Renting a home immediately after purchase is, in principle, possible from a legal point of view, but the situation differs depending on the financing method and compliance with certain legal and fiscal conditions. Specialists from the legal and financial fields explained to “Adevărul” what rules must be followed, what restrictions may appear and how long the investment can be amortized.
The rental contract must be submitted to ANAF within 30 days of signing. Archive photo
Overall, the specialists show that, although the law allows the quick rental of a home after purchase, the existence of a mortgage or special financing programs may introduce additional conditions, and compliance with legal and fiscal requirements remains essential to protect the investment and avoid contractual risks.
Asked how long after purchasing a home you have to wait until you rent it, lawyer Elena Grecu, founder of Grecu Partners, stated that Romanian law does not impose a minimum period between the time of purchasing a property and the time of renting it. This explains that “based on art. 555 of the Civil Code, the owner has the right to use his property, and the rental contract is regulated by art. 1777 et seq. Civil Code”, so that “the building can be rented immediately after the acquisition of the ownership right and its registration in the Land Register”.
If the home is taken with a mortgage, you have to see what the bank says about the rental
The lawyer points out, however, that the situation becomes more complex when the home is purchased through a mortgage loan. “If the home was purchased with a mortgage, the credit agreement must be checked. In practice, many banks condition the rental on obtaining the written agreement, in the context of the mortgage right regulated by art. 2343 et seq. Civil Code“, said lawyer Elena Grecu for “Adevărul”, warning that “failure to comply with these clauses may attract contractual consequences, including the declaration of early maturity“.
Regarding the necessary conditions for a legal rental, Elena Grecu shows that “to legally rent, the owner must have a valid title to the property and comply with any contractual limitations“. She explains that “cthe rental agreement is concluded in written form” and “must be registered with the tax authority”, by declaring it in the Virtual Private Space and submitting Form 168 on the website of the National Tax Administration Agency within 30 days of signing or amending.
According to her, “the document under a private signature registered at ANAF acquires a certain date and can constitute an enforceable title for the payment of the rent“, and in the case of fixed-term contracts, this can be an enforceable title and for the eviction of the tenant at the end of the term.”This is a huge advantage for the landlord, facilitating quick rent recovery through a bailiff, without a lengthy process”the lawyer emphasizes, also stating that if a contract is not tax registered, “a court action is required to obtain the enforceable title”.
Regarding fiscal obligations, it explains that “vincome from rents is classified as income from the transfer of the use of goods” and is taxed according to tax legislation, and “declaration of income is done through the Single Declaration”.
Special situation for “First House” and New House”
A similar perspective is offered by lawyers Dumitru Lazăr and Alexandru Alexandrescu from Buju Stanciu y Asociații, who emphasize that “inrenting a home does not normally involve waiting time“. They explained to “Adevărul” that, if the owner has the documents in order and the parties agree on the conditions, “the contract can be signed quickly, and the move can be done on the same day, along with the handover-acceptance report, which records the handover conditions”.
However, lawyers draw attention to homes bought through programs such as First House or New House, where “the owner should not rent without the prior consent usually provided in the program documentation and the credit agreement“. Usually, “the consent of the financing bank and, in many cases, the approval of the authority managing the guarantee is required”, procedure which “can last from a few days to a few weeks”. In these cases, they emphasize, the home “it can be rented not when you find the tenant, but when you also have the necessary written confirmations”.
For a fair and safe rental, specialists recommend “written contract, with duration, rent, guarantee, payment term, maintenance rules and termination conditions“, as well as “registration of the contract at ANAF”, “traceable payments” and “handover-receipt report with inventory and indexes.” They show that, for longer-term contracts, “the contract can be noted in the land register” to protect the tenant's rights.
How long do you depreciate the purchase of a home if you rent it
Beyond the legal aspects, the profitability of a house bought for rent also depends on the financing method and the characteristics of the property, Anamaria Greu, CEO and founder of iFink, told “Adevărul”! Finance.
She gave the example of a €120,000 apartment purchased with a 30-year mortgage with an average interest rate of 5.5% and a down payment of 15%, where “at a monthly rate of about 570 euros and an initial rent of 700 euros results in a positive cashflow of about 130 euros per month“. Under these conditions, “the advance can be recouped in about 9–12 years”, and the recovery of the total value of the property is estimated at “approximately 12–15 years in nominal terms”.
In the case of full purchase from own funds, it shows that “the initial gross return will be around 7%, which will lead to a simple payback in around 14 years”and if the rent increases annually, the investment “can pay for itself in about 11–13 years in nominal terms”.
“If, however, the rent will increase by 2-5% per year (without periods of non-renting or major maintenance costs) the investment can be amortized in approximately 11-13 years in nominal terms, and adjusted with an inflation of 3-4% per year, the real recovery period will be around 12 and 15 years”the expert declared for “Adevărul”.
Regarding choosing a home for investment, Anamaria Greu emphasizes that “the home is an income generating asset, not a personal living space”, and the essential criteria are “location”, “housing type” and “price-to-rent ratio”, along with maintenance costs and construction quality.
