Managing a Budapest property from abroad

Letting through an agency or a property manager

An owner who lives abroad can delegate long-term letting in two ways. A letting agency finds the tenant: it advertises, arranges viewings, screens applicants, prepares the lease and the handover, and then steps out. A property manager (ingatlankezelő) does the same and then runs the tenancy month by month.

Price lists published in Budapest in 2025 and 2026 show:

• tenant finding: often one month's rent, charged when the lease is signed ^[1][2][3];
• ongoing management: typically 8% to 15% of the monthly rent, sometimes a flat HUF 20,000 to 40,000 a month; check whether prices include VAT ^[1][2][3][4];
• maintenance work is often billed separately ^[4].

Some managers charge the management fee only for months when the flat is let ^[1]. The choice mainly depends on how available the owner is: with nobody on site, an agency alone leaves breakdowns, meter readings and contact with the building unanswered.

What a property manager does, and what to put in the mandate

A Budapest property manager's usual tasks are ^[1][2]:

• rent valuation, photos, listings, viewings;
• checking applicants' financial and employment situation;
• drafting the lease, the handover report and the inventory, and arranging the notarial deed;
• collecting rent and sending the owner a monthly statement;
• staying in contact with the tenant, organising minor and urgent repairs, and inspecting the flat.

The mandate should be in writing. It states what the manager may sign on the owner's behalf (lease, utility contracts, votes at the condominium's general meeting), how much repair work the manager may order without prior approval, how often the owner receives reports, how the deposit is held, and the notice period for ending the mandate. A separate power of attorney, certified where needed, makes dealings with utility companies and the building easier.

The building: közös képviselő, common charges and house rules

Most Budapest flats are part of a társasház (condominium), governed by Act CXXXIII of 2003 ^[5].

• The alapító okirat (founding deed) lists the separately owned units, each owner's share of the common parts and the common parts themselves; it is registered in the land register ^[5].
• The SZMSZ (szervezeti-működési szabályzat, organisational and operating rules) sets out the bodies, cost-sharing rules, the renovation fund and the manager's duties; it is adopted by a simple majority of ownership shares ^[5].
• The közös képviselő (common representative, the building manager), or in larger buildings an intézőbizottság (management board), carries out decisions, maintains the building, collects contributions and pursues arrears ^[5]. Anyone doing this work as a business needs a qualification and registration ^[5].
• The közös költség (common charges) is shared by ownership share unless the SZMSZ provides otherwise; the SZMSZ also covers unmetered utilities ^[5].
• The general meeting is held at least once a year and approves the accounts and budget by 31 May at the latest ^[5].

The common charges remain the owner's debt even if the lease passes them to the tenant. If arrears reach at least three months' charges, the general meeting can order a mortgage on the flat ^[5]. In practice: give the közös képviselő an email address, set up a standing order, request the SZMSZ and the house rules to hand to the tenant, and give someone a written proxy for general meetings.

Utilities and home insurance

Household electricity and gas are supplied by companies of the state-owned MVM group; water, sewerage, waste and, where present, district heating are billed by the Budapest utility operators or included in the common charges. Household energy is sold at a regulated price up to an average consumption level and at a higher price above it; check the current thresholds with the supplier. Before letting:

• record all meter readings (water, gas, electricity) in the handover report ^[12];
• decide whether the contracts stay in the owner's name, with the tenant reimbursing the bills, or are transferred to the tenant; in the first case the owner remains liable for unpaid bills;
• note that for tax purposes, utilities passed on to the tenant on the basis of metered consumption are not income, whereas flat-rate charges and common charges paid by the tenant are ^[9][12].

A lakásbiztosítás (home insurance) usually combines cover for the flat, cover for contents and third-party liability, for example for water leaking into the flat below. For a let flat, check that the policy allows letting, that contents cover only the owner's belongings, that liability cover includes damage to neighbours, and how the policy fits with the building's own insurance, which the közös képviselő can describe. Tenants can insure their own belongings separately.

The lease, the deposit and tenant registration

The basic rules for a privately owned flat let long term are:

1. Written form. A residential lease is valid only in writing ^[6]. It should state the parties, the property, the rent and due date, how utilities and common charges are shared, the deposit, the term and termination, and the date and method of handover ^[12].
2. Rent. It is set freely in the contract and paid in the amount and on the date agreed ^[6].
3. Notice. Either party can end an open-ended lease by notice given by the 15th of a month, effective on the last day of the following month, unless agreed otherwise; a fixed-term lease cannot be ended by ordinary notice unless the contract allows it ^[7].
4. Non-payment. The landlord first sends a written demand with a deadline; if the tenant still does not pay, the landlord may terminate ^[7][12]. Changing the locks, cutting utilities or evicting the tenant oneself is unlawful ^[12].
5. Deposit. It is usually two to three months' rent ^[12][13]. Under section 6:343 of the Civil Code (Ptk.), the tenant can ask a court to reduce an excessive security; commentary treats a deposit above three months' rent as excessive ^[8]. While it is refundable, the deposit is not taxable income ^[12].
6. Notarial deed. A közjegyzői okirat (notarial deed) in which the tenant undertakes to move out at the end of the lease allows direct enforcement without a lengthy lawsuit ^[12].
7. Tenant registration. If the tenant wants to register the address, the owner signs a befogadó nyilatkozat (consent to accommodate) ^[13].

Reporting rental income

For a private individual, income from long-term residential letting is subject to 15% Hungarian personal income tax (szja) ^[9]. There are two methods to choose from ^[9][11]:

• 10% flat allowance: 90% of revenue is taxable, with no receipts needed, but no other costs can be deducted;
• itemised costs: deduction of documented expenses such as maintenance and renovation, condominium charges paid by the owner, and depreciation of the building.

According to tax advisers, no social contribution tax (szocho) is due on this income ^[10]. Revenue includes the rent and amounts the tenant reimburses, such as common charges, contributions to the renovation fund or building insurance ^[9].

Timing:

• a quarterly tax advance by the 12th of the month after each quarter; if the tenant is a company, it withholds and pays the advance ^[9];
• the annual return: for 2025 income, the deadline was 20 May 2026 ^[14].

Residential letting is VAT-exempt: no invoice is needed, an accounting document is enough, and a private individual generally needs only an adóazonosító jel (tax identification number) ^[9]. A non-resident owner should check with an adviser how the tax treaty between Hungary and their country of residence applies. Short-term letting follows different rules; see the separate resource on that topic.

Frequently asked questions