ROMANIA Law and Practice Contributed by: Monia Dobrescu and Mădălina Trifan, Mușat & Asociații
6.8 Costs Payable by a Tenant at the Start of a Lease Although security deposits for rent are not required by law, they are common in practice. The same applies to fit-out works performed by the tenant. In addition, in order to be enforceable against subsequent owners, the lease must be regis - tered in the Land Book and the tenant has to bear the related fee. This is useful, but not man - datory. The tenant has to pay no further addi - tional costs at the beginning of a lease. 6.9 Payment of Maintenance and Repair For the maintenance and repair of the common areas (eg, parking lots and gardens), each tenant pays an amount proportional to its leased area. 6.10 Payment of Utilities and Telecommunications The payment of utilities and telecommunications costs can be freely negotiated by the parties. If there are several tenants occupying a property, the general cost of utilities is usually paid by the landlord and re-invoiced to the tenants based on their consumption. As for telecommunications, each tenant normally concludes agreements directly with these suppliers. 6.11 Insurance Issues The landlord usually concludes a building insur - ance policy and an insurance policy for natu - ral disasters, with the latter being imposed by current legislation with regard to dwellings and residential units. The tenant usually concludes insurance policies relating to the assets and business within the leased premises (assets, activity, persons).
COVID-19 During the lockdown imposed in response to the pandemic, certain measures were implemented to help those tenants in need, mostly related to postponing rent payments; this is currently freely negotiated between parties. Therefore, the par - ties may agree on clauses depending on the area of interest (eg, rent abatements in the event of future pandemics, construction build-out/supply chain issues, force majeure definitions), in order to secure the agreement and prevent potential risks caused by the COVID-19 pandemic. 6.5 Rent Variation Unless the parties agree otherwise, the rent remains the same for the entire duration of the lease. In Romania, the indexation of the rent is not mandatory, remaining at the choice of the par - ties. However, such clauses are common in long-term lease agreements. It is important to mention that the courts may modify the parties’ rights and obligations in light of exceptional and unforeseen events. 6.6 Determination of New Rent The parties may agree for a rent change to be carried out under certain conditions and on the basis of specific calculation methods. It is important to note that many leases provide for an annual indexation of the rent, whereby the amount is changed according to certain eco - nomic indicators. 6.7 Payment of VAT The rental of real estate property located in Romania is generally VAT exempt without deduction rights. However, the right to opt for VAT (19% standard rate) may be exercised under certain conditions.
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