Montenegro is preparing a dedicated Law on Residential Leasing that would establish more specific rules for rental agreements, deposits and relations between landlords and tenants. The Spatial Planning Ministry has launched public consultations, while preparation of the draft legislation is planned for 2027.
The proposed law is expected to cover rental contracts, security deposits, rent increases, maintenance responsibilities, contract termination, and the rights and obligations of landlords and tenants. Residential leasing in Montenegro is currently regulated largely through general contract law, meaning that many aspects of landlord-tenant relations do not fall under a specialised legal framework. The issue has become more significant as property prices continue to rise, encouraging more households to rely on rented accommodation.
For property investors, a dedicated leasing framework could establish clearer legal requirements concerning contracts, deposits and rent adjustments. Professional landlords and rental-property developers would have a defined framework for contract enforcement.
Tenants could receive more predictable protection concerning rent changes, deposits and maintenance disputes. The reform could also contribute to greater formalisation of the residential rental market, where a significant share of transactions has traditionally been conducted with limited documentation. Increased formalisation would have implications for tax collection and property-market transparency The legislation remains at an early stage. No final limits have been established for rent increases, deposit amounts or notice periods.
The eventual provisions on those issues will determine the extent of the regulatory changes affecting Montenegro’s rental market. The proposed legislation comes as housing affordability becomes a larger issue and regulation expands beyond construction and property transactions to the operation of the residential rental market.
