Landlord guide

What to do when a tenant does not pay rent in Lithuania

First remind the tenant, then demand payment in writing by a set date. The law allows 5% annual interest on late rent, and late fees only if the lease sets them. If the tenant has not paid for at least three months, the lease can be ended, but only through a court.

· Written by the AxiRent team

When is rent due?

Unless the lease says otherwise, rent for a home is paid monthly, no later than the 20th of the following month (Civil Code art. 6.583(2)). Most leases name a day, and then that day applies.

A landlord may ask for rent in advance only for the first month (art. 6.583(5)). When a person or a company lets a home on commercial terms, the charges for water, energy and utilities are set by agreement (art. 6.584(3)).

What interest and late fees can a landlord charge?

A tenant who pays late owes 5% annual interest on the unpaid amount unless the law or the lease sets a different rate, or 6% when both sides are businesses (art. 6.210). For example, on €500 of rent paid 30 days late: 500 × 5% × 30 / 365 = €2.05.

Late fees are a contractual penalty: they can be charged for each day of delay, but only if the lease provides for them (art. 6.71). A court can reduce a penalty that is unreasonably high (art. 6.258(3)), so a moderate rate is the safer one to agree.

How to remind the tenant and demand payment in writing

Debts often start with a forgotten payment or one stuck at the bank, not bad faith. Check the bank statement first, then remind one step at a time.

  1. The day after the due date: a friendly reminder with the amount and the payment details.
  2. A week later: a firmer reminder that the debt is growing and that interest or the agreed late fees apply.
  3. Two or three weeks later: a written demand with the amount and period owed, interest or late fees under the lease, a deadline to pay and the fact that the next step is court. Send it in a way you can prove it arrived.
  4. If the tenant agrees to pay in parts, put the schedule in writing and track every payment.

When can the lease be ended?

If the tenant persistently fails to pay rent or utilities for at least three months (unless the lease sets a longer period), the lease may be ended and the tenant evicted without being given other housing (art. 6.611).

A residential lease can be ended, and people evicted, only through a court (art. 6.610). An open-ended lease on commercial terms can also be ended by the landlord without any fault of the tenant, with six months' written notice (art. 6.614(1)). When a fixed-term lease ends, the tenant must move out at the landlord's demand (art. 6.613).

What not to do

Do not change the locks, cut off water or power, or remove the tenant's belongings yourself. The law allows eviction only through a court (art. 6.610), so steps like these can turn against you.

In a dispute, the tenant has the right to pay the rent into a deposit account (art. 6.583(7)), so a dispute about the amount does not mean the money is lost.

How to recover the debt through a court

A claim can be filed online through the courts' e-services portal, e.teismas.lt. Attach the lease, the invoices, the bank statement showing what was paid, the reminders and the written demand: the tidier the record, the easier the debt is to prove.

If you also ask to end the lease and evict the tenant, the court decides that too (art. 6.610). For a specific dispute, it is worth talking to a lawyer.

How AxiRent does this

AxiRent issues invoices on the day you set, and reminders to late payers go out by themselves: gentle, firmer and a formal demand. Late fees are calculated for each day and applied only once you approve, and the bank statement shows who has already paid. Every reminder stays in the history with its date, so you have the record if you need it. More on payment reminders.

Sources

This is general information, not legal advice. For a specific dispute, talk to a lawyer. The official text of the Civil Code is in Lithuanian.

Common questions

Can I ask for several months' rent in advance?

No. Only the first month's rent can be asked for in advance (Civil Code art. 6.583(5)).

Do late fees apply if the lease does not mention them?

No. Without a clause in the lease, only the statutory 5% annual interest applies (art. 6.210). Late fees are a contractual penalty and have to be agreed (art. 6.71).

Can I end the lease if the tenant is one month late?

The lease can be ended for non-payment when the tenant persistently fails to pay for at least three months (art. 6.611), and only through a court (art. 6.610). An open-ended lease can be ended with six months' written notice (art. 6.614(1)).

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UAB “Terra IT”, Kaunas, Lithuaniainfo@axirent.com+370 600 06 265Mon–Fri 9:00–18:00 (Vilnius time)