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What to do when a tenant does not pay rent?

· Renting property ·

Text from 2018. Laws, rates and prices may have changed since then. Ask an agent

What to do when a tenant does not pay rent?

Renting a flat to a stranger always involves a little risk. In most cases both parties do everything to fulfil the signed agreement, but there are situations in which the tenant starts to avoid paying rent. What can the flat owner do then to recover the money owed? We offer some advice in today's article.

The tenant is obliged to pay rent regularly not only by the agreement signed with the property owner but also by the Civil Code. It states that paying rent is the tenant's duty. The lease agreement, in turn, specifies the amount of that rent, the settlement period and the payment date.

When can a lease be terminated?

Where payments are not made on time, the flat owner has the right to terminate the lease, but only on condition that the tenant fails to pay for 3 full settlement periods. If we agreed to settle for a period longer than a month, the tenant is entitled to 3 months' notice, counted from the end of the calendar quarter. For monthly payments, the notice period is one month, counted from the end of the given month. If, however, the tenant pays more often than once a month, the notice period is 3 days.

Demand for payment

The property owner also has the option of issuing a demand for payment of overdue and current amounts. This must be done in writing. The document should also include a one-month deadline for paying off the arrears. Only after this time can the lease be validly terminated.

Eviction

But what if, despite the termination of the lease, the tenant does not want to move out? In such a situation you can file an eviction claim with the court. Once the judgment has been obtained, it must be passed to a bailiff, who will carry out the eviction. It must be remembered, though, that, with few exceptions, Polish law does not allow eviction onto the street. This means that the tenant must have replacement accommodation designated either by the court, or found by the municipality or by themselves. The lack of such accommodation means that the recalcitrant tenant cannot be removed from our flat.

How to recover overdue rent?

When filing a claim for payment of overdue rent, the property owner has the right to direct it at all signatories named in the lease agreement or only selected ones. It is also possible to sue people who did not sign the agreement but who evidently lived or live in the premises.

There is also the possibility of a lien on movable property if the person in arrears is insolvent. This applies to all items brought into the flat by the tenant except: appliances and items necessary for the tenants' daily functioning, things used for earning a living or for study, food supplies, and items that could be sold only well below their value but which have practical significance for the tenant. The remaining movables will be sold during court enforcement.

What the owner must not do

A situation in which the tenant does not pay rent and has no intention of moving out is certainly difficult for the flat owner and arouses very strong emotions. We should not, however, take any drastic steps, because this may end badly for us. It should be remembered that the owner has no right to change the locks in the premises or to remove the tenant's belongings in their absence. Doing so risks a claim for damages. In addition, it is forbidden to cut off utilities registered in the tenant's name, as well as water, gas and electricity. Only the supplier may do this, and only if the tenant does not pay the bills or the utility systems in the flat are damaged and need repair.

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