When does a cave become a house? HD clarifies.

Can a mountain space, where the walls and roof are made of rock, be considered a ‘house’ within the meaning of the law? Yes, according to the Supreme Court. In a new decision, the Supreme Court has ruled that a garage embedded in the rock can also be covered by the Rent Act.

The Supreme Court’s judgment of 22 May 2025 (case T 1347-24) concerns a lease in a multi-storey garage where the garage is embedded in the rock and where parts of the walls and roof consist of visible rock. The garage has several floors, ventilation, electricity and storm water drains. The Supreme Court does not consider that the garage differs from a normal car park simply because the walls and roof are partly made of rock. Important factors in the assessment of whether a space is to be considered as a “house” are that the construction should not be able to be moved too easily, there should be a roof, walls and provide weather protection. The intended use must also be specifically considered. Against this background, the Supreme Court finds that the garage embedded in the rock is a “house” and the lease is to be considered as rent.

Why is the concept of ‘house’ so important?

Determining whether a space is to be considered as a ‘house’ is key as it is a decisive factor for the applicability of the Tenancy Act. The rights and obligations of the parties regarding, inter alia, termination, renegotiation and security of tenure may differ depending on the type of tenancy.

What does the judgement mean?

With this ruling, the Supreme Court clarifies that a traditional above-ground building is not required for a space to be considered a “house”. Even spaces that are more reminiscent of a cave are to be considered “houses” if the space is designed in such a way that it fulfils the requirements for a house and the intended purpose of the lease normally falls within the scope of rent. The ruling is thus of importance for property owners and contracting parties when letting premises in unconventional environments.

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