Property lease in Poland

Lease in Poland – legal framework

Polish regulations regarding lease agreements in Poland:

  1. Civil Code Act of April 23, 1964 (Journal of Laws of 2020, item 1740) (hereinafter referred to as: “Civil Code”);

  2. The Act on the protection of the rights of tenants, the commune’s housing stock and the amendment to the Civil Code of June 21, 2001 (Journal of Laws of 2022, item 172) (hereinafter referred to as “Tenant Protection Act”);

  3. The Civil Proceedings Code of November 17, 1964 (Journal of Laws of 2021, item 1805) (hereinafter referred to as: “Civil Proceedings Code”).

Residential lease in Poland

General information about residential lease in Poland

What kind of contracts can be concluded when renting residential premises?

We can distinguish three types of lease agreements for residential premises that may be concluded on the real estate market in Poland:

  1. A lease agreement – it is the standard agreement that may be concluded with any type of landlord (natural person, companies, foundations, associations, municipalities, the State Treasury) For the purposes of this document, those lease agreements are hereinafter referred to as “Standard lease agreements”;.

  2. An occasional lease agreement – it is the agreement that may be concluded only with a landlord being a natural person who does not conduct business in the field of renting premises;

  3. An institutional lease agreements – it is the agreement that may be concluded only with a landlord who is an entrepreneur conducting business activity in the field of renting premises.

What are main differences between the types of residential lease agreements?

A significant part of the tenant’s rights and obligations in each of the above type of contracts is identical or similar.  The main differences are that:

  1. standard lease agreements can be concluded for fixed-term or indefinite time period while the occasional and institutional lease agreements can be concluded only for a fixed-term;

  2. a rent in standard lease agreements can be increased only in terms and procedure set out in the statutory provisions while occasional and institutional lease agreements provide greater freedom of the landlord to increase the rent during the lease;

  3. occasional and institutional lease agreements enable landlord earlier termination of the lease in the circumstances determined in the contract, while standard lease agreements can be terminated by the landlord only in circumstances and observing the formal procedure set out in the statutory provisions;

  4. occasional and institutional lease agreements provide landlords with stronger protection related to the possibility of a simpler and faster eviction of the former tenant after the termination of the lease agreement without the need to obtain a court judgment. In contrast, eviction of the former tenants after expiry of standard lease agreements is allowed only upon the court judgement ordering eviction issued after court trial.

What are the essential terms of the residential lease agreements?

The residential lease agreement of any type should specify at least identification of the parties, the designation of the residential premises to be used by the tenant and the amount of rent due to the landlord. Other issues, unless they are regulated in the contract, will be subject to the statutory provisions, including in particular the Civil Code and the Tenant Protection Act.

What are the key obligations of the landlord?

The basic obligation of the landlord is to hand over the agreed premises to the tenant for use for the duration of the contract. In the remaining scope, the lease agreement may quite freely define the landlord’s obligations, provided that it does not violate the mandatory provisions of law, principles of community life or does not contradict the nature of the lease. The Civil Code, Tenant Protection Act and other laws provides for a number of contractual obligations of the landlord, which apply unless the lease agreement provides otherwise.

What are the key obligations of the tenant?

The basic obligation of the tenant is to pay an agreed rent and use the rented premises in the manner specified in the contract, and when the contract does not specify the manner of use – in a manner corresponding to the residential purpose of the lease. In the remaining scope, the lease agreement may quite freely define the tenant’s obligations, provided that it does not violate the mandatory provisions of law, principles of community life or does not contradict the nature of the lease.

The Civil Code, Tenant Protection Act and other laws provides for a number of contractual obligations of the landlord, which apply unless the lease agreement provides otherwise.

Is it possible to freely define the rights and obligations of the parties in the lease agreement?

In all types of lease contracts, the parties have a great freedom to freely shape the content of the contract, provided that it does not violate the mandatory provisions of law, the principles of community life or the nature of the l lease. Some of the statutory provisions of the Civil Code and Tenant Protection Act relating to the rights and obligations of tenants are optional (default rules). They are applicable unless the parties to the contract agree otherwise. This applies in particular to the provisions on maintenance of the rented premises, incurring and settlement of outlays, making changes to the subject of the lease or right to sublease. In general, the parties of occasional and institutional lease agreements have greater contractual freedom as in those types of agreements the tenant’s protection is weaker than under standard lease agreements.

How should the rent be specified in the lease agreement?

In theory, rent may be specified in money or in performances of another type (e.g. delivery of goods). In the practice of the Polish residential real estate market, rent is always determined in money. There are no legal restrictions on the permissible amount of rent for properties to let on the open market (i.e. not rented from the housing stock of the commune).

What is the date and method of payment of the rent?

The tenant is obliged to pay rent at an agreed time, usually stipulated in the lease agreement. Usually the lease agreements provide for payment of rent in advance in monthly periods. If the rent payment period is not fixed in the contract, the rent should be paid in advance:

  1. for the whole tenancy period, if the tenancy is not to be longer than one month,

  2. monthly, by the tenth day of the month, if the tenancy is to be longer than one month or if the contract is executed for a non-fixed term.

The contract should specify the method of payment of the rent, e.g. bank transfer or cash payment.
If the contract does not provide for a method of payment of the rent, it should be paid in cash to the landlord at the landlord’s place of residence or registered seat.

The contract may provide for the payment of the rent in any foreign currency. Virtually, the rent is most often payable in PLN. The rent payable in EUR is much less popular. Rent payment in other foreign currencies is very rare.

 Can the landlord charge the tenant with any fees other than rent?

In addition to the rent, the landlord may charge the tenant with the fees independent of a landlord regarding the utilities or services provided for the premises (e.g. fees for the supply of electricity, gas, water and collection of sewage, waste and liquid waste to the premises). The landlord cannot add its margin to these fees.

Should the handover of the rented premises to the tenant be documented?

Before handing over the premises, the landlord and the tenant should draw up a protocol in which they specify the technical condition and degree of wear of the installations and equipment located therein. The protocol is the basis for settlements when returning the premises. In addition, the protocol should specify the status of utility meters as at the date of handing over the premises to the tenant, thanks to which it will be possible to determine the consumption of water, electricity or gas by the tenant after handing over the premises.

Drawing up the handover protocol is particularly important for the tenant. The law provides for the presumption according to which the residential premises is delivered to the tenant in good condition and suitable for the agreed use. It is a rebuttable presumption which the tenant may refute by evidence to the contrary. Such evidence may be a handover protocol specifying the condition of the premises at the time of handover to the tenant, drawn up before the premises are handed over.

Can the landlord get access to the rented premises occupied by the tenant?

The landlord should not interfere the tenant with using the rented premises. Therefore the landlord is entitled to get access to the premises only in certain, extraordinary circumstances.

First of all, the landlord is entitled to enter the premises in the event of a failure causing damage or directly threatening the damage, and the tenant is obliged to immediately make the premises available for removal of occurred failure, for example, in the case of gas, smoke, or flooding of the neighboring apartment from the apartment. If the tenant, contrary to his or her obligation, refuses to provide the premises or is absent, the landlord has the right to enter the premises in the presence of a police officer or municipal (city) guard, and when it requires the help of the fire brigade – also with its participation. The presence of a police or municipal guard officer is an absolute requirement. It cannot be replaced, for example, by the building administrator or the neighbor. In the event of entering the premises, it is required to secure the things in the premises and the premises itself, and to draw up a protocol of these activities.

Furthermore, the tenant should also make the premises available to the landlord if there is a need of:

  1. periodic, and in particularly justified cases but also ad hoc, inspection of the condition and technical equipment of the premises and determination of the scope of necessary works and their implementation;

  2. substitute performance by the owner of the works that tenant refused to perform despite its obligation.

In the above situations, the premises should be made available after prior appointment. In practice, the dates of inspections of the premises are often set in the lease agreements.

Can the tenant make changes and improvements to the rented premises?

Without the consent of the landlord, the tenant may not make changes to the rented premises contrary to the contract or intended use of the premises. Unless the lease agreement provides otherwise, the tenant can make improvements in the premises only with the consent of the landlord and on the basis of a written agreement specifying the manner of settlements on this account. Often, improvements to the premises by the tenant and settlements on this account are already provided for in the lease agreement.

It is permissible to make a reservation in the lease agreement that the value of the improvements made by the tenant will be reimbursed by the landlord in such a way that the amount corresponding to the value of these improvements will be successively deducted from the rent. It is also allowed to stipulate that the tenant is not entitled to take the improvements made during the lease (e.g. dismantle appliances or installations from an apartment)or to demand the return of their equivalent after the end of the lease.

Improvements made by the tenant without the required consent of the landlord during the term of the lease may justify the termination of the lease by the landlord as this might be an example of use the premises in a manner inconsistent with the contract. The landlord is also entitled to make claims for damages against the tenant.

After the end of the lease the landlord may request the removal of the improvements introduced by the tenant in breach of the contract and the restoration of the previous state, if this does not affect the substance of the premises, or retain the improvements with the return of their value taking into account the degree of wear and tear as at the date of emptying the premises.

Can the tenant let use the rented premises to other people?

The tenant is not allowed to hand over the premises or any part thereof for free-of-charge use or sublet it, without the landlord’s consent. Violation of the obligation to obtain the landlord’s consent may justify the termination of the lease by the landlord, observing one month termination period effective at the end of the calendar month.

The landlord’s consent is not required for a person towards whom the tenant has a maintenance obligation
(e.g. spouse, children, parents, siblings).

What are the rights of tenant in case the defects of the rented premises appeared?

If the rented premises has defects that limit its suitability for the agreed use, the tenant may demand an appropriate reduction in the rent for the duration of the defects

If, at the time of the release to the tenant, the rented premises had defects that prevent its use, or if such defects arose later, and the landlord, despite the notification received, did not remove them in a timely manner, or if the defects cannot be removed, the tenant may terminate lease without notice. The tenant may not however demand a reduction in the rent or terminate the lease agreement due to defects, if he or she knew about their existence at the time of concluding the contract.

The above rules regarding the landlord’s liability for defects and providing for the tenant’s rights in this respect may be modified in the lease agreement.

The lease agreement may not, however, deprive the tenant of the right to terminate the contract in a situation where the defects of the rented premises are of such a type that they endanger the health of the tenant or his or her household members. In such situation the tenant may terminate the lease without notice, even if he or she knew about the defects at the time of concluding the contract.

In what condition should the rented premises be returned after the end of the tenancy?

Unless the lease agreement provided otherwise, after the end of the lease, the tenant is obliged to return the premises in a non-deteriorated condition; however, tenant is not responsible for the wear and tear of premises as a result of proper use.

What fees are paid by the person occupying the apartment after the expiry of the lease?

Person occupying the premises without legal title is obliged to pay monthly compensation until the day the premises is vacated. The compensation shall corresponds to the amount of rent that the landlord could receive for the lease of the premises. If the compensation does not cover the losses incurred, the landlord may require supplementary compensation.

In case the person is entitled to a replacement premises or a social housing, the amount of the compensation to be paid by that person is limited to amount of rent which would be required to pay if the lease had not expired.

In what situations can the landlord claim compensation from the tenant?

The tenant may be liable to the landlord for damages for:

  1. non-performance or improper performance of obligations under the lease agreement (contractual liability) or

  2. a tort committed to the detriment of the landlord, i.e. for conduct contrary to the applicable legal order, which is understood as orders and prohibitions resulting from the provisions of law and principles community life (tort liability).

The landlord’s claims for damages may arise, for example, from breach of the tenant’s obligation to maintain the apartment in a non-deteriorated condition, destruction or damage to the equipment of the apartment or common parts of the building belonging to the landlord, or delay in returning the apartment after the end of the tenancy. Certain behaviors of the tenant may qualify as both a breach of contract and a tort, e.g. destruction or damage to a dwelling. In such a situation, there is a concurrence of grounds for the tenant’s liability for damages. This means that the landlord can claim compensation of his or her choice for breach of contract or tort.

In the case of contractual liability, the provisions of the Civil Code assume that the infringer is guilty. This means that in case of court dispute, the tenant has the burden of proving that the damage resulting from non-performance or improper performance of the lease agreement is not a consequence of circumstances for which the tenant is responsible. On the other hand, in the case of claims for damages for a tort, the burden of proving the perpetrator’s fault rests with the aggrieved party.

To what extent is the tenant liable for damages? Can the parties contractually modify the scope of liability for compensation?

Pursuant to the provisions of the Civil Code, the person obliged to compensate is liable only for the normal consequences of the act or omission from which the damage resulted. Within the above limits, unless the statutory law or contract provide otherwise, compensation for the damage covers the losses suffered by the aggrieved party and the benefits that could have been achieved if the damage had not been caused.

The parties to the contract are allowed to some extent modify the statutory rules of liability for damages, e.g. by extending the liability to circumstances for which the party is not responsible under the law or by limiting or excluding liability for a given type of circumstances or damage. The contract may not, however, exclude liability for damage caused intentionally or for damage to a person. In addition, the contractual limitation or exclusion of the entrepreneur’s liability to the consumer may be considered a prohibited clause that will not be binding on the parties to the contract.

Standard lease agreements

What is a required form of the standard lease agreement?

The standard lease agreement may be concluded in any form including written document, oral agreement or by email. However, the lease agreement for a fixed term longer than one year, shall be concluded in a written form, otherwise such an agreement is considered as concluded for indefinite time period.

For how long the standard lease agreement can be concluded?

The standard lease agreement may be concluded for a fixed term not longer than 10 (ten) years or for an indefinite time period. The lease concluded for a fixed term longer than 10 (ten) years shall be deemed to be concluded for an indefinite period after that date.

Can the landlord increase the rent during the term of the standard lease agreement without consent of the tenant?

The rent for a residential premises rented under the standard lease agreement may be increased by the landlord during a lease term only in accordance with the provisions of the Tenant Protection Act. The landlord may increase the rent by giving notice, effective at the end of the calendar month. The notice period is 3 months, unless the parties agree on a longer period in the contract. The termination of the rent must be made in written form. The increase may not exceed the limits provided for in the Tenant Protection Act i.e.

  1. rent valorization shall correspond to the CPI index for the previous year or

  2. increased rent does not exceed 3% of the reconstruction value of the premises or

  3. increased rent is not higher than sum of: (1) 1.5% of outlays for the construction or purchase of the premises made by the landlord or 10% of outlays for permanent improvement of the premises made by the landlord and (2) fair profit;

In practice, valorization based on the CPI index is primarily used.

Can the landlord require deposit from the tenant under the standard lease agreement?

The landlord may demand upon the lease agreement that tenant pays a deposit securing the coverage of the rent and additional fees due to the landlord on the day the premises is vacated. The deposit may not exceed twelve times the monthly rent for the premises, calculated according to the rental rate applicable on the date of conclusion of the lease agreement. In market practice, lease agreements usually provide for a deposit equal to 1-3 monthly rent. The right to collect deposit and its amount should be stipulated in the lease agreement.

When the deposit paid by the tenant should be returned by the landlord?

The deposit shall be returned within one month from the date of emptying the premises or acquiring its property by the tenant, after deducting landlord’s fees unpaid by a tenant for the lease of the premises.

How much is the deposit refundable after the end of the lease?

The deposit is subject to compulsory valorization corresponding to the increase of the rent rate. The amount of the deposit adjusted as at the date of its return should correspond to the amount equal to the product of the monthly rent applicable on the date of the deposit return and the multiple of the rent accepted when collecting the deposit, but in an amount not lower than the deposit collected. Therefore, if the deposit was collected in the amount of three months’ rent at the rental rate applicable on the date of concluding the lease agreement, then the deposit in the amount of three months’ rent at the rent rate applicable on the date of return of the deposit is refundable, but this amount cannot be lower than the deposit collected, of course taking into account deductions for the landlord’s receivables secured by a deposit.

What are the obligations of the landlord regarding maintenance and repairs of the rented premises?

The obligations of the landlord as described below shall apply unless the lease agreement provides otherwise.

The landlord should hand premises over to the tenant in a condition fit for the agreed use and keep it in such a condition for the duration of the lease. However, the tenant shall bear minor outlays connected with normal use of dwelling. The landlord should repair and replace of:

  1. internal water, gas and hot water installations (but without fittings and accessories),

  2. internal sewage systems, central heating with heaters, electrical installation, collective antenna,

  3. heating stoves, window and door joinery, floors, floor coverings, and wall plasters.

The landlord is obliged to maintain proper condition, order and cleanliness of the premises and equipment of the building and its surroundings, used for common use by residents. The landlord is obliged to ensure the efficient operation of the existing installations and devices related to the building, enabling the tenant to use water, gaseous and liquid fuels, heat, electricity, passenger lifts and other installations and devices constituting the equipment of the premises and building specified in separate regulations. In the event of lease an apartment that has been vacated by the previous tenant, the landlord is obliged to replace the worn out elements of the apartment’s equipment.

What are the obligations of the obligations of the tenant regarding maintenance and repairs of the rented premises?

The obligations of the tenant as described below shall apply unless the lease agreement provides otherwise.

The tenant is obliged to maintain the rented premises in a proper technical and hygienic and sanitary condition as well as is obliged to observe the house order. The tenant is obliged to take care of and protect against damage or devastation parts of the building intended for common use, such as passenger lifts, staircases, corridors, chute rooms, other utility rooms and the building surroundings. The tenant is responsible for repair and maintenance of:

  1. floors, floor coverings, ceramic, glass and other wall coverings;

  2. windows and doors;

  3. built-in furniture, including its replacement;

  4. kitchen units, kitchens and flow water heaters (gas, electric and coal), water heaters, bathtubs, shower trays, toilet bowls, sinks and washbasins with siphons, faucets and tap valves and other sanitary devices with which the premises is equipped, including their replacement;

  5. accessories and security of the electrical installation, with the exception of the replacement of cables and accessories of the collective antenna;

  6. coal and storage furnaces, including the replacement of worn out elements;

  7. central heating, and if it has not been installed at the expense of the lessor, also its replacement;

  8. drainage pipes of sanitary devices up to collective risers, including immediate removal of their obstruction;

  9. other elements of the equipment of the rented premises by painting or wallpapering and repairing damage to plaster on walls and ceilings, painting of doors and windows, built-in furniture, kitchen, sanitary and heating appliances.

Can the landlord terminate the standard lease agreement?

The landlord can terminate the standard lease agreement only in limited cases. The grounds and procedure for the termination of a lease by the landlord is specified in the Tenant Protection Act and does not have to be repeated in the text of the contract to be applicable. The parties of the lease agreement are not allowed to change the procedure and grounds for terminating the contract by the landlord, to the detriment of the tenant, e.g. by introducing the possibility of termination the contract for other reasons or with a shorter notice period. The grounds and procedure for termination of the lease by the landlord are the same with respect to the fixed-term and indeterminate term lease agreements.

The termination should be made in writing under pain of nullity and it should specify the reason for the termination. We can distinguish the following grounds for the lease termination by a landlord:

A. Causes attributable to the tenant:

Not later than one month in advance, at the end of the calendar month, the landlord may terminate the lease if the tenant:

  1. despite a written warning, continues to use the premises in a manner inconsistent with the contract or in accordance with its intended use, or neglects its obligations, allowing damage to occur, or destroys devices intended for shared use by residents, or grossly or persistently violates the domestic order, making the use of the premises burdensome from other premises, or

  2. is in default with the payment of rent or fees not dependent on the landlord, charged by the landlord only in cases where the tenant does not have a direct contract with the utility or service provider, for at least three full payment periods despite prior notice in writing about the intention to terminate the lease and set an additional monthly deadline for payment
    of outstanding and current receivables, or

  3. sublet or handed over the premises or a part of it for free use without the required written consent of the landlord.

B. The landlord may also terminate the lease observing:

  1. a six-month notice period due to the tenant’s non-residence for a period longer than 12 months.

  2. Causes attributable to the landlord:

  1. Not later than one month in advance, at the end of the calendar month, the landlord may terminate the lease to a tenant who has a legal title to another residential premises located in the same or a nearby city or town (i.e. located in the same or neighboring district) and the tenant may use the premises, if the premises meets the conditions for a replacement premises.

  2. Not later than six months in advance, at the end of a calendar month, the landlord may terminate the lease if he or she intends to live in the premises belonging to him or her, if the tenant is entitled to the another premises in which he or she can live in conditions as if he or she had received a replacement premises, or if the landlord provides him or her with a replacement premises in the same city;

  3. Not later than 3 years in advance, at the end of a calendar month, the landlord may terminate the lease if he or she intends to live in his or her dwelling and does not provide the tenant with a replacement premises and the tenant is not entitled to the another premises in the same city.

The above rules shall apply if the landlords’ premises are to be inhabited by their adult descendants, ascendants or a person to whom the landlord has a maintenance obligation. Termination of the lease, under pain of nullity, should indicate the person who is to live in the owner’s premises.

C. Other causes:

Not later than one month in advance, at the end of the calendar month, the landlord may terminate the lease if the tenant uses the premises that require emptying in connection with the need to demolish or renovate the building.

Can the tenant terminate the standard lease agreement?

Generally the rules for termination of the lease by the tenant are different for contracts concluded for indefinite period and fixed term.

Lease agreement for an indefinite period: The tenant may terminate the lease agreement concluded for an indefinite period observing termination period without giving any reason. If the lease agreement was concluded for an indefinite period, the tenant may terminate the lease:

  1. no later than three months in advance at the end of the calendar month, if the rent is payable monthly;

  2. no later than three months in advance at the end of the calendar quarter; if the rent is payable for rental periods longer than one month,

  3. no later than three days in advance, if the rent is payable for rental periods shorter thar on month,

  4. one day in advance in case of daily rental.

The lease agreement may provide for different termination period for the tenant, however in case of lease agreement in which the rent is payable monthly, the termination period can be only extended (it is not allowed to stipulate termination period shorter than 3 months.)

Lease agreement for fixed-term period: The tenant may terminate the lease agreement concluded for a fixed-term period only in the cases specified in the contract. This means that for fixed-term contracts, the terms and procedure for terminating the tenancy must be clearly stated, otherwise the tenant will not be able to terminate the tenancy earlier.

Moreover, any lease agreement can be terminated by a tenant with an immediate effect, in case a serious defect appears, and a landlord did not remove them in a timely manner, or if the defects is irremovable.

What is the procedure for evicting a tenant from residential premises after the end of the lease under the standard lease agreement?

If the tenant continues to occupy the premises after the termination or expiry of the standard lease agreement, the landlord should bring a lawsuit against the tenant and obtain an eviction order obliging the tenant to vacate the premises. In an eviction case, the court decides whether the defendant is entitled to a social housing. If granted, the court orders to suspend the enforced emptying of the premises until the commune submits an offer to conclude a social housing lease agreement for the premises.

Polish law does not allow the landlord to arbitrarily evict a former tenant who does not want to voluntarily leave the occupied premises. Such an act of the landlord may be a criminal offense.

Occasional lease in Poland

What is an occasional lease agreement?

An occasional lease agreement is a sort of lease agreement that can be concluded only for a fix-term no longer than 10 years. Distinguishing features of an occasional lease agreement are:

  1. much greater freedom of the landlord to increase the rent during the lease;

  2. possible earlier termination of the lease by landlord in the circumstances determined in the contract;

  3. the possibility of a simplified eviction of the tenant from the apartment after the end of the lease.

Who can be a landlord under occasional lease agreement ?

An occasional lease agreement can be concluded only by a natural person who does not conduct business in the field of renting premises.

Who can be a tenant under occasional lease agreement?

Only natural person can be a tenant under occasional lease agreement.

What is the permitted lease term under the occasional lease agreement?

An occasional lease agreement that can be concluded for maximum 10 years.

What is a required form of the occasional lease agreement?

The contract for the occasional rental of premises and amendments to this contract shall be made in writing, otherwise shall be null and void.

What documents are required from a tenant to conclude an occasional lease agreement?

The following documents shall be provided by a tenant to the occasional lease agreement:

  1. the tenant’s declaration in the form of a notarial deed, in which the tenant has submitted to enforcement and undertook to empty and deliver the premises used under the occasional lease agreement within the time limit indicated in the request of a landlord;

  2. written statement of a tenant indicating another premises in which he or she will be able to live in the event of execution of the obligation to empty the premises;

  3. the declaration of the owner of the premises or a person having legal title to the premises referred to in point b, on consent to live the tenant and people living with him in the premises indicated in the declaration; at the request of the landlord, a declaration with a signature certified by a notary is attached.

The above documents are intended to enable the landlord to carry out a simplified eviction in the event of termination or expiry of the lease (see point. 44 below) .

In the event of the loss of the possibility of living in the premises indicated in a written statement of tenant, the tenant is obliged, within 21 days from the date of becoming aware of this event, to indicate another premises in which he or she could live in the event of the execution of the obligation to empty the premises, and submit the required statement in this regard. Otherwise, the landlord is entitled to terminate the lease observing 7 day notice period.

What amount of a deposit can be requested by a landlord upon an occasional lease agreement?

The deposit may not exceed six times the monthly rent for the premises, calculated according to the rental rate applicable on the date of concluding the occasional lease agreement. The maximum amount of the deposit
is therefore lower than in the case of a standard rental agreement, where the acceptable amount is the equivalent of 12 months’ rent.

The deposit secures covering the fees for the premises that the landlord is entitled to on the day the premises is vacated and any costs of enforcement of the obligation to empty the premises.

How much is the deposit refundable after the end of the occasional lease agreement?

The deposit is subject to compulsory valorization under the same rules as in the standard lease agreements (see: point 24 in the section: STANDARD LEASE AGREEMENTS).

When the deposit paid by the tenant should be returned by the landlord?

The deposit shall be returned within one month from the date of emptying the premises or acquiring its property by the tenant, after deducting landlord’s fees unpaid by a tenant for the lease of the premises.

What are the rules for increasing the rent in the occasional lease agreement?

The rules and procedure of rent’s increases should be specified in the occasional rental agreement. The regulations do not impose restrictions on the frequency and amount of allowable rent increases by the landlord.

In a situation where the contract does not regulate the matter of rent indexation, a problem arises regarding the interpretation of the statutory provisions, i.e. whether in such a situation the general rule of the Civil Code applies, allowing the landlord to unilaterally terminate the rent one month in advance at the end of the calendar year, or not. Therefore, we recommend that the lease agreements always expressly stipulate that the rent is or is not subject to indexation or any unilateral change by a landlord.

What are the obligations of the landlord regarding maintenance and repairs of the rented premises?

The obligations of the landlord as described below shall apply unless the lease agreement provides otherwise.

The landlord should deliver the premises to the tenant in a condition fit for the agreed use and keep it in such a condition for the duration of the lease. The landlord is obliged to carry out necessary repairs without which the premises is not suitable for the agreed use. This obligation does not apply to minor outlays and repairs, the performance of which is the responsibility of the tenant.

What are the obligations of the obligations of the tenant regarding maintenance and repairs of the rented premises?

The obligations of the tenant as described below shall apply unless the lease agreement provides otherwise.

The tenant should, for the duration of the lease, use the rented premises in the manner specified in the contract, and when the contract does not specify the manner of use – in a manner corresponding to the residential purpose of the lease.  The tenant should take care that the rented premises does not deteriorate. The tenant is not responsible for the wear and tear of the premises as a result of proper use.

The tenant is obliged to make minor outlays combined with the usual use of premises. Minor outlays that are charged to the tenant of the premises include, in particular: minor repairs to floors, doors and windows, painting walls, floors and the inside of the entrance door, as well as minor repairs to installations and technical devices ensuring the use of light, heating the premises, inflow and water outflow.

The tenant may install electric lighting, gas, telephone, radio and other similar devices in the rented premises, unless the method of their installation contradicts applicable regulations or threatens the safety of the property. If the cooperation of the landlord is required to install the equipment, the tenant may demand this cooperation with reimbursement of the resulting costs.

What are the rules for terminating the occasional lease agreement by the landlord?

The occasional lease agreement may be terminated by the landlord:

  1. for the reasons specified in the contract or

  2. due to causes attributable to the tenant i. e: not later than one month in advance, at the end of the calendar month, if the tenant:

  1. despite a written warning, continues to use the premises in a manner inconsistent with the contract or in accordance with its intended use, or neglects its obligations, allowing damage to occur, or destroys devices intended for shared use by residents, or grossly or persistently violates the domestic order, making the use of the premises burdensome from other premises, or

  2. is in default with the payment of rent or fees not dependent on the landlord, charged by the landlord only in cases where the tenant does not have a direct contract with the utility or service provider, for at least three full payment periods despite prior notice in writing about the intention to terminate the lease and set an additional monthly deadline for payment
    of outstanding and current receivables, or

  3. sublet or handed over the premises or a part of it for free use without the required written consent of the landlord.

  4. did not inform landlord that his or her situation had changed and that he or she would have nowhere to move, should the execution take place;

  5. informed about the change in the situation that he would have nowhere to move in the event of an execution, but did not indicate any other premises within 21 days.

Contrary to the standard lease agreement, it is possible to reserve the right of the landlord to earlier termination of the occasional lease agreement.

What are the rules for terminating the occasional lease agreement by the tenant?

The tenant is entitled to terminate the occasional lease agreement:

  1. with an immediate effect, in case a serious defect of the premises appears, and a landlord did not remove them in a timely manner, or if the defects are irremovable or

  2. in the cases specified in the contract. This means that the terms and procedure for terminating the lease must be clearly stated, otherwise the tenant will not be able to terminate the tenancy earlier.

 

What is the procedure for evicting a tenant from residential premises after the end of the lease under the occasional lease agreement?

After the expiry or termination of the occasional lease agreement, if the tenant has not voluntarily vacated the premises, the landlord shall deliver to the tenant a request to empty the premises within a time limit not shorter than 7 days since the request is delivered to the tenant, made in writing with an officially certified signature of the owner.

In the event of an ineffective expiry of the period set by the landlord to empty the premises, the landlord shall apply to the court for an enforcement clause to be issued to a notarial deed that was provided by the tenant in connection with conclusion of the occasional lease agreement. A notarial deed with an enforcement clause issued by the court is an enforcement title enabling the initiation and conduct of enforced eviction by a bailiff. The proceedings on granting an enforcement clause and enforcement proceedings are regulated in the Code of Civil Procedure

Institutional lease in Poland

What is an institutional lease agreement?

An institutional lease agreement is a sort of lease agreement that can be concluded only for a fix-term.
Similar to occasional lease agreements, distinguishing features of an institutional lease agreement are:

  1. much greater freedom of the landlord to increase the rent during the lease;

  2. possible earlier termination of the lease by landlord in the circumstances determined in the contract;

  3. the possibility of a simplified eviction of the tenant from the apartment after the end of the lease.

Who can be a landlord under the institutional lease agreement?

The institutional lease agreement can be concluded only by a landlord who is an entrepreneur conducting business activity in the field of renting premises.

Who can be a tenant under the institutional lease agreement?

Only natural person can be a tenant under the institutional lease agreement.

What is the permitted lease term under the institutional l lease agreement?

The institutional lease agreement can be concluded for a fixed-term without time limitations. Contrary to standard lease agreement, the institutional lease agreement does not change into the indeterminate term agreement after 10 years.

What is a required form of the institutional lease agreement?

The contract for the occasional rental of premises and amendments to this contract shall be made in writing, otherwise shall be null and void.

What documents are required from a tenant to conclude the institutional lease agreement?

The tenant shall provide the landlord with the declaration in the form of a notarial deed in which the tenant has submitted to enforcement and undertook to empty and deliver the premises used under the institutional premises lease agreement on the date indicated in the request of the landlord, and acknowledged that in the event of the need to perform the above obligation, he or she will be not entitled to a social housing or a temporary room.

The above document is intended to enable the landlord to carry out a simplified eviction in the event of termination or expiry of the lease (see point. 51 below) .

What is the procedure for evicting a tenant from residential premises after the end of the lease under the institutional lease agreement?

After the expiry or termination of the institutional lease agreement, if the tenant has not voluntarily vacated the premises, the landlord shall deliver to the tenant a request to empty the premises within a time limit not shorter than 14 days since the request is delivered to the tenant, made in writing with an officially certified signature of the landlord.

In the event of an ineffective expiry of the period set by the landlord to empty the premises, the landlord shall apply to the court for an enforcement clause to be issued to a notarial deed that was provided by the tenant in connection with conclusion of the institutional lease agreement. A notarial deed with an enforcement clause issued by the court is an enforcement title enabling the initiation and conduct of enforced eviction by a bailiff. The proceedings on granting an enforcement clause and enforcement proceedings are regulated in the Code of Civil Procedure.

Are the rights and obligations of the landlord and the tenant under the occasional lease agreement and the institutional lease agreement the same?

The rights and obligations of the parties to the occasional and institutional lease agreement are practically identical. Therefore, the questions and answers about the occasional rental in points 34-42 (except for point 40 (b) (iv. and v.) apply to institutional lease agreement. The significant differences between these contracts relates to:

  1. landlord identity (see: points 31 and 46)

  2. lease period (see: points 33 and 48)

  3. documents required from the tenant (see: points 35 and 50).

Expert team leader DKP Legal Marcin Kręglewski
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