The improper use of leased property by the tenant—such as negligence, unauthorized alteration of the premises, or use contrary to the lease agreement—may cause substantial damage or even destruction to the property. In such cases, the landlord retains the right to seek full compensation for any actual or consequential damage suffered. This matter is governed by the principles of the law of obligations, depending on the factual circumstances of each case.
Legal Framework for Compensation: Establishing a Claim Based on Improper Use of the Leased Property
The claim for compensation in cases of improper use of the leased property is grounded in the general framework of tort liability. To establish such a claim, the following legal requirements must be met:
- Harmful conduct: This refers to an act or omission by the tenant that caused material damage to the leased property.
- Illegality: The conduct is contrary to the law or to the terms of the lease agreement.
- Fault: There must be intent or negligence on the part of the tenant.
- Damage: The landlord must have suffered actual material loss.
- Causal link: A causal connection must be proven between the tenant’s conduct and the damage incurred.
If the damage is exclusively attributable to the actions or omissions of the landlord, no claim for compensation can be established. In cases of contributory negligence by both parties, the compensation may be proportionally reduced.
It is noteworthy that illegal conduct may consist not only of active behavior but also of omissions, where the tenant was legally or contractually obliged to act. This includes duties arising from good faith and commercial practices.
Thorough documentation of the damage and systematic substantiation of each element of liability are critical factors for the successful pursuit of compensation in court.
Tenant’s Obligations and Liability for Damage
The tenant is required to use the leased property with due care, in accordance with the terms of the lease agreement, and to return it in the condition in which it was received. These obligations stem from both contractual and general obligations law and are essential for protecting the landlord’s property.
Key tenant obligations include:
- Avoiding any unauthorized intervention or modification of the premises without the landlord’s written consent.
- Using the premises in accordance with the purpose expressly or implicitly agreed upon in the lease.
- Refraining from causing damage that exceeds normal wear and tear resulting from regular use.
Violation of these obligations due to fault (intent or negligence) entails legal liability for the tenant. This liability may be:
- Contractual, when the obligation to return the property in good condition is breached.
- Tortious, based on the general principle that no one is permitted to cause damage to another through fault, even in the absence of an active contractual relationship between the parties.
In particular, in cases of serious damage—such as destruction, removal of equipment, or permanent damage to the premises—the landlord is entitled to seek compensation not only for the value of the damage but also for the total cost of full restoration or replacement of the affected elements.
The existence of documented evidence, the sound drafting of the lease agreement, and timely legal advice significantly strengthen the landlord’s position both extrajudicially and in legal proceedings.
Agreed Use of the Property and the Principle of Good Faith
The concept of “agreed use” is a fundamental term in every lease agreement and defines how the tenant is permitted to use the property. This use may be explicitly stated in the agreement or inferred from the circumstances.
Specifically, “agreed use” refers to:
- The use that corresponds to the functional and commercial purposes of the contracting parties.
- The use inferred from the nature and intended purpose of the leased property (e.g., commercial premises, residence).
- The use supplemented and interpreted in light of good faith and commercial customs, especially when the lease terms are vague or incomplete.
The provisions of Articles 591, 592, and 599 para. 1 of the Greek Civil Code, which govern these matters, are of a dispositive nature, meaning they can be modified by contrary agreement between the parties (Article 361 of the Civil Code).
A precise understanding of what constitutes “permitted use” is crucial for both preventing disputes and establishing compensation claims in cases of improper use by the tenant.
Proving Damage and Filing a Compensation Claim
The landlord has the right to claim compensation for wear and damage caused by the tenant during or after the lease term. The compensation claim may be filed before, during, or after the termination of the lease agreement (see Supreme Court Judgment No. 1413/2008).
To properly file a claim and meet the specificity requirements under the Greek Code of Civil Procedure (Articles 118 para. 4 and 216 para. 1), the landlord must allege:
- A specific description of the damage or alterations to the property.
- An assessment of the amount of damage in a specific and documented manner.
It is not necessary for the landlord to prove the initial condition of the property (Supreme Court Judgment No. 938/2018). The burden of proof shifts to the tenant, who must demonstrate that:
- The damage resulted from agreed and ordinary use,
- He/she bears no responsibility for the damage,
- Or that the damage was caused by force majeure (Supreme Court Judgment No. 302/2021).
Detailed reasoning, photographic documentation, and expert reports can decisively strengthen the landlord’s legal position and increase the likelihood of success in court.
Tenant’s Liability for Damage Caused by Third Parties
The tenant bears full legal liability even for damage caused by third parties to whom use or possession of the property has been granted, such as:
- Subtenants,
- Employees, collaborators, or other auxiliary persons.
This liability may arise either from the lease agreement or from the general tort provisions, depending on the nature of the act and the specific facts. If the third parties cause damage that meets the conditions for tort liability, they may be held jointly and severally liable together with the tenant towards the landlord (Supreme Court Judgment No. 1807/2017).
This regulation enhances the legal protection of the landlord by ensuring that liability is not limited only to the tenant bound by contract, but extends to any person acting on their behalf or benefiting from the use of the property.
Cumulative Liability – Concurrent Basis in Contract and Tort
The tenant’s liability for compensation may be based on both the lease agreement and the general provisions on torts, provided the harmful event concerns the same act and the same object. This “cumulative liability” does not constitute double compensation but offers the landlord alternative legal grounds to claim restitution.
Satisfaction of the claim under one legal basis (e.g., contractual liability for returning the property in good condition) extinguishes the other (e.g., tort liability for causing damage), unless additional monetary satisfaction is sought for moral damages. In such a case, the claim for moral damages retains its autonomous character and may be pursued cumulatively.
The choice of the appropriate legal basis depends on the nature of the damage, the available evidence, and the plaintiff’s legal strategy, especially when faster restitution of the damage or a stronger negotiating position against the tenant is sought.
Karpouzis – Lianou & Associates Law Firm has extensive experience and expertise in lease law and in representing landlords in claims for compensation due to damage or improper use of leased properties. We provide legal support with responsibility, documentation, and strategic approach, both extrajudicially and before the courts.
Contact us for personalized legal guidance and reliable representation. Defending your interests is our top priority.
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