Damage to leased property — usually discovered after the tenant has vacated the premises — is a frequent issue faced by property owners. Regardless of whether such damage was caused intentionally or negligently by the tenant, or whether it occurred during the lease period or after its termination, a claim for compensation arises in favor of the landlord against the tenant or any third parties who caused the damage.
The limitation period for the landlord’s compensation claim against the tenant is divided into three categories, as, under Greek lease legislation, the limitation may be six months, five years, or twenty years, depending on the nature of the claim.
1) Six-Month Limitation Period:
When the damage or alteration affects the physical condition of the leased property, including its fixtures (i.e., installations that cannot be separated from the leased property) and appurtenances (e.g., movable items leased together with the main property, such as appliances), even if such damage stems from a tort, the landlord’s compensation claim is subject to a six-month limitation period according to Article 602 of the Civil Code.
This provision applies to both residential and commercial leases.
2) Five-Year Limitation Period:
- a) If the damage to the property was caused by a third party, such as someone assisting the tenant in fulfilling their obligations (e.g., a cohabitant), this person is liable for damages under the legal framework of tort liability, and thus the landlord’s claim against the third party is subject to a five-year limitation period under Article 937 of the Civil Code.
- b) If the compensation claim relates to the removal or retention of a movable asset or movable items leased along with the property, the limitation is also five years, based on Article 937 Civil Code.
3) Twenty-Year Limitation Period:
- a) If the compensation claim arises from a breach of contractual obligation under the lease agreement.
- b) If the leased property is completely destroyed, making its return impossible (pursuant to Article 249 of the Civil Code).
- c) If the tenant acknowledges the debt, even by means of a general or abstract debt acknowledgment.
