Tenants without written leases and apartment conversion: how to proceed legally
Published 3 November 2026
Tenants without written agreements will not block an apartment building conversion (činžák – a Central European term for a residential building typically with commercial space on the ground floor), but they cannot be ignored. Under the Czech Civil Code (č. 89/2012 Sb.), a lease concluded orally or through the parties' conduct is valid and affords the tenant the same legal protection as a written lease. The owner must therefore first document these relationships, then either convert them to written agreements or properly terminate them. Self-help eviction is unlawful and harms the owner's interests.
Summary
- A residential lease does not require written form; 'without a lease agreement' does not mean 'without a lease' under the Czech Civil Code (č. 89/2012 Sb.).
- The first step is comprehensive documentation: who lives where, since when, rent amount, duration and what was agreed.
- Solutions include a written lease, a termination agreement, or notice to quit (výpověď – formal notice under Czech law) on grounds permitted by statute.
- Self-help eviction is forbidden; contested eviction is handled exclusively through court proceedings.
- In a conversion project, resolving lease relationships falls within the legal gate – the initial phase before proceeding to the next stage.
Why unregistered tenants will not stop the conversion
Unclear lease relationships are a solvable obstacle, not a reason to abandon the conversion. However, they do require time and proper documentation, so we address them at the very beginning.
Upon transfer of ownership, the buyer enters into the tenant's rights and obligations under the lease (§ 2221 of the Czech Civil Code č. 89/2012 Sb.). A buyer of an individual unit will therefore inherit the tenant living in it and will want to know the legal basis for their occupancy. Unclear relationships reduce buyer confidence, complicate financing, and delay sales. The project passes through three gates (legal, permit, sales gate), and only confirmed information advances to the next phase; lease relationships are resolved in the legal gate. For more on the phases, see How it works.
Legal status of a tenant without a written agreement
A tenant without a written lease agreement is typically a full tenant if the parties agreed to the lease. The law does not require written form as a condition of the lease's validity, and the parties' intent can be expressed tacitly or through conduct (§ 545 and § 559 of the Civil Code).
Key indicators are: rent is paid regularly, the owner accepts it, and the tenant occupies the property with the owner's knowledge. Such a relationship is typically treated as an open-ended lease. The owner therefore cannot simply terminate it; notice to quit by the landlord must be in writing, based on statutory grounds, and comply with notice periods (§ 2285 et seq. of the Civil Code).
Different is the situation where someone occupies the property without the owner's knowledge or consent. This is not a lease but unlawful occupation (neoprávněné užívání), which is addressed through eviction and, if applicable, restitution of unjust enrichment (§ 2991 et seq. of the Civil Code). Distinguishing between these cases is the first step in legal assessment.
Step-by-step procedure
A reliable approach begins with documentation and ends with either a written lease agreement or a lawful termination of the lease.
- Map the situation. For each unit, establish who lives there, since when, whether rent is paid, to whom and how, and who pays for services.
- Gather evidence. Bank statements, receipts and correspondence prove the agreement's content and duration.
- Assess each case separately. Distinguish between tenants with an agreement, those with lifetime use rights (dožívací práva), and those with no legal title whatsoever.
- Propose a written lease agreement. Capture the actual agreed terms: rent and deposit amounts, lease duration, unit handover, and any security deposit.
- Or offer a termination agreement. This can be set for a fixed date, often with a severance payment or assistance in finding alternative housing.
- Only if negotiation fails should you issue notice to quit or file suit. Notice must meet statutory grounds and form requirements; contested eviction is decided by a court.
Solutions compared
An agreement is usually the quickest path, court proceedings the slowest and least predictable. The choice depends on whether the tenant is in lawful occupation and whether the unit will be sold occupied or vacant.
| Solution | When appropriate | Main risk |
|---|---|---|
| Written lease agreement | Tenant pays rent and unit will be sold with tenant | Must correctly set rent amount and lease duration |
| Termination agreement | Unit to be sold vacant | Tenant may claim severance payment or relocation assistance |
| Notice to quit | Statutory ground exists | Invalid if form or grounds are defective; tenant may contest in court |
| Eviction suit | Unlawful occupation without legal title | Court proceedings duration and associated costs |
In occupied buildings, multiple approaches are often combined depending on each unit. The chosen procedure is reflected in the project timeline and budget, which is part of the Audit and Plan.
Risks and the owner's responsibility
The biggest risk arises when the owner tries to solve the problem alone. Cutting utilities, changing locks, or removing belongings constitutes interference with the tenant's rights; the Civil Code permits self-help remedies only in very narrow circumstances (§ 14). Consequences can include claims for protection of possession, substantial damages, and in extreme cases criminal liability.
- Invalid notice due to missing grounds or defective form; the lease then continues unchanged.
- Tax implications. Unreported past rental income must be addressed under the Income Tax Act (č. 586/1992 Sb.); consult a tax advisor or the Czech tax authority (Finanční správa).
- Lost payment history, making it impossible to prove what was agreed and for how long.
- Worse terms for buyers: unclear lease status reduces buying appetite and financing availability, potentially cutting property value significantly.
This is not cause for panic but a reason to proceed carefully with proper legal guidance.
Typical scenarios in practice
Most cases fall into a few recurring patterns. These are generic models, not specific client situations.
Long-term tenant paying in cash
The lease exists but is poorly documented. The solution is a written confirmation of the arrangement and a new lease with bank transfers; cash payments are in any case limited by the Cash Transaction Act (č. 254/2004 Sb.).
Tenant following a deceased relative
Continuation of the lease is assessed under the Civil Code provisions on joint tenancy and lease succession (přechod nájmu bytu). Without proper assessment, one cannot assume the lease has ended.
Person with no legal title
If no use agreement ever existed, a demand to vacate and, if necessary, an eviction suit are appropriate. The owner should have documented that they did not tolerate the occupation.
What to do now
The first step is to compile a complete inventory of all occupied units and supporting documentation. Prepare a list of units and occupants, payment records, available correspondence, service records, and information on any arrears or disputes.
Based on this information, the Audit and Plan (deliverable within six weeks) will assess which relationships need only be documented and which require negotiated or legal resolution, and how this affects value and timeline. If you want both preparation and implementation under a single contract, see our End-to-end implementation service.
You can obtain a non-binding offer or assessment via the form below the article. The typical value difference between selling as a whole and unit-by-unit ranges from +20–40 %; the exact figure will be determined by feasibility analysis.