What is the rental scheme? 
The Kosovo Property Agency (KPA) was established on the 4 March 2006 under UNMIK Regulation 2006/10. Among other tasks, the KPA is mandated to supervise the rental of abandoned property in Kosovo.
In this regard the Agency is managing a rental scheme for properties under its administration. This scheme makes it possible for the property right holder to receive a fixed income from the property by authorizing the KPA to rent it out until s/he decides to utilize the property in any other way.
How to join the rental scheme?
Participation in the rental scheme is voluntary and simple.
Just schedule a visit to one of the KPA offices (see the list on the back of this leaflet) and bring with you:
- your ID-card,
- your bank written instructions on how to receive payments from abroad, SWIFT (Society for Worldwide Interbank Financial Telecommunication)
- postal contact details, your mobile phone number, and preferably an e-mail address.
Without this we are not able to process the rental payments.
What is the process of receiving rent?
KPA collects rents for the month before the month starts. If the rent is not paid, the KPA evicts the tenant.
A refundable, one time deposit is also asked when the Rental Agreement is signed. The deposit covers potential unpaid rent or major damages to the property should the tenant be held responsible of. The remaining portion of the deposit is returned to the tenant when agreement ends and after property inspection.
The rent rate is fixed by the KPA on the basis of the current value of the property as stated by public authorities. The rent is therefore not negotiable neither by the landlord nor the tenant.
If landlord is able to get a higher rental for his property, he may terminate the KPA-rental at any time (see below).
Landlord may receive a rent only if there is a tenant willing to rent his property and even then, only if KPA receive the payment. Therefore the KPA is not in a position to guarantee any payments – that depends fully on the rental market of the concerned area and on the tenant behavior.
How the rent is calculated ?
KPA calculates the monthly rent based on the Property Value, as assessed by the respective Municipal Tax Department. Using the assessed Property Value the following factors will be used in order to determine the exact rent payable and they are: life time of property assessed max 80 years for residential property, monthly interest on savings assessed to average bank rate of 3.72%, reduction due to lack of landlord services (not applicable if such services are provided by the landlord). Rent is charged only for the habitable part of a property and 5 % of administrative fee is deducted by KPA to cover the administrative cost of the rental services provided to the property right holder.
The monthly rent is calculated by using the following formula:
| Price = (A:B) + (A:C) -D (+/-E) + F |
A: Municipal Property Value (this value is assessed by the Municipality and is subject to annual review )
B: Value of physical depreciation of property (life time of property assessed max 80 years for residential property)
C: Annual return on Investment (monthly interest on savings assessed to average bank rate of 3.72%)
D: 10% reduction due to lack of landlord services (not applicable if such services are provided by the landlord)
E: 25% adjustment based on current condition of property
F: 5% administrative fee
Who is the tenant?
When you ask to include your property in the Rental Scheme, you exclusively authorize KPA to find a tenant. The family already occupying the property may apply. If not, then the KPA promotes your property until a tenant is found.
How to terminate the rental agreement and depart from the KPA-scheme?
You may terminate the rental agreement at any point in time by written notification to the KPA. Upon such instruction, we will notify the current tenant and finalize the accounts. This process may take up to three months.
How much will the services provided by KPA cost?
The KPA deducts a fee from the monthly paid rental up to 5% to cover the administrative cost of the rental services provided to the property right holder. In addition, other costs related to the property (such as insurances and taxes) may be deducted in accordance with applicable laws.
Please note that there is a fee imposed by private banks for transferring money to your bank account. Within Kosovo the fees are low, however if you request the collected rent to be transferred to accounts in banks outside Kosovo, the fees may be as high as €15 per transaction.
Please note:
The KPA does not guarantee any income from your property. If the property is not rented, no income may be expected.
If the tenant does not pay then no payment will be transferred to you. If the tenant does not pay then KPA will execute an eviction on the property and attempt to allocate a new tenant who will agree to pay rent.
KPA takes no responsibility for damage to property in the event that such an eviction process occurs. If the property is rendered uninhabitable during the process KPA will return possession of the property to the property right holder.
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KPA RENTAL SCHEME 
