Accommodation and accommodation contract

Quick overview

• An accommodation contract is regulated by the Civil Code and deals with short-term accommodation – typically a hotel, guesthouse or Airbnb.
• The host must provide functional and safe accommodation, the guest must follow the rules and pay the price.
• The most common problems arise from property damage, early termination or poorly set conditions.

If you’re not sure how to set up the contract correctly or need to tailor it, it’s worth having it checked by a solicitor – mistakes in a contract often only become apparent in a dispute.

How accommodation is defined by law

Accommodation, or a temporary tenancy, is created by an accommodation contract. It creates an obligation on the landlord to provide temporary accommodation to the occupant for a set period of time in a facility designed for accommodation purposes. In turn, the lodger agrees to pay a predetermined amount for the accommodation and other services offered. The guest therefore acquires the right to use the accommodation and other services of the accommodation establishment. However, he/she shall not have the right to interfere in any way with the facilities and premises of the accommodation.

Accommodation is classified into 4 categories:

1. Hotel. These rooms must be equipped with everything needed for temporary accommodation and the hotel must also provide adequate services.
2. Motel: A motel is subject to virtually the same requirements as a hotel. However, a motel is primarily for motorists. Therefore, motels are usually located along major roadways and tend to have ample parking.
3. Guesthouse: A guesthouse is an accommodation establishment with a minimum of 5 guest rooms. Compared to a hotel, it has more limited social and ancillary services, but the accommodation services are comparable to a hotel.
4. Other accommodation: This includes e.g. student halls, hostels, dormitories, campsites, etc.

Obligations of the accommodation provider

As a landlord, you have obligations firstly to the resident and secondly to the state.

Obligations to the guest

The landlord must allow the resident to use the premises that are reserved for accommodation. You must therefore give the guest access to and use of the room. The room must be in a condition that allows you to use it. It should therefore meet certain hygiene standards and have at least the standard facilities of a bed, bedside table, wardrobe, mirror and a fitted bathroom and toilet. Similarly, you must allow the guest to use common areas (such as shared bathrooms, common rooms or a common garden) and services that come with the accommodation.

The accommodation provider should also offer storage services for valuables – for example, electronics, money or jewellery. However, you can refuse this if the items are dangerous or if they are of too high a value. So if a resident wants to keep, say, a diamond the size of a small child or a gold bar, you can refuse.

Obligations to the state

If you want to become a landlord, you don’t need to get any licenses or training. This is called a “free trade”. To get this trade, you just need to register with the trade office. However, if you would like to add a hotel restaurant, for example, you will already need a trade licence for hospitality. For this you will already need a professional qualification and other special permits. Another option is to set up a limited liability company or a public limited company.

In practice, we often see that innkeepers underestimate the responsibility for guests’ belongings. For example, in one of our cases, a client dealt with electronics being stolen from his room and, because he did not have the correct custody arrangements in place, he was held liable for the damage.

Other obligations relate to taxes and fees. You will have to pay taxes annually as a business or legal entity. Depending on where you are staying, you will also have to pay local taxes on your stay and keep records of your guests.

If the rooms are equipped with a TV or radio, you will also have to pay concession fees or TV and radio fees. These are registered with Czech Television, where you pay 135 crowns per month for one receiver (one TV), and Czech Radio, where the fees are 45 crowns per month for one receiver. You will also have to pay royalties to the Copyright Protection Association (OSA). But first you will have to conclude a licence agreement with the OSA. The amount of the fees then depends on the accommodation capacity and the number of receivers.

Finally, you are obliged to report your foreign guests to the police within 3 days of their arrival. In addition, you are also obliged to keep a house book with information about your foreign guests and the time of their stay. This book must be kept for at least 6 years from the last entry.

Obligations of the guest

The host also has certain obligations towards the accommodation provider. As a guest, you are legally obliged to use the accommodation and services of the accommodation properly. Furthermore, you must not make any substantial changes to your accommodation.

However, there may be other obligations in the accommodation contract. For example, the landlord may set a night-time quiet time that the guest must observe. Often, the rules also apply to visitors to the accommodation. These may be completely forbidden or only allowed, for example, at certain times of the day or by prior agreement with the landlord.

Smoking, the use of narcotics or the possession of weapons or other dangerous objects may also be prohibited in the accommodation. You are also usually not allowed to use your own appliances in the accommodation (for example, a double boiler for making an omelette in the morning). Unless permitted, you must not bring pets into the property.

Last but not least, you are required to leave the property at the end of your stay and return your room in good condition – i.e. free of all your personal belongings, free of excessive clutter and undamaged. Otherwise, the landlord has the right to evict you at your expense.

Accommodation contract

The accommodation contract or temporary tenancy agreement should first of all specify what it covers – i.e. what accommodation it covers and for how long. It should set out the amount the lodger will have to pay for the accommodation, including the method and timing of payment. Where applicable, any additional amounts to be paid, for example for additional services. In addition, the specific rules of the accommodation should also be part of the contract. And overall, the contract should set out well the rights and obligations of both parties.

If you are unsure of the wording, we can tailor-make a contract for you or review an existing one.

Termination of the accommodation contract

The accommodation contract can be terminated early and immediately by the landlord if the resident is in gross breach of the obligations in the accommodation contract or good morals. However, a warning is required first.

The accommodation provider may also terminate the contract early. However, if the landlord proves that the early termination of the contract has caused him damage which he could not have reversed, he is entitled to compensation from the landlord.

The most common mistake is for the landlord to terminate the contract without notice. However, the court may insist that the guest be given a chance to correct his or her behaviour or the termination may be invalid.

Checklist

• identification of the landlord and guest
• the exact purpose of the accommodation
• the length of stay
• the price and terms of payment
• rules of use
• cancellation policy
• liability for damages

Why a downloadable accommodation contract template is not worthwhile

The contract templates you can find for free download on the internet are often outdated and full of errors. In addition, each case is specific and this specificity needs to be correctly recorded in the accommodation contract, which a generic model contract will not provide.

An incorrectly drafted contract can lead to its invalidity. For this reason, the best solution is to have a professional draw up the contract. If you contact us, you will get a flawlessly drafted contract and you will also get everything sorted out quickly and from the comfort of your own home.

In practice, we often deal with cases where a poorly drafted template has led to a loss of claim – yet checking the contract costs a fraction of these losses. For example, the downloaded template did not contain key provisions (e.g. liability for damages or cancellation terms).
These errors then led to disputes that went against the landlord.

Summary

An accommodation contract is a specific type of contract under the Civil Code that regulates short-term accommodation. The key is to correctly set the rights and obligations of both parties, especially liability for damages, rules of stay and termination conditions. The biggest risks arise when using universal model contracts that do not reflect the specific situation. If you want to avoid disputes and financial losses, it pays to have a contract prepared or checked by a professional.