The Tenants’ Association of Montenegro has urged all relevant institutions to promptly address the issue of the informal rental market, which they allege results in significant financial losses for the state and directly jeopardizes the rights of many citizens.

“Each year, due to unregistered apartment rentals and tax evasion, the state incurs losses amounting to millions that could otherwise be allocated to social programs, subsidies, and enhancements in housing policy. The absence of formal lease agreements not only facilitates tax avoidance but also leaves tenants without legal safeguards,” stated the Tenants’ Association.

The Association pointed out that tenants, who often represent a substantial portion of the urban population, lack the opportunity to access subsidies or receive assistance from the state or local authorities.

“This situation exemplifies institutional discrimination and constitutes a severe infringement of the right to secure housing and legal protection that every citizen of Montenegro is entitled to,” remarked the Tenants’ Association.

Moreover, they expressed concern over the daily expenditures that decision-makers waste, while simultaneously neglecting their responsibility to implement essential measures that would offer protection to tenant families in Montenegro.

The Association claims that citizens appropriately question how the state manages to fund ineffective initiatives, luxury travel, and other expenses while failing to address a problem that impacts thousands of households.

They further noted that to combat this issue, they have initiated a social enterprise aimed at tackling the matters neglected by state institutions.

“This organization will work towards regulating the real estate market for the benefit of all stakeholders – tenants, property owners, and the state as a whole,” said the Tenants’ Association.

The Association has called on the ministries of finance and spatial planning, the Tax Administration (TA), local governments, and all relevant authorities to implement specific actions, including rigorous inspections and sanctions against unregistered landlords, incentivizing the formalization of leases through tax benefits for legally registered agreements, granting tenants access to subsidies and social support irrespective of contract status, and formulating a transparent and equitable housing policy that doesn’t solely favor property owners.

“The informal economy in the rental sector is not merely an economic issue; it is a social injustice that requires resolution. The state must not ignore the reality that thousands of citizens live without legal protection while simultaneously suffering substantial budget deficits,” concluded the Tenants’ Association.

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