Buying and owning property
Commercial Property Management in Greece: How to Protect Yourself from Defaulting Tenants
When purchasing property in Greece, many investors ask the same question: “What happens if a tenant stops paying?”
This is a critical concern. Online discussions often claim that evicting a tenant in Greece is nearly impossible. In reality, that is a myth. The law protects both tenants and property owners. What matters most is drafting a proper lease agreement and following statutory legal procedures.
The Lease Agreement — A Landlord’s Primary Defense
Virtually all long-term lease agreements in Greece must be registered in the AADE (Independent Authority for Public Revenue) electronic portal.
A registered lease serves as the principal proof of the owner’s rights in the event of a dispute.
Before signing a lease agreement, it is recommended to:
- Verify the tenant’s identity;
- Verify their income and employment details;
- Request a security deposit (in practice, this usually equals one to two months’ rent, unless agreed otherwise).
What to Do If a Tenant Stops Paying
If a tenant defaults on rent payments, the owner cannot unilaterally change the locks, cut off utilities, or remove the tenant’s belongings. Unilateral eviction is strictly illegal.
Greek law provides a specific judicial procedure: an Order for Eviction and Recovery of Rent Arrears (Διαταγή Απόδοσης Μισθίου). This mechanism allows property owners to apply to court without enduring months of full-scale litigation, provided all legal requirements are met.
Procedure steps:
- Serving an official legal notice to the tenant.
- If rent remains unpaid, a lawyer petitions the court.
- Provided the proper procedure is followed, the court issues an eviction order and recovery of arrears.
- The order is executed by a court bailiff.
Short-Term vs. Long-Term Rentals: Different Legal Frameworks
It is essential to recognize that short-term rentals via online booking platforms and traditional long-term rentals operate under different legal frameworks.
- Long-term rentals: Regulated by general civil law provisions and the officially registered lease agreement.
- Short-term rentals: Property owners must comply with specific tax regulations, register the property in the official registry, and report income as required.
Therefore, before choosing a rental strategy, owners should assess not only prospective rental yields but also the legal nuances of each model.
Can Rental Risks Be Insured?
Yes. Many European insurance providers offer policies covering:
- Property damage;
- Public liability;
- In certain cases — loss of rental income.
However, coverage terms vary depending on the insurer and contract terms, making careful review necessary prior to signing.
How AILIT Group Can Help
Acquiring an investment property is merely the first step.
AILIT Group assists investors in selecting property, conducting legal due diligence, handling transaction management, structuring optimal rental strategies, and liaising with lawyers, accountants, and property management companies.
Our objective is to ensure your real estate generates stable income while remaining legally fully protected.
- Learn more about the company’s projects: https://ailitgroup.com/en/projects/
- Get in touch with our team: https://ailitgroup.com/en/contact/
Article reviewed by Alexey Fatuev — expert in property construction and real estate development in Greece.