The ongoing rise in rental prices—even amid a slowdown in the residential property market—has brought renewed attention to a key question for both tenants and landlords: when can a landlord legally raise the rent, and when does a tenant have the right to refuse?
When Is a Rent Increase Legally Permitted?
A rent adjustment may be made in three ways:
- If the lease agreement includes a clause for rent review;
- If the landlord and tenant mutually agree on a new rent amount during the tenancy;
- After the mandatory three-year minimum lease term has ended—allowing for renegotiation of the rent at market terms.
When Is a Rent Increase Not Allowed?
During the mandatory three-year period, landlords cannot unilaterally increase the rent—unless the lease includes a formal rent review clause or the tenant consents to a new amount.
Common Types of Rent Review Clauses
Lease agreements often include one of the following mechanisms:
- A fixed annual percentage increase (e.g., 2%–3% of the previous year’s rent);
- Tying adjustments to the Hellenic Statistical Authority’s Consumer Price Index (CPI);
- A hybrid approach combining both methods.
What Happens After the Three-Year Term?
Greek law sets a minimum lease duration of three years for residential rentals—even if the contract specifies a shorter period. Once this term ends, there is no statutory cap on rent increases. The new rent is determined freely through mutual agreement between landlord and tenant.
If no agreement is reached, the landlord may request the property’s return.