- Information for property right holders
- Information for tenants
- Properties under administration
What is the rental scheme?
The Kosovo Property Agency (KPA) was established on the 4 March 2006 under UNMIK Regulation 2006/10. Among other tasks, the KPA is mandated to supervise the rental of abandoned property in Kosovo. In this regard the Agency is managing a rental scheme for properties under its administration. This scheme makes it possible for the property right holder to receive a fixed income from the property by authorizing the KPA to rent it out until s/he decides to utilize the property in any other way.
While the KPA will make reasonable efforts to minimize damage to any property under its administration, the KPA bears no responsibility for any loss or damage to its contents, material or financial or otherwise.
How to join the rental scheme?
Participation in the rental scheme is voluntary and simple. Just schedule a visit to one of the KPA offices and bring with you: your ID-card, your bank written instructions on how to receive payments from abroad, SWIFT (Society for Worldwide Interbank Financial Telecommunication) postal contact details, your mobile phone number, and preferably an e-mail address. Without this we are not able to process the rental payments.
What is the process of receiving rent?
KPA collects rent for the month ahead. Rental money is paid to the KPA and the KPA will transfer the rent to the owner/landlord once it is received. The KPA charges a 5% administration fee for providing rental services to the property right holder. Any bank fees incurred will also be deducted from the rent received.
If the rent is not paid, the KPA will issue an eviction notice. If the tenant still does not pay the rent, the KPA will evict them.
A refundable, one time deposit is also asked when the Rental Agreement is signed. The deposit covers potential unpaid rent or major damage caused by the tenant to the property. The deposit (or remaining portion of the deposit if the tenant causes damage to the property) is returned to the tenant when agreement ends and after a property inspection.
The rent rate is fixed by the KPA on the basis of the current value of the property as stated by public authorities. The rent is therefore not negotiable either by the landlord or the tenant. If the landlord is able to get a higher rental for his property, he may terminate the KPA rental scheme at any time.
The KPA does not guarantee any income from your property. If the property is not rented, no income may be expected. If the tenant does not pay then no payment will be transferred to you. The KPA will evict the tenant that has not paid rent and the KPA will promote your property and try to find a tenant.
How the rent is calculated?
KPA calculates the monthly rent based on the Property Value, as assessed by the respective Municipal Tax Department. Using the assessed Property Value the following factors will be used in order to determine the exact rent payable and they are: life time of property assessed max 80 years for residential property, monthly interest on savings assessed to average bank rate of 3.72%, reduction due to lack of landlord services (not applicable if such services are provided by the landlord). Rent is charged only for the habitable part of a property and 5 % of administrative fee is deducted by KPA to cover the administrative cost of the rental services provided to the property right holder.
The monthly rent is calculated by using the following formula:
|Commercial & Residential Properties - Price = (A x B x D x E + F - G) / 12
|Agricultural Properties - Price = A x C x D
Number of square meters
Municipal TAX Value (this value is assessed by the Municipality and is subject to annual review)
Price per square meter (dependant on class of land)
Property condition of the property (25% adjustment based on current condition of property)
Annual return of investment (monthly interest on savings assessed at a rate of 3.72%)
Value of the property depreciation of property (lifetime of property assessed max 40 years for residential/commercial property)
Reduction due to lack of landlord services (10%)
Who will the tenant be?
When you ask to include your property in the rental scheme, you exclusively authorize KPA to find a tenant. The family already occupying the property may apply. If not, then the KPA promotes your property until a tenant is found.
How do you terminate the rental agreement?
You may terminate the rental agreement at any point in time by written notification to the KPA. Upon receiving written notice, we will notify the current tenant to vacate the property at the conclusion of the lease and finalize the accounts. This process may take up to three months for residential and commercial properties while for agriculture properties the rental agreement will be terminated only after the annual lease agreement has expired
When the property is repossessed, KPA administration of property ends.
How much will the services provided by KPA cost?
The KPA deducts a 5% fee from the paid monthly rental to cover the administrative cost of the rental services provided to the property right holder. In addition, other costs related to the property (such as insurances and taxes) may be deducted in accordance with applicable laws.
Please note that there is a fee imposed by private banks for transferring money to your bank account. Within Kosovo the fees are low, however, if you request the collected rent to be transferred to accounts in banks outside Kosovo, the fees may be as high as €15 per transaction.
How do I become a tenant of a KPA administered property?
It is very easy to become a tenant. If you are looking for a residential property for rent in Kosovo, just schedule a visit to one of our offices click here to find closest KPA office to you and don’t forget to bring with you your ID card and your personal banking information. We will also need to obtain your personal contact information (such as current address, phone number and preferably an email address). KPA officers will assist you and provide you with all necessary information about how to rent a property under the KPA rental scheme. To view the properties available for rent, you can search in our web site click here to search for a property.
How do I choose a property and enter into a rental agreement?
The KPA rental scheme has affordable apartments and houses for rent all around Kosovo. After you have chosen an available property, the KPA will enter into a rental agreement with you as tenant. The rental agreement will be for 1 year, with the option to extend the lease for 1 year at a time.
The KPA rents out the property on behalf of the property right holder who has chosen to put his/her property under KPA administration. The property is rented “as it is” (pictures may or may not be accurate). The KPA and the property right holder will not provide any landlord services or fix any malfunctions/failures on the property. You will not be reimbursed for any improvements/repairs made on the property.
What costs and fees are involved for renting a property?
The KPA will determine the value of the rent based on the current value of the property as estimated by the Municipal Taxation Department. Rent will be collected by the KPA on a monthly basis.
The prices are competitive with the market rate. When entering into the rental agreement you need to pay rent for the current month plus a deposit (2 months rent). This deposit plus any interest will be returned to you at the end of the rental period, provided that you have paid all rent owed and all relevant utilities and provided that you are not responsible for any damage to the property during the rental agreement. If you fail to pay rent in compliance with the rental agreement the KPA will give you notice to pay the rent, if you continue to not pay rent, you will be evicted.
When will I receive the keys when I have rented property?
After you have selected a property, upon receipt of payment of the first rental invoice (including deposit), you will receive the keys to the property.
How does a tenant end the rental agreement?
You or the property right holder may decide to withdraw from the rental agreement at any time, subject to a 2 months notice period, starting from the 1st of the following month. For example: if you or the property right holder give notice (in writing) to the KPA on the 12th of April, your rights and obligations continue until the 30th of June.
The lease agreement can also be ended at the natural expiration of the rental agreement term. This means that at the end of the contract period (1 year) you will be offered the opportunity to renew the lease agreement for 1 year, provided that the property right holder has not requested repossession of the property and you have fulfilled your obligations in accordance with the rental agreement
How to search for available property?
If you want to search for available properties for rent click here.
The KPA does not guarantee any income from your property. If the property is not rented, no income may be expected.
If the tenant does not pay then no payment will be transferred to you. If the tenant does not pay then KPA will execute an eviction on the property and attempt to allocate a new tenant who will agree to pay rent.
KPA takes no responsibility for damage to property in the event that such an eviction process occurs. If the property is rendered uninhabitable during the process KPA will return possession of the property to the property right holder.
If you prefer, you may contact us by phone Monday through Friday (08:00-16:30) by dialing +381 38 222 737.