It is very common for foreigners; European and non European alike to either buy Prague apartment rental apartments for buy-to-let purposes, or to invest in residential buildings for the purpose of development or investments income. If you happen to be the owner of real estate in the Czech Republic, then you need to be aware of certain rules and regulations that you need to abide by with under Czech law that affects all landlords. These will vary according to the type of real estate and so the rights and obligations that are given to landlords who own apartments may apply to those people that actually who own the buildings. For this you will need a consultant that deals with Prague property.
With property in Prague your consultant will tell you that the landlord is responsible for looking after, using and maintaining the property that they buy. Some of these rules and regulations are the same for all landlords who own property. There are some very basic obligations that are imposed upon all landlords no matter how they own the property for example it doesn't matter if they own it as a private individual or as a legal entity.
If you let out the property to other people, your consultant will tell you that you are then obligated to hand over the property to the tenant in a condition that is not considered slummy. You are in this sense obligated to remove any thing that is wrong with the apartment that have the potential to make it impossible for the apartment to be used such as a heater. When this is put into practice this means that you need to regularly inspect the property, keep the apartment well maintained. Your Prague property consultant will help you with the following:
The Building Code regulations deal with the building permission, changes to the construction of the building and maintenance work. It stipulates that the property can only be used in accordance with the use as specified in the capitalization certificate. You as the landlord are also obliged to maintain the building in a good condition.
Some of the other responsibilities that you as the landlord will have for your rental property in prague include the keeping of books and records for accounting purposes showing any income and expenses that you may have accumulated. The accounting information is what will give you the basis for the preparation of various tax declarations which will have things in it like a tax return, real estate tax, transfer tax, gift tax etc.
Basically, it is not good enough to simply own the property as you also have to ensure that you follow all of the rules and regulations that are set out about handling the rental property in Prague. You can choose to handle this yourself, if you are already living in Prague full time. However if you have bought a property specifically for investment purposes and are not regularly visiting Prague, then it makes much more sense for you to hand over the management of the property to experienced professionals that can do this on your behalf. That way you will not end up in hot water with the government of Prague.