Montenegro Starts Work on Its First Apartment Rental Law: Consultation Closed, Not Yet Adopted

Residential apartment buildings on a quiet street in Tivat

Table of Contents hide

1. What has happened so far

2. Current rules and what may change

3. Proposals received in the consultation

4. Timeline

5. Who is affected

6. What to watch next

7. Frequently asked questions

7.1. Is there a rental law in force now?

7.2. Is rent capped at 5% a year?

7.3. When will the law apply?

7.4. Do existing leases change?

7.5. Who is writing the draft?

8. Official sources

Montenegro has started drafting its first Law on apartment rental, a bill that does not yet exist. The Ministry of Spatial Planning, Urbanism and State Property closed its public consultation on 14 October 2026 and published the report on 16 October. No rules on deposits, rent increases or notice periods have been decided, and nothing changes for current leases. Information is current as of 23 October 2026.

Status: pre-draft stage, not adopted. There is no bill text, no adoption date and no application date. Ideas listed below come from an association, citizens and an agent who took part in the consultation. They are not the position of the Government.

What has happened so far

Residential buildings along the waterfront in Tivat

The ministry published an initial public call on 29 September 2026 for a future Law on apartment rental (Zakon o zakupu stanova). Comments were accepted for 15 days, until 14 October. The consultation report appeared on gov.me on 16 October 2026. A working group is to prepare the draft. On 15 October the ministry announced that its call for a non-governmental organisation representative in that group received no candidates.

The work is linked to the Housing Policy Strategy to 2034. The ministry has said it will study the experience of other countries and the likely impact of the law before deciding on the content.

Current rules and what may change

Question	Now	After the law (if adopted)
Legal basis for long-term residential leases	Mainly the general Law on Obligations	A dedicated rental law is being prepared; its content is not decided
Cap on rent increases	None because of this process	Not decided
Deposit rules	None because of this process	Not decided
Notice periods	No change	Not decided
Adoption or application date	None	The ministry says it is too early to name one

Proposals received in the consultation

Residential apartment buildings in Podgorica on a clear morning

The report lists suggestions from several participants. They are ideas for the working group to consider.

Who proposed	Main ideas
Tenant association Moj Dom (23 points)	Mandatory written or electronic lease; electronic register of leases; separation of long-term and tourist leasing; protection against arbitrary eviction, including lock changes and utility cut-offs; minimum notice periods; advance notice of rent increases without a price freeze; a statutory cap on the deposit and rules for its return; a split of maintenance costs; reporting of contracts to the tax system; rent subsidies and public affordable rental
A private citizen	Limit annual rent growth to 5%
A private proposer on short-term rental	Rules for short stays in residential buildings: 1 to 30 nights as short-term, 31 to 89 nights as a lease only with a written contract and stated purpose, 90 nights or more presumed to be a lease; consent of two thirds of co-owners and adjacent owners; a higher maintenance fee per square metre
A real estate agent	Mandatory written form with minimum contents; a payment reminder 8 days before termination; a deposit different from the last month’s rent; settlement of the deposit and return of the undisputed part within 15 days; a handover protocol with photos; an agency fee on extensions only if the contract provides for it; a separate management fee

Each of these is a proposal only. The 5% cap, the 8-day reminder and the 15-day deposit return are not current rules.

Timeline

Date	Event
29 September 2026	Initial public call published on the ministry site and the e-uprava portal
14 October 2026	Deadline for comments (15 days)
15 October 2026	Notice that no NGO candidates applied for the working group
16 October 2026	Consultation report published on gov.me
2027	Draft law planned, followed by public debate and the legislative procedure, according to a media report quoting the ministry. The gov.me report does not state this.

Who is affected

Landlords, including foreign owners letting flats long term: may face new requirements on contracts, deposits and notice in future.
Tenants, including expatriates: current protection comes from the Law on Obligations; nothing is added yet.
Agencies and building managers: several proposals concern fees and handover procedures.
Short-term and tourist rentals: discussed in two proposals; whether the law will cover them is not decided.

What to watch next

The composition of the working group and its timetable, which were not found in the sources reviewed.
Publication of a draft law (nacrt) on the ministry page and the e-uprava portal, which would open a new public debate.
Whether the draft addresses the points raised in the report, in particular written leases, deposits, notice and short-term letting.
Any statement on how the law would apply to leases signed before it takes effect. None exists at this stage.

Reports that the law will apply from Montenegro’s accession to the European Union could not be verified and are not used here.

Frequently asked questions

Is there a rental law in force now?

There is no dedicated law. Long-term residential leases are governed mainly by the general Law on Obligations.

Is rent capped at 5% a year?

No. A 5% limit was suggested by one citizen. It is not a government proposal or a rule.

When will the law apply?

No date is set. The ministry says it is too early to say.

Do existing leases change?

No. The process has not changed any current contract or obligation.

Who is writing the draft?

A working group of the ministry. Its membership and deadline were not found in the sources reviewed.

Official sources

Checked on 23 October 2026. This article is general information, not legal or tax advice. Rules may change; confirm the current position with the competent authority and a lawyer before signing or changing a lease.