Renting an Apartment in Azerbaijan: Rights and Duties of Landlords and Tenants

Short answer: Residential tenancies in Azerbaijan are governed by Chapter 33 of the Civil Code (Articles 675–699). A written contract is enough between the parties, while notarisation gives the tenant stronger protection against third parties. A deposit may not exceed twice the monthly rent (Article 688.2). A tenant cannot be removed by changing the locks or cutting off utilities (Housing Code, Article 5.3). Income an individual earns from letting a dwelling to individuals is taxed at 10% (Tax Code, Article 124.1).

The contract: written form, notary and registration

Under a lease, the landlord hands over the flat for use and the tenant pays rent (Article 675). A transaction between individuals above the threshold set in the Code must be made in simple written form (Article 332.1.2). Without it, neither side may rely on witness testimony to prove the terms in a dispute (Article 333.1).

The Civil Code does not, as a general rule, require a residential lease to be notarised, but notarisation becomes mandatory if either party demands it (Article 334.3.2). According to legal commentary on the Constitutional Court's decision of 11 June 2025, a lease in simple written form creates only contractual rights between the parties. For the lease to operate as a restriction on the owner's title, it needs notarisation and, for longer terms, state registration (Article 139.1). To notarise a residential lease at ASAN service you need the title document, a register certificate, and notarised consent from the owner's spouse and from adult family members registered at the flat.

The contract should state:

• Rent: amount, due date and payment method. Unless agreed otherwise, monthly rent is due at the end of each month (Article 684.1).
• Term: fixed or indefinite (Article 689).
• Deposit: amount and conditions for its return.
• Utilities: who pays which bills.
• Handover report: the condition of the flat, an inventory, meter readings and photos.

Utilities and repairs: who pays what

Throughout the lease the landlord is responsible for keeping the flat fit for use and safe for its occupants (Article 676). If the landlord delays fixing a defect, the tenant may fix it and recover the necessary costs (Article 677.1.3). Rent is reduced for the period in which the flat's usability is impaired, and in a residential lease this cannot be waived to the tenant's detriment (Article 677.1.1).

Not using the flat is no excuse for not paying for utilities actually consumed (Housing Code, Article 137.10).

Rent increases and the deposit

The lease chapter gives the landlord no right to raise the rent unilaterally during the term. The contract is changed by agreement, normally in the same form as the original (Articles 421.1, 423.1). A landlord planning improvements must give the tenant written notice three months in advance, describing the works and any expected rent increase. The tenant may then terminate within two months (Articles 678.2.2, 678.3). If you expect increases, set out the mechanism in the contract.

The deposit may not exceed twice the monthly rent. The landlord must keep it in a bank separately from their own funds, and the interest belongs to the tenant (Article 688.2). In a residential lease, any term departing from this to the tenant's detriment is void (Article 688.3), and so is any agreement requiring the tenant to pay "key money" (Article 688.4). If the lease is not concluded through no fault of the prospective tenant, a booking fee can be reclaimed in full (Article 688.1.3).

When the lease ends, rent paid in advance must be refunded (Article 697.3). The landlord may deduct only proven damage and unpaid sums, not normal wear and tear (Article 682). Damage claims are time-barred six months after the landlord gets the flat back (Article 697.4), so the handover report is your best evidence.

Ending the lease and eviction

A fixed-term lease ends when the term expires (Article 689.1). If the tenant stays on and neither side objects within two weeks, it becomes a lease for an indefinite term (Article 693.2.1). Notice of termination must be in writing and give the reasons (Article 690).

Termination for arrears has no effect if the debt is paid within one month after the eviction claim is accepted by the court (Article 685.4.2). If termination would cause serious hardship to the tenant and their family, the tenant may object in writing, and the court decides whether the lease continues (Article 696).

Self-help eviction is prohibited. Except on the grounds and by the procedure set out in law, no one may be removed from a dwelling or have their use of it, including utilities, restricted (Housing Code, Article 5.3). If a tenant does not leave after the lease ends, the landlord may claim compensation at the usual local rent (Article 697.2) and go to court. See our guide to debt recovery through the courts.

If the flat is sold, the buyer steps into the landlord's shoes (Article 699.1). If it is sold to someone outside the landlord's family, the tenant has a pre-emption right (Article 699.3). For what a buyer should check, see our post on buying real estate in Azerbaijan.

Subletting, registration, foreign tenants and tax

Subletting. The tenant may not let the flat to a third party without the landlord's permission (Article 683.1). The tenant may ask for permission to let part of the flat, and the landlord may make it conditional on a reasonable rent increase (Article 683.2). The tenant remains liable for damage caused by the subtenant (Article 683.3).

Address registration. State in the contract whether the tenant will be registered at the address and by when they must deregister when the lease ends.

Foreign tenants. A foreigner staying in Azerbaijan for more than 15 days must be registered at their place of stay within 15 days of arrival. The application can be filed free of charge on my.gov.az by the foreigner or by the flat's owner as the "receiving party" (Migration Code, Article 21). After a change of address, the new address must be registered within 5 working days. If registration is not made, both the foreigner and the host face administrative liability. For longer stays, see our post on work and temporary residence permits.

Tax. Income from letting dwellings owned by individuals to individuals is taxed at 10% (Tax Code, Article 124.1). If the tenant is registered with the tax authority, the tenant withholds the tax at source. If not, the landlord, personally or through a tax agent, obtains a taxpayer number (VÖEN), files an income tax return by 31 March of the following year and pays the tax. The tax is charged on the rent stated in the contract. For non-residential premises the rate is 14%.

Common disputes and checklists

Most disputes concern deposits withheld "for wear and tear", rent increases agreed only orally, demands to leave without notice, unpaid utility bills and unauthorised subletting.

For tenants:

1. Check the register extract, the landlord's identity and any representative's power of attorney.
2. Sign a written contract and ask for notarisation where needed.
3. Make sure the deposit does not exceed two months' rent, and get a receipt.
4. Prepare a handover report with photos.
5. Pay rent by bank transfer and report defects in writing.

For landlords:

1. Obtain consent from your spouse and from family members registered at the flat.
2. Register a foreign tenant within 15 days.
3. Set out utilities, repairs and the rent review mechanism in the contract.
4. Keep the deposit in a separate bank account.
5. Give notices in writing with reasons, and meet your tax obligations.

Frequently asked questions

Does a lease have to be notarised?
Not as a general rule; a written contract is binding between the parties. Notarisation becomes mandatory if either party demands it (Article 334.3.2).

Can the landlord raise the rent during the term?
Only with the tenant's agreement or under a mechanism already written into the contract (Article 421.1).

Can I change the locks if the tenant stops paying?
No. Eviction and restricting utilities are only possible by the procedure set by law (Housing Code, Article 5.3). Terminate the lease in writing and go to court.

How large can the deposit be?
No more than twice the monthly rent, and the interest belongs to the tenant (Article 688.2).

If the flat is sold, does the tenant have to leave?
No. The new owner takes the landlord's place (Article 699.1).

Who registers a foreign tenant?
The flat's owner or the foreigner, on my.gov.az within 15 days of arrival.

How we can help

Affidacons assists landlords and tenants with drafting and reviewing residential leases, disputes over deposits, rent arrears and termination, formal notices, and court representation in eviction cases. For details, see our litigation and legal representation service or contact us.

This article is general information and does not constitute legal advice. It is based on the Civil Code of the Republic of Azerbaijan (Articles 139.1, 332–334, 421–423, 675–699), the Housing Code (Articles 5.3, 29.3, 135–137), the Tax Code (Article 124.1) and the Migration Code (Article 21) (November 2026); legislation may change. Obtain advice on your specific circumstances before acting.