Flat for key money

On property portals you can find listings in which owners offer the use of a flat in return for key money ("odstępne"). How does the process work and is it worth it? Learn the rules of this type of transaction.

How does a flat for key money work?

How does renting a flat for key money ("odstępne") work? Handing over a flat in this form is based on a one-off payment of an amount agreed with the owner, made into the owner's account. In return we receive the right to register our residence at the address, and the agreed rent is kept at the same level for a certain period. This arrangement is not specifically regulated by law, so it is worth making sure that a proper agreement is signed.

Using a flat for key money is simply one of the rental options. Contrary to what you might think, it is very popular. The amount paid gives us a guarantee of good rental conditions. In such a situation the rent is usually much lower than normal and will not be increased, and we do not have to worry about registering our residence or about the agreement being terminated.

How much is the key money?

The rates are not fixed here. They depend on many factors. The owner's view and the standard of the property are decisive. The more attractive the listing, the higher the amount will be. It can range from a dozen or so thousand PLN upwards. It is worth remembering that it is a one-off cost, but a non-refundable one. We cannot claim the key money back. It is also worth taking a close look at the condition of the flat in question. Such flats often require a general renovation, and moving in immediately may be impossible. There are cases in which it is possible to buy out a key-money flat after some time. It is worth asking about such a solution if we are interested in it.

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The agreement

Once again we remind you – agreements concluded in connection with transactions on the property market should be in writing. Do not rely on oral agreements, as they carry much less weight. The rental agreement here is of a civil-law nature. It should contain the agreed amount of key money, a guarantee that charges will remain fixed, and information about buying out the flat.