The Private Rented Sector (hereinafter: ‘PRS’) is an institutionalised form of rental conducted by professional entities qualified in the rental of residential space. The overarching function of the PRS is to comprehensively safeguard the interests of the party renting residential premises compared, for example, to occasional rental
The basic source of legal regulation of the PRS in Poland is the Act of 21 June 2001 on the protection of tenants’ rights, the housing resource of the municipality and amendments to the Civil Code (Journal of Laws 2001 No. 71 item 733) (hereinafter: ‘the Act’). The provisions of the Civil Code apply accordingly within the scope reserved in the Act.
An institutional tenancy agreement in accordance with Article 19f(1) of the Act:
(i) a residential tenancy agreement in writing under pain of nullity,
(ii) the landlord is a natural person, a legal person or an organisational unit which is not a legal person and which is engaged in the business of renting residential premises,
(iii) the tenant is exclusively a natural person and the tenancy is for own residential purposes,
(iv) it is concluded for a fixed term,
(v) an obligatory appendix is a declaration in the form of a notarial deed of voluntary submission to execution as to payment and vacating the residential premises.
(vi) the security deposit may not exceed 6 times the rent and may be credited during the term of the contract against arrears in payments. The tenant is then obliged to pay the outstanding amount of the deposit specified in the contract,
(vii) no need to notify the Tax Office of the legal act of concluding the tenancy.
The institutional tenancy agreement with access to ownership pursuant to Section 19m of the Act additionally stipulates:
(i) only residential premises for which a land register has been established,
(ii) the tenant’s claim should be registered in Section III of the Land and Mortgage Register,
(iii) the landlord owning the residential premises.
*Today in the residential property market, the PRS operates under (i) ‘build to rent’ and (ii) ‘buy to let’ formulas. – both formulas are aimed at commercialising the property constituting the subject of the project.
17 August 2023
