Occasional lease – what is it and how does it work?
After changes to the act on the protection of tenants ‘rights, the concept of “occasional rental” was introduced into Polish law (the act on the protection of tenants’ rights, Articles 19a-19e). What does it mean and how does it stand out?
Occasional lease is a special type of lease intended exclusively for private persons. The parties to the occasional lease, i.e. the lessor and the lessee, can only be a natural person. The landlord may be a natural person, legal person, not conducting business activity in the field of renting premises, being the owner of the property (also the owner of the cooperative ownership right to the premises). As far as the tenant is concerned, the act stipulates that the subject of an occasional lease may only be premises used to satisfy housing needs, so the tenant is only a natural person.
OCCASIONAL RENTAL AGREEMENT
This contract must be concluded in writing for a specified period, otherwise null and void, for a period not longer than 10 years. Any changes to it must be made in the same form. The specified duration of the contract may be extended after its expiry for a further maximum of 10 years.
The conclusion of the contract may also depend on the tenant paying a deposit securing the coverage of costs related to the damage caused by the tenant or possible costs of enforcement of the obligation to empty the premises. It cannot be higher than 6 times the monthly rent and must be returned by the landlord within a month, after deducting the amount due, hence the interests of not only the landlord but also the tenant are secured. The deposit can also cover unpaid rent.
The occasional lease agreement expires after the period for which it was concluded or, in the event of its termination, after a notice period.
In order for the occasional rental contract to be valid, it is necessary to report it to the Tax Office. If the landlord does not comply with this obligation within 14 days from the conclusion of the contract, it will be considered a normal property rental contract and will not have the rights that arise from the occasional rental contract. In the declaration submitted to the Tax Office, it should be indicated that the apartment was rented using an occasional lease. At the request of the tenant, the owner is obliged to provide confirmation of notification to the Tax Office.
NECESSARY DOCUMENTS FOR THE OCCASIONAL RENTAL AGREEMENT
Occasional rental agreement, unlike the standard flat rental agreement, requires additional formal issues. As provided by the Act, the obligatory attachments to the occasional lease agreement are:
- The tenant’s declaration in the form of a notarial deed on submission to enforcement and the obligation to empty and hand over the premises within the time limit indicated in the request;
- Indication of another apartment by the tenant, in which the evicted person will be able to live in the event of execution, expiry of the occasional lease agreement (it is necessary to provide the landlord with a declaration signed by the owner of the substitute apartment. This document does not have to be notarized);
- Declaration of the owner of the premises or the person having legal title to the premises on consent to the tenant’s residence and the people living with him.
These documents, drawn up in the form of a notarial deed, in practice ensure the trouble-free course of the procedure to leave the apartment at the expiry of the contract or after its earlier termination and the eviction of the tenant in accordance with the legal provisions, e.g. as a result of the use of the premises contrary to the contract, failure to pay the rent.
An important element is also the fact that the act obliges the tenant to indicate, within 21 days of receiving the information about the loss of the possibility to live in the premises indicated in the contract, another place where he will be able to live. This happens under pain of termination of the contract.
In the case of an occasional rental, there is also no protection period, preventing evictions from being carried out between November 1 and March 31. Special rights also do not apply to pregnant women, disabled women, minors and bed-ridden women staying in such premises. The landlord may indicate 7 days as the minimum time to leave the premises.
WHAT ARE THE ADVANTAGES OF OCCASIONAL RENTAL?
- the right to evict a dishonest tenant, guarantees more effective protection for property owners, it is enough to issue an enforcement clause for a declaration of submission to enforcement
- does not apply in the case of eviction, the provisions relating to the protection period before it
- transparency of the contract
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