The lease and the deposit: what to put in writing

What the law says about the form of the lease

Armenia’s Civil Code treats renting a home as a residential lease. It must be in writing — a single document signed by both parties (Article 662).

The Code also provides that a residential lease is subject to notarisation and that the rights arising from it are subject to state registration (Articles 662 and 663). In practice, many people make do with a simple written contract. Before signing, ask a notary what formalities your case requires: that determines how well the contract will protect both sides in a dispute.

There is a tax side too. According to the State Revenue Committee, if the rights under the lease have not been registered and the owner is not registered as an individual entrepreneur, the owner must file a notice with the tax authority within 5 days of letting the apartment — in person or via e-request.am. The penalty for failing to do so is 5% of the property’s cadastral value, capped at AMD 500,000, and for a repeat violation within a year 10%, capped at AMD 1 million. Taxes are covered in more detail in the next step of the guide.

Clauses you must include

The property details are not a formality. Under the general lease rules, if the contract lacks information that identifies the property precisely, that term is deemed not agreed and the contract not concluded (Article 608).

Default rules when the contract is silent

• Rent is paid monthly (Article 671).
• The tenant pays utilities directly (Article 667).
• Routine repairs fall on the tenant, major repairs on the landlord (Article 670).
• Rent cannot be changed unilaterally (Article 671).
• If no term is stated, the lease is open-ended (Article 672).
• The tenant may end the lease at any time with three months’ written notice (Article 675).

If any of these doesn’t suit you — say, you want utilities included in the rent or to split repairs differently — spell it out in the contract. Terms agreed only verbally are worth next to nothing in a dispute.

The deposit: set it up to avoid arguments later

The Civil Code’s chapter on leases has no separate article on security deposits, so the contract decides everything. The deposit is often set at one month’s rent, but that is up to the parties. The key is to describe it so that nothing has to be guessed at move-out:

• the deposit amount and confirmation it was received — a separate clause or a receipt
• what the deposit may be used for: damage beyond normal wear and tear, unpaid rent and utilities
• the deadline for returning it after move-out, for example a few days after bills are settled
• whether the deposit may be applied to the last month’s rent
• an inventory and photos of the apartment’s condition, attached to the contract

Handing over the apartment

1. Check each other’s documents and sign the contract.
2. Draw up a handover record: meter readings, number of keys, inventory.
3. Receive the rent and deposit — by bank transfer or against a receipt.
4. Hand over the keys and the contacts of whoever services the building.

Key takeaways

• The lease must be in writing; the Civil Code provides for notarisation and state registration — check the formalities with a notary.
• If the lease isn’t registered, the owner must notify the tax authority within 5 days.
• Always cover the property, term, rent, utilities, repairs and termination.
• Deposit terms — amount, deductions, return deadline — belong in the contract.
• An inventory and a handover record with photos prevent disputes at move-out.