The apartment owner cannot simply increase the rent due to rising prices: what the law and the Supreme Court say

The issue of reviewing rent during the term of the contract regularly becomes a subject of disputes between landlords and tenants, especially in conditions of inflation, changes in the market value of real estate, or increased costs of the property owner.

In practice, situations often arise when the landlord notifies about an increase in rent after the contract has been signed, citing the economic situation or market prices. However, such a desire alone does not mean there are legal grounds to change the terms of the contract.

General rule: the contract is binding for the parties

The Civil Code of Ukraine is based on the principle of freedom of contract and its mandatory execution. According to Articles 627 and 629 of the Civil Code of Ukraine, the parties independently determine the terms of the contract, and after its conclusion, these terms are binding for execution.

At the same time, part two of Article 632 of the Civil Code of Ukraine explicitly states that a change in price after the conclusion of the contract is allowed only in cases and under conditions established by the contract or by law.

For a lease (rental) contract, the payment for the use of property is regulated by Article 762 of the Civil Code of Ukraine; however, this provision does not grant the landlord the right to arbitrarily change its amount during the term of the contract.

Thus, if the contract contains a fixed rent amount and does not provide a mechanism for its review, the landlord cannot unilaterally demand an increase solely because the market rental value has risen or his expenses have changed.

When rent increase is lawful

The law does not prohibit the parties from providing a mechanism for changing the rent at the time of concluding the contract. Most often, contracts contain provisions for annual indexation, rent review depending on the inflation index, changes in the exchange rate, normative monetary valuation of the land plot, or other economic indicators agreed upon by the parties.

In such cases, applying the agreed mechanism is not considered a unilateral change of the contract since the parties have predetermined the procedure for future price review.

What the Supreme Court says

In its ruling dated May 14, 2025, in case No. 904/1892/24, the Supreme Court noted that even if the contract provides for cases of rent review, this does not mean its automatic change. If the parties agreed that the new rent amount is formalized by an additional agreement, it takes effect only after its conclusion. Furthermore, the Supreme Court emphasized that without the parties' consent, the rent amount for the past period cannot be changed through the court, as such change can only have effect prospectively.

The Supreme Court in case No. 914/2843/22 stated that for land lease contracts concluded after January 1, 2013, changes to the contract terms, including rent amount, generally take effect from the moment the parties sign an additional agreement, not from the state registration of the lease right. The Grand Chamber stressed that state registration applies to the real right of lease, not to amendments to the contract; therefore, unless otherwise agreed, the new rent amount applies from the moment the parties reach the corresponding agreement.

Indexation does not mean the right to change any calculation method

Another important legal position was expressed by the Supreme Court in case No. 922/1658/19. The court noted that the method of rent review agreed upon by the parties cannot be replaced by another.

If the contract provides only for indexation of rent according to the inflation index, this does not automatically grant the right to recalculate based on changes in the normative monetary valuation of the land plot or to apply another method of determining rent. Moreover, the mere fact that the tenant paid a higher amount for some time does not indicate their consent to change essential contract terms.

Can rent be changed through the court

Landlords may apply to the court if the tenant refuses to agree to a rent increase. However, the mere unwillingness of one party to change the contract is not sufficient grounds for satisfying the claim.

Contract modification through the court is allowed only in cases established by law or the contract itself. Additionally, Article 652 of the Civil Code of Ukraine provides for the possibility of contract modification due to a significant change of circumstances. However, to use this provision, it is necessary to prove the totality of all conditions defined by law, and ordinary market price increases, inflation, or worsening economic conditions are not always recognized as sufficient grounds for contract review.

Features for residential lease

For residential lease contracts, this means that the apartment owner cannot simply notify the tenant of a new rent amount and demand payment starting next month if such a right is not provided by the contract.

If the contract does not provide the landlord with the right to unilaterally review the rent, and the tenant does not agree to the change, the previous contract terms remain in effect until their lawful change or termination of the contract.

Therefore, when concluding the contract, it is advisable for the parties to regulate in detail the procedure for possible rent review, defining the frequency of such review, calculation formula, indexation indicators, notification deadlines, and the procedure for formalizing relevant changes. The clarity of contractual provisions largely determines the resolution of future disputes.

Advice for tenants

• Carefully check the contract: whether it provides the landlord the right to review rent, under what conditions and how often.
• Agree on a clear increase mechanism: for example, a fixed percentage, indexation, or linkage to a specific indicator.
• Do not agree to verbal changes: the new rent amount should preferably be formalized by a written additional agreement.
• Check notifications about increases: if the contract does not provide the landlord the right to unilaterally change the rent, the demand to pay more may be unfounded.
• Keep payment confirmations: receipts, bank statements, and correspondence will help in case of a dispute.
• If you cannot reach an agreement, do not rush to sign new terms. If necessary, seek legal advice or resolve the dispute in court.

Thus, Ukrainian legislation does not allow arbitrary rent increases during the term of the contract. The general rule is that price changes are possible only by mutual consent of the parties or in cases explicitly provided by law or the contract itself.

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