Rental of real estate is a complex process that requires careful planning and understanding of applicable regulations. In Poland, one form of rental that is gaining popularity is occasional lease. For many landlords and tenants, this form of agreement can be a beneficial solution, but it’s important to understand its details to fully take advantage of its potential. In today’s article, we will explain what occasional lease is, the benefits it offers to both parties, and the obligations it entails.
What is occasional lease?
Occasional lease is a specific type of rental agreement characterized by additional protections for both the landlord and the tenant. Unlike a standard rental agreement, occasional lease requires fulfilling several extra formalities, including the tenant signing a notarial declaration. This type of agreement is generally preferred when the landlord wants more control over the rental process, while the tenant values clear conditions and the ability to protect their rights.
Why do landlords decide for occasional lease?
Occasional lease offers landlords several significant advantages, which can be crucial for managing their rental property.
- Increased legal security – The tenant’s notarial declaration of voluntary submission to execution and the indication of an alternative residence in case of eviction provides strong protection for the landlord's interests.
- Faster eviction procedures – In case of issues with the tenant, occasional lease allows for faster eviction procedures, minimizing financial losses for the landlord.
- Greater flexibility – Shorter agreements, typical of occasional leases, allow landlords to renegotiate rental terms more frequently or quickly adapt to changing market conditions.
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Occasional lease from the tenant's perspective
Although it requires fulfilling additional formalities, occasional lease can also be beneficial for the tenant.
- Certainty of contract terms – Clearly defined rental terms and obligations of both parties provide tenants with a sense of security and protect against unforeseen changes from the landlord.
- Tenant rights protection – The regulations governing occasional lease include additional protective mechanisms for the tenant, making this type of lease more predictable and stable. One such protective mechanism is the tenant’s voluntary declaration of submission to execution, which protects the tenant from unjustified eviction. The landlord can use this tool only after completing the formal procedure, ensuring that the eviction process is legally compliant, thus protecting the tenant’s rights.
- Transparency of costs – Clearly defined financial terms reduce the risk of unforeseen costs and hidden fees.
Landlord and tenant obligations
Both the landlord and the tenant have specific obligations that are essential for the proper execution of an occasional lease agreement.
Landlord's obligations:
- Preparation of complete documentation – The landlord must ensure a precise rental agreement is drawn up, clearly outlining the rental conditions and obtaining the tenant’s notarial declaration.
- Compliance with legal regulations – The landlord must be aware of the applicable laws regarding occasional lease and must report the agreement to the tax office.
- Property maintenance – The landlord is responsible for maintaining the property in good technical condition and ensuring that the apartment meets all the requirements specified in the contract.
Tenant's obligations:
- Notarial confirmation of commitments – The tenant must provide a notarial declaration in which they agree to voluntarily vacate the premises after the contract ends.
- Timely payments – Regular and timely payment of rent and other fees specified in the contract is a key obligation of the tenant.
- Property care – The tenant is responsible for keeping the apartment in good condition, as outlined in the contract.
Occasional lease and eviction
One of the most important aspects of occasional lease is the ability to conduct the eviction process more quickly if the tenant fails to comply with the agreement. Thanks to the notarial declaration, the landlord can better secure their interests, which is a significant advantage over a traditional rental agreement.
Summary
Occasional lease is a solution that can benefit both landlords and tenants, provided that both parties fully understand their obligations and rights. This type of agreement helps create a stable and secure rental environment, benefiting both parties. It’s worth familiarizing yourself with the rules of occasional lease and considering whether this solution best meets your needs as a landlord or tenant.
If you need professional assistance with an occasional lease, contact the experts at Hamilton May. We will help you navigate all the formalities so you can enjoy peace of mind, knowing that your interests are well protected.
