Hungary Landlord-Tenant Law: 2026 Comprehensive Guide

The Hungarian residential rental market is primarily governed by Act V of 2013 on the Civil Code (effective since 15 March 2014) and Act LXXVIII of 1993 (the Housing Act). 2026 features a significant tightening of the short-term rental market to prioritize long-term housing stability.

1. Notarized Leases (The "Magic Weapon")

Due to slow civil courts, professional Hungarian landlords rely on the közjegyzői okirat (Notarized Declaration).

• Enforceability: If the tenant signs a move-out declaration in front of a Notary Public, the landlord can skip the court process and send bailiffs directly for eviction in case of a contract breach.
• Cost: While it involves a notary fee, it is considered the only viable way to protect large portfolios from non-paying tenants.

2. Rent Control and Increases

Hungary operates on a free-market basis. There are no statutory rent caps.

• Initial Rent: Freely negotiated.
• Indexation: Most contracts include an annual indexation clause linked to the HCSO (KSH) inflation rate to ensure yield protection without yearly renegotiation.

3. Security Deposits (Kaució)

• Industry Standard: 2 months' rent.
• Legal Ceiling: If a landlord demands more than 3 months' rent, the tenant can legally petition for a reduction.
• Purpose: Covers unpaid rent, utility arrears, and property damage beyond ordinary wear and tear.

4. Maintenance Obligations

• Landlord: Responsible for structural integrity, roof, main heating/plumbing systems, and ensuring the property is "fit for use."
• Tenant: Responsible for minor, everyday upkeep (bulbs, filters, loose hinges, sink blocks). Detailed handover protocols with photographs are mandatory for professional compliance.

5. Short-Term Rental Freeze (2025–2026)

The legislative moratorium on new short-term rental (STR) licenses is specific to Budapest and remains in effect until the end of 2026. While the NTAK (National Tourism Data Supply Centre) remains the mandatory registration platform, the freeze itself is enacted via amendments to the Tourism Act and related Government Decrees. Existing licenses remain valid, but no new permits will be issued for Budapest properties until 2027.