Law and regulation of rental agreements in Slovenia during Covid-19

Updated on 31.03.2020.

No, unless explicitly agreed otherwise in the lease agreement. 

The lessee is eligible to temporarily close its leased space, unless otherwise agreed in the in the lease agreement.  The lessee is however not entitled to opt for rent reduction as a result of corona if it closes the premises on its own initiative, unless explicitly agreed otherwise in the lease agreement.

No, a lessee is in principle not eligible for rent reduction if its leased space is closed following a Government order as a result of corona, unless explicitly agreed otherwise in the lease agreement.

The most common form of security provided under a commercial lease agreement is a bank guarantee and a surety, whereas under residential lease a cash deposit is most common form of security.

Under Slovenian statutory law (Slovenian Obligations Code, hereinafter referred to as “OZ”), as a result of COVID-19, a lessee could request rescission of the lease agreement. However, a lease agreement would not be terminated, if the lessor offered or agreed to modify the relevant contractual terms fairly, e.g. by reducing rent, not collecting rent at all or suspending the lease agreement. In any case, a lessee is not entitled to unilaterally amend the lease agreement and unilaterally decide on reducing the rent or not paying rent at all but must obtain the consent of the lessor.

If the lessee cannot meet his contractual obligation he may further be excused from liability for damages, if he proves that he could not fulfill his obligation or that he failed to fulfill his obligations due to circumstances arising after the conclusion of the contract, which he could not foresee, prevent, could not be eliminated or avoided.