My Lease Contract Expired. What Should I Do?

17/06/2025

The complete guide for renters and landlords wanting to know their rights and obligations when a lease expires.

The Big Misunderstanding: "My Lease Expired, I Must Leave"

If you think you must leave your home because "your lease contract has expired," you're mistaken. Thousands of Greek families abandon their homes unjustly each year, while many landlords wrongly believe they can evict tenants. The reality is different: in Greece, a minimum three-year lease term is mandatory.

What the Law States About Lease Duration

The Basic Principle: Mandatory Three-Year Term

According to Article 2, Paragraph 1 of Law 1703/1987 (as amended by Paragraph 5 of Article 1 of Law 2235/1994):
"The lease of a residential property is valid for at least three (3) years, even if a shorter period or an indefinite term was agreed upon."
In practice, this means:

  • Even if you signed a 1- or 2-year contract, you have the right to stay for 3 years.
  • The landlord cannot force you to leave before the 3 years.
  • The three-year term is mandatory for both parties.

When Can a Shorter Duration Apply

The only exception: shortening the three-year term with a new agreement that:

  1. Is made at least 6 months after the original contract signing.
  2. Is documented with a notarized document.
  3. Is agreed upon voluntarily by both parties.
    Without these conditions, the contract remains a mandatory three-year term.

How Rent Increases Are Calculated

Rent Increase 2025: Calculation and Real Data

What Is the Inflation Index? The inflation index (Consumer Price Index - CPI) measures the rise in prices of goods and services. If it's 3%, it means prices increased by an average of 3% compared to the previous year.

When Does Rent Increase Automatically?

  • Automatic increases apply when:
    • The contract specified a duration <3 years.
    • There is no adjustment clause in the contract.
    • Each lease year is completed.

Rent Increase Calculation Formula
Legal increase = Current rent × (75% × ELSTAT inflation index)
Why 75% and not 100%? Greek law protects tenants by limiting the increase to less than the inflation rate.

2024-2025 Inflation Data

  • 2024 Inflation: 2.7% (annual average)
  • January 2025 Inflation: 2.6%
  • 2025 Forecast: 2.3-2.8%

Calculation Examples with Real Data

  • Example 1: Rent 500€, 2024 inflation (2.7%)
    • Increase: 75% × 2.7% = 2.025%
    • New rent: 510.13€ (+10.13€)
  • Example 2: Rent 800€, 2024 inflation (2.7%)
    • Increase: 75% × 2.7% = 2.025%
    • New rent: 816.20€ (+16.20€)
  • Example 3: Rent 1,200€, 2024 inflation (2.7%)
    • Increase: 75% × 2.7% = 2.025%
    • New rent: 1,224.30€ (+24.30€)

Where to Find the Official Index

ELSTAT publishes monthly announcements for rent adjustments based on the Consumer Price Index (CPI). Check it at www.statistics.gr.

What Happens After the Three-Year Period - Indefinite Lease

Automatic Conversion to Indefinite Lease

Once the 3 years (or more if a longer term was agreed) are completed, the lease automatically becomes indefinite.

Rights After the Three-Year Period

  • For the Tenant:
    • Can remain in the property as long as desired.
    • Can leave anytime with proper notice.
    • Protected from arbitrary evictions.
  • For the Landlord:
    • Can terminate the lease with a legal process.
    • Must justify the termination.
    • Must adhere to notice periods.

Damages, Repairs, and Deposits: A Detailed Guide

Basic Principle: Natural Wear vs. Actual Damage

  • Natural Wear (Landlord Pays):
    • Wear from normal, good-faith use.
    • Aging of materials and components.
    • Wear due to the passage of time.
  • Actual Damage (Tenant Pays):
    • Damage from negligent use.
    • Accidents and careless handling.
    • Harm from failing to follow instructions.

Detailed Responsibility Table

  • Plumbing Installations
    • Landlord Pays:
      • Water heater replacement due to natural wear (>8-10 years).
      • Main pipes within walls and floors.
      • Major damage affecting the building structure.
      • Toilet tank replacement due to age-related wear.
    • Tenant Pays:
      • Minor repairs: siphons, faucets, small fittings.
      • Water heater damage from misuse or neglect.
      • Frost damage if the space isn't heated.
      • Unclogging due to misuse.
  • Electrical Installations
    • Landlord Pays:
      • Basic electrical faults: wiring, panel.
      • Grounding upgrades for safety.
      • Major repairs concerning the installation.
    • Tenant Pays:
      • Bulbs and fuses for daily use.
      • Damage from overloading due to misuse.
      • Switches and outlets: minor repairs.
  • Electrical Appliances and Equipment
    • Landlord Pays:
      • Replacement due to aging: appliances >10 years.
      • Air conditioners: basic maintenance and major repairs.
      • Built-in appliances part of the construction.
    • Tenant Pays:
      • Repairs on good appliances: <5-8 years.
      • Damage from misuse: lack of maintenance.
      • Filter replacements: air conditioners, hoods.
  • Floors, Walls, and Painting
    • Landlord Pays:
      • Painting after >5 years: natural fading.
      • Major repairs: structural issues.
      • Floor replacement due to natural wear.
    • Tenant Pays:
      • Painting if stayed <2 years and the house needs it.
      • Stains and damage caused by the tenant.
      • Damage from smoking: wall yellowing.
    • Cost Sharing:
      • Duration 2-5 years: proportional to time.
      • Partial wear: due to both parties.

Lease Deposits: A Complete Guide

Legal Deposit Limit

  • Maximum Amount: Up to 2 monthly rents (Article 8 of Law 1703/1987).
  • Prohibited: Deposit >2 months or rent prepayment.

When Is the Deposit Returned?

  • Full Return:
    • No outstanding debts (rent, utilities).
    • Property returned in good condition.
    • No damage beyond natural wear.
  • Partial Return:
    • Deduction for repair costs of actual damage.
    • Deduction for debts (with proof).
    • Deduction for cleaning costs (if required).

Deadlines and Process

  • Return Deadline: Within a reasonable time (1-2 months after handover).
  • Process:
    1. Property Handover: By the landlord.
    2. Damage Check: Comparison with initial condition.
    3. Deduction Calculation: Based on evidence.
    4. Balance Return: To the tenant.

Rights and Obligations: Supplementary Guide

Tenant Rights

  • During the Three-Year Period:
    • Right to Stay: Full protection from evictions.
    • Rent Stability: Protection from arbitrary increases.
    • Subletting Right: With conditions and approval.
    • Minor Improvements: For ease of use.
  • After the Three-Year Period:
    • Lease Continuation: Automatically indefinite.
    • Free Departure: With proper notice.

Tenant Obligations

  • Timely Payment: Of rent and utilities.
  • Property Care: Normal and good-faith use.
  • Immediate Notification: Of serious damage.
  • Good Handover: In similar condition to receipt.

Landlord Rights

  • During the Three-Year Period:
    • Timely Collection: Of rent and agreed expenses.
    • Periodic Inspection: With prior notice.
    • Repair Demands: For tenant-caused damage.
  • After the Three-Year Period:
    • Lease Termination: With legal process and justification.

Landlord Obligations

  • Unobstructed Use: Of the property.
  • Major Repairs: Structural and infrastructure.
  • Adherence to Agreements: All contract terms.
  • Deposit Return: Timely and justified.

Prohibited Practices and Common Mistakes

  • Prohibited for the Landlord:
    • ❌ Rent prepayment: Beyond the current month.
    • ❌ Deposit: Exceeding 2 monthly rents.
    • ❌ Pressure to Leave: Before the three-year term.
    • ❌ Arbitrary Increases: Outside legal limits.
  • Risks for the Tenant:
    • ⚠️ Caution: Non-payment of utilities is treated as rent non-payment.
    • ⚠️ Caution: Uncompensated damage can lead to eviction.

Practical Tips to Avoid Issues

  • For Tenants:
    • ✅ Don't panic when the lease "expires."
    • ✅ Politely inform the landlord of your legal rights.
    • ✅ Keep records of all documents and receipts.
    • ✅ Consult a lawyer if needed.
  • For Landlords:
    • ✅ Study the law before acting.
    • ✅ Prefer negotiation over legal disputes.
    • ✅ Follow legal procedures for termination.
    • ✅ Maintain good relationships—a reliable tenant is valuable.

Frequently Asked Questions (FAQ)

  • Can I leave before 3 years?
    Yes, but you must pay the remaining rent until the three-year term is complete.
  • Can the landlord evict me before 3 years?
    No, except in exceptional cases (e.g., non-payment, property damage).
  • What if I don't pay utilities?
    It's considered a contract breach and may lead to eviction.
  • How do I calculate the legal increase?
    Formula: Current rent × (75% × ELSTAT inflation index).

Legal Help and Information

Where to Turn

  • Bar Association: For legal advice.
  • ELSTAT: For official adjustment indices.
  • POMIDA: For property owners.
  • Advisory Centers: Municipalities for citizens.

Conclusions

The expiration of a lease contract does not mean mandatory departure. Greek law protects tenants with a minimum three-year term and continues to do so afterward.
Key rules:

  • Every residential lease lasts at least 3 years.
  • After three years, it becomes indefinite.
  • Rent increases are based on official indices.
  • Knowledge is the best protection.
    Most importantly: Proper awareness of your rights and obligations can prevent unnecessary disputes and ensure a healthy rental relationship beneficial for all.

Disclaimer: This article is for general informational purposes only. For specific legal advice tailored to your case, consult a specialized lawyer.