Managing a rental flat in Prague when you live abroad

Letting a flat in Prague from hundreds of kilometres away is possible, but only with clear rules and a reliable property manager. Here is an overview of what property management involves, what it costs and how to choose a manager.

If you live abroad and own a flat in Prague, a professional rental management service will handle tenant selection and screening, the tenancy agreement, the handover of the flat, maintenance, communication with the owners' association and the annual service charge statement on your behalf. You usually pay for it either as a percentage of the monthly rent or as a fixed fee, and in return you gain time, legal certainty and a clear view of what is happening with your property. The key is to choose a manager with a clear contract, a transparent price list and regular reporting.

Why managing a let yourself from abroad often fails

Letting a flat is not a one-off transaction but a relationship that runs for years and calls for quick responses. If the tenant's boiler stops working in January, or the washing machine leaks into the flat below, an email sent from another time zone will not help. A landlord at a distance also often cannot attend viewings in person, has no local tradespeople to call on and finds it difficult to check whether the tenant is looking after the flat properly.

The second difficulty is deadlines. Czech rules on residential tenancies, service charge statements and taxes have fixed deadlines, and missing them can cost money – for example, the statutory penalty for a late service charge statement. Under Section 13 of Act No. 67/2013 Coll., an agreed penalty may not exceed CZK 50 for each day or part of a day of delay, and where nothing has been agreed it is exactly CZK 50 per day. The third problem tends to be language and familiarity with local practice, whether in dealing with the building manager or with the wording of the tenancy agreement.

What full property management includes

The scope varies from one manager to another, so always ask for a precise description of what is included in the price. Full management usually covers the following:

setting a market rent, preparing the flat and advertising it, including photographs
viewings with prospective tenants, screening them and recommending a tenant
preparing the tenancy agreement, collecting the deposit and handing over the flat with a written inventory report
monitoring payments of rent and service charge advances, sending reminders and dealing with arrears
minor maintenance, arranging tradespeople and handling emergencies
communication with the owners' association (společenství vlastníků jednotek) and energy suppliers
the tenant's annual service charge statement and supporting documents for your tax return
ending the tenancy, taking the flat back and settling the deposit

A narrower option is limited to finding a tenant and signing the agreement. For an owner living abroad, however, ongoing management is the most valuable, because most of the work only begins once the tenant has moved in.

Selecting and screening tenants

A reliable tenant is the foundation for preventing problems later on. The manager should verify the applicant's identity, income or employment and, in the case of a corporate let, the existence and payment record of the company. It is standard practice to check publicly available debtor registers and the insolvency register, and to obtain a reference from the previous landlord. For foreign nationals, it is also advisable to check that their residence permit is valid for the length of the tenancy.

Ask the manager to introduce the recommended tenant to you before signing and to explain why they have chosen them. The decision should remain yours; the manager prepares the supporting information and is responsible for its completeness.

Deposits, inventory reports and insurance

The security, in practice the deposit (jistota, commonly called kauce), is governed by Section 2254 of the Civil Code. Together with any contractual penalty, it may not exceed three times the monthly rent; any higher amount is disregarded, even if the tenant agreed to it. When the tenancy ends, the landlord returns the deposit including interest and may offset against it anything the tenant owes under the tenancy, such as unpaid rent or compensation for damage beyond normal wear and tear.

To be able to prove damage, you need a detailed inventory report (předávací protokol). It should include meter readings, a list of furnishings, a description of the condition of each room and dated photographs. The same report is completed when the flat is returned, and the differences are compared. A manager on the spot thus does for you what you would otherwise have to deal with by travelling in person.

Buildings insurance is taken out by the owner, or arranged for the whole building by the owners' association. It is worth checking whether it also covers the flat's furnishings and the landlord's liability. It is reasonable to require the tenant to have contents and personal liability insurance, which covers, for example, damage caused to neighbours by a water leak.

Maintenance, emergencies and communication with the owners' association

The law distinguishes between minor repairs and routine maintenance, which are paid for by the tenant, and other repairs, which are the landlord's responsibility. In your contract with the manager, set a limit up to which the manager may commission repairs without your consent, and agree how larger expenses are to be approved. For emergencies, what matters is that the manager can be reached outside office hours and has a network of trusted tradespeople who can come quickly.

A flat in a building with an owners' association brings further obligations: paying contributions to the repair fund, attending general meetings, voting on investments and observing the house rules. Under a power of attorney, the manager can represent you at meetings, pass on the minutes and alert you to planned building works that will affect the let or your costs.

Regular reports, service charge statements and taxes

A professional manager should send you a regular statement – usually monthly – of payments received, expenses incurred and outstanding tasks. Photographs from periodic inspections of the flat are also good practice, where the contract allows for them.

Service charge statements are governed by Act No. 67/2013 Coll. The service provider must deliver the statement to the tenant no later than 4 months after the end of the billing period, which may last no more than 12 months. Within 30 days of delivery, the tenant may ask to see the supporting documents and, within the same period, raise objections. The financial settlement – that is, payment of any shortfall or refund of any overpayment – must take place no later than 4 months after the statement is delivered. The manager's statement builds on the one the owners' association sends to the owner.

Income from letting property in the Czech Republic is taxed in the Czech Republic even if you are not a Czech tax resident. It is classed as income under Section 9 of the Income Tax Act; instead of actual expenses, you can claim a flat-rate allowance of 30%, up to a maximum of CZK 600,000 a year. Personal income tax is 15%, rising to 23% for high tax bases. A non-resident can always claim the basic personal tax credit, but other credits and deductions only under special conditions – among others, if they are resident in an EU or EEA state and at least 90% of their income comes from the Czech Republic. The return for 2025 could be filed on paper by 1 April 2026, electronically by 4 May 2026 and, when represented by a tax adviser under a power of attorney lodged within the standard deadline, as late as 1 July 2026. Check the deadlines for subsequent years on the Financial Administration (Finanční správa) website. How the Czech tax is treated in your country of residence is determined by the relevant double taxation treaty.

Do not forget the real estate tax (daň z nemovitých věcí) either. The return is generally filed by 31 January, but only when there has been a change, for example in the year after you buy the flat. Tax of up to CZK 5,000 is due by 31 May; a higher amount can be paid in two instalments, by 31 May and 30 November. The manager does not deal with tax matters itself, but should supply the documents your tax adviser needs in good time. Always check the rules for your specific situation with a tax adviser, and contractual questions with a lawyer.

What management costs and how to choose a manager

The fee is usually calculated as a percentage of the monthly rent, less often as a fixed monthly or annual charge. Finding a tenant is normally charged separately, often as a multiple of the monthly rent. Some firms offer what is known as guaranteed rent, where for a higher percentage they take on the risk of a non-paying tenant or an empty flat. So compare not only the rate, but also what is included and what costs extra – for example, call-outs by a technician, representation at owners' association meetings or service charge statements.

When choosing a manager, focus on these questions:

Does the manager have a clear contract describing the services, the limit for repairs commissioned independently and the notice period?
Are rent and deposits kept in a separate account, and how quickly is money transferred to the owner?
How often, and in what form, will you receive reports and photographs?
Who exactly will be your contact person, and how can they be reached in an emergency?
Does the manager have professional indemnity insurance?
Does the manager know the market segment your flat belongs to, and can they reach suitable tenants?

Frequently asked questions

Do I need to come to Prague in person to let my flat? Not if the management is well set up. The tenancy agreement can be signed remotely or by a representative under a power of attorney, and the manager will handle viewings and the handover of the flat. Make sure the power of attorney clearly defines its scope.

Can the manager take a higher deposit if the tenant is a foreign national with no history in the Czech Republic? No. The deposit together with any contractual penalty may not exceed three times the monthly rent, regardless of who the tenant is. Higher risk can be addressed through more thorough screening, a guarantor or insurance.

Who files the tax return on rental income – me or the manager? You, as the owner, are the taxpayer, even if you live abroad. The manager will provide a statement of income and expenses, but you file the return yourself or through a tax adviser; if you are represented by one, the deadline is extended, provided the statutory conditions are met. Check the procedure for your own case with a tax adviser.

DALILE LIVING can help you with selecting a tenant, preparing the contractual documentation and the ongoing care of your property. We would be glad to discuss with you what scope of management suits your flat and your plans.