Tenancy or lease renewal in Iran
Renewing a tenancy or lease agreement in Iran typically involves direct negotiation between the landlord and tenant. If an agreement is reached, a new contract can be signed, or the existing one may be extended, often with adjustments to the rent.
Tenants and landlords generally begin discussions about renewal a few months before the current contract's expiration. This allows ample time for negotiation, agreement on new terms, and, if necessary, for the tenant to find new accommodation or for the landlord to find a new tenant without undue pressure.
Start 60 days ahead
It is advisable to start discussions with the landlord or tenant at least two months before the current lease expires to allow for negotiation and arrangement of a new agreement or alternative housing.
The process
- 1Review the terms of the current tenancy agreement.
- 2Initiate communication with the landlord or tenant to express interest in renewal and discuss new terms, such as rent adjustments or changes to the lease duration.
- 3Negotiate and agree upon the new terms of the tenancy, including rental price, duration, and any other conditions.
- 4Prepare a new written tenancy agreement or formally document the extension of the existing one, incorporating the agreed-upon changes.
- 5Both parties (landlord and tenant) sign the new or extended agreement, sometimes in the presence of a real estate agent (مشاور املاک - moshaver amlak) who can register it with the Real Estate Agencies Union system.
- 6If applicable, arrange for the payment of any new security deposit or adjustment to the existing one.
What to bring
- Current tenancy or lease agreement
- Identification documents for both landlord and tenant (e.g., National ID Card - کارت ملی)
Who handles it
No specific government authority is solely responsible for tenancy renewals; it is primarily a private contractual matter. However, the Real Estate Agencies Union (اتحادیه مشاوران املاک - Ettehadiyeh Moshaveran Amlak) can provide guidance or facilitate new contracts.
There is typically no official government fee for renewing a private tenancy agreement itself. If a real estate agency facilitates the renewal or registers a new contract, they may charge a commission, which is usually a percentage of the annual rent, split between landlord and tenant. The exact percentage should be confirmed with the agency.
What commonly goes wrong
- Ensure all new terms, especially rental price and duration, are clearly stipulated in writing in the new or extended agreement to avoid future disputes.
- Be aware that rental prices are frequently adjusted upwards upon renewal due to inflation and market conditions; negotiate these terms carefully.
- If using a real estate agent, confirm their commission structure and ensure they register the new agreement in the official system if that service is provided.
- Understand local regulations regarding rent increases, as there may be government-issued guidelines or caps in certain periods or cities, which should be considered during negotiations.
Sources
- قانون روابط موجر و مستاجر - Rental Relationship Law rc.majlis.ir
- سامانه املاک و اسکان - Real Estate and Housing System amlak.mrud.ir
Other documents in Iran
Tenancy or lease renewal in other countries
Often renewed together
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