Leasing a property is sometimes not a real alternative to homeownership in many countries. A low proportion of rented housing hinders the efficiency of the housing market. Reasons for this may be of different natures but, for sure, most of them have roots in the urban leases legal system. A lease conceived as not flexible, not stable, and not affordable for tenants has little opportunity to be successful. At the same time, if it entails legal uncertainties, has low guarantees, and does not have an efficient eviction process, it is neither attractive for landlords who might prefer to
close down their properties and leave them in disrepair. This paper analyses some key legal features in the three countries with the highest proportion of rented dwellings and in five Southern European countries with low proportions of rented properties and tries to find common elements that encourage or discourage citizens from opting for renting a property instead of buying it.
Leasing a property is sometimes not a real alternative to homeownership in many countries. A low proportion of rented housing hinders the efficiency of the housing market. Reasons for this may be of different natures but, for sure, most of them have roots in the urban leases legal system. A lease conceived as not flexible, not stable, and not affordable for tenants has little opportunity to be successful. At the same time, if it entails legal uncertainties, has low guarantees, and does not have an efficient eviction process, it is neither attractive for landlords who might prefer to
close down their properties and leave them in disrepair. This paper analyses some key legal features in the three countries with the highest proportion of rented dwellings and in five Southern European countries with low proportions of rented properties and tries to find common elements that encourage or discourage citizens from opting for renting a property instead of buying it.
Title:
Leases as an Alternative to Homeownership in Europe. Some Key Legal Aspects