ASK AN EXPERT: What are the start-up costs associated with renting in Prague?

The initial move-in costs for renting an apartment in Prague can add up quickly. In addition to the first month's rent, tenants should budget for a security deposit, reservation fee, and moving expenses. We asked Mikuláš Hrubý head of residential rentals at Engel & Völkers to break down the costs associated with renting an apartment in Czechia to help you stay on budget as you apartment hunt.

First, a reservation fee, typically one month's rent (ve výši měsíčního nájemného) plus VAT of 21 percent, is due to the real estate agent to reserve the apartment. This then becomes the agent's commission once a lease is signed.

When signing the lease, tenants pay a security deposit (kauce) ranging from zero to three months' rent as required by Czech law. Most landlords ask for two months' rent as a deposit. The security deposit protects the landlord from property damage or nonpayment by the tenant. If the apartment is left in good condition and all rent is paid, the deposit is refunded at the end of the lease.

In addition to the deposit, the first month's rent is paid which, by law, is due no later than the fifth of that month. So rent for August would be owed by Aug. 5, for September by Sept. 5, etc.

Between the deposit, first month's rent, and reservation fee, tenants can expect to pay 4-5 months' rent upfront. Moving costs, around CZK 20,000 for a two-bedroom, and cleaning fees of CZK 300/hour should also be budgeted. Furnishing an unfurnished rental adds to expenses.

All told, initial apartment rental costs in Prague average around 5-6 months' rent. For a typical CZK 30,000 CZK/month apartment, tenants would need to save approximately CZK 180,000 to cover move-in expenses. Planning ahead for these substantial startup costs is important for renting smoothly in Prague.

Don't hesitate to contact Engel & Völkers at Pragueandel@engelvoelkers.com. We will be happy to advise you and help you choose the ideal apartment for you, which will meet your requirements and will be in line with your particular living situation.