In today's world, where the rental property market is becoming increasingly dynamic, a new phenomenon is emerging that could revolutionize how we perceive the relationships between landlords and tenants. Institutional rental, although relatively new in Poland, is gaining more importance in the real estate market, offering solutions tailored to the needs of contemporary tenants and investors. We invite you to read on to learn more about this new form of rental and its potential impact on the future of the real estate market in Poland.
What is institutional rental?
Institutional rental, also called professional rental, is a form of property rental managed by specialized companies and investment funds that handle large portfolios of apartments. Unlike traditional private rental, where the tenant deals with an individual owner, this model involves professional entities offering a much higher level of service.
Benefits of institutional rental
- Professional property management.
- Stability and long-term leases.
- Transparency and legal protection.
- Full technical and administrative support.
- Higher standard of apartments and additional services.
Companies engaged in institutional rental provide a full range of services, encompassing not only the rental itself but also technical, administrative, and legal management. The tenant can count on their apartment always being in proper condition, with all maintenance issues swiftly resolved by a dedicated team of specialists.
Institutional rental – for whom?
This model is primarily aimed at people looking for stability and a higher standard of services. Often, tenants in such projects are:
- expats,
- corporate employees,
- young families.
Institutional rental offers them the comfort of living in high-quality properties that are fully managed by professional companies.
For investors, institutional rental provides an excellent form of profitable and stable investment. Thanks to economies of scale, these companies can manage a large number of properties, leading to cost optimization and greater investment profitability.
Properties for rent
Institutional rental vs occasional rental – what are the differences?
In a previous article, we discussed occasional rental, which, like institutional rental, is one of the forms of rental regulated by law, though there are several differences.
Formalities
Occasional leases are less formal and are primarily aimed at private owners who want to rent their apartment for a specific period of time. Institutional leases, on the other hand, are based on legally binding contracts, are more formal and usually cover a longer rental period.
Rental period
Institutional leases cover longer contracts, providing stability, while occasional leases are aimed at people looking for shorter solutions – from a few months to a year.
Legal protection
Institutional leases are often drawn up in the form of a notarial deed, which increases security for both the tenant and the property owner.
Higher cost, greater security
Both institutional and occasional rentals have their advantages and disadvantages, but institutional rental stands out with a higher level of protection and stability, which attracts people seeking certainty and long-term solutions. The cost of such rental may be higher than in the case of private rental agreements.
Institutional rental offers transparency in the terms of the agreement. Costs, usage rules, and conditions for terminating the agreement are precisely defined, minimizing the risk of misunderstandings.
Prospects for institutional rental in Poland
Institutional rental in Poland is still in its early stages but is steadily growing in popularity. In cities like Warsaw, Krakow, Wrocław, and Poznań, new investments dedicated to this rental model are emerging. Investment companies see tremendous potential in this market, especially in the context of increasing urbanization and internal migration, which drives demand for rental housing.
Summary
Institutional rental is a solution that addresses the growing needs of modern tenants and investors, offering stability, professionalism, and full technical and administrative support. For those seeking long-term, high-quality rental, as well as for investors wanting to efficiently manage their properties, institutional rental presents an attractive and safe option.
At Hamilton May, we can help you understand all aspects of institutional rental and guide you through the entire process — from selecting an apartment to handling the formalities related to the contract. If you are interested in this rental model, we invite you to contact us — we will be happy to provide detailed information and help you find the ideal solution tailored to your needs.
