the owner: from disputes over damages to taxes
Without a written contract, it is extremely difficult for the owner to prove the main terms of the agreement in court. A separate problem is the condition of the apartment: it is recommended to attach an acceptance-transfer act to the contract, which records the furnishings at the moment of move-in. Without it, the owner finds it difficult to separate damages caused by the tenant from those that existed previously. In addition, in case of non-payment of rent, utility bills, or damage to furniture and appliances, the owner's ability to protect their rights is noticeably reduced, and a written contract in many cases becomes an important basis for evicting tenants who fail to fulfill their obligations or remain in the apartment after the term has expired. An additional risk is the tax authority: if the fact of illegal renting is established, the law provides for not only administrative but also criminal liability for non-payment of taxes in large amounts.
Risks for the tenant: sudden eviction and rent hikes
A verbal agreement makes the tenant vulnerable: the owner can demand to vacate the premises or increase the rent at any time. If the cost and term are not fixed in writing, the tenant finds it difficult to protect themselves from unilateral changes to the terms. In a contract, however, the parties can stipulate how many days' notice is required for early termination, which violations are considered material, when the premises must be vacated, and how the transfer of keys and property takes place. The lessor must be the owner or an authorized person: a representative by power of attorney, a manager, or a tenant with the right of subletting.
Fraud and conclusion: the contract as insurance
A separate threat is the risk of becoming a victim of fraudsters. The contract must be concluded specifically with the owner or a person duly authorized by them; otherwise, a person may transfer money to someone pretending to be the owner, and after the real owner appears, be left without housing and funds. According to Danilenko, a written contract is not a formality or an "enemy" of the parties, but their insurance: the clearer the rules are written at the beginning of the lease, the less chance of conflict in the future.
