Institutional tenancy - what does it involve?

We know traditional and occasional tenancy agreements very well. It is worth noting, however, that these are not all the options open to a property owner. Today we want to describe institutional tenancy (najem instytucjonalny), which turns out to be one of the most interesting possibilities.

What is institutional tenancy?

Institutional tenancy is a right available to all owners of rental properties, such as flats. There is, however, one condition: they must run a business letting residential premises. It should be noted here that institutional tenancy applies solely to residential premises, so when letting commercial, retail or other types of premises, the business owner cannot make use of this type of tenancy. It was created so that owners of flats for rent could also count on concrete support, which cannot be said of traditional agreements, or even occasional ones. We are talking here about landlords who run a business. Thanks to institutional tenancy, the owner can have a problem tenant evicted more quickly.

How long does an institutional tenancy agreement last and how do you conclude one?

An institutional tenancy agreement for residential premises must be concluded for a fixed term. Unlike with occasional tenancy, there is no upper limit on this period. This means that an institutional tenancy agreement can be concluded for a fixed term longer than 10 years, even up to 30 years. That is not all there is to know about the institutional tenancy agreement, however, so let us move on to concluding it. The whole process requires attaching the tenant's declaration of voluntary submission to enforcement, made in the form of a notarial deed (akt notarialny). This document should state that the tenant agrees to vacate the premises within a period of not less than two weeks. The institutional tenancy agreement itself does not have to be concluded in the form of a notarial deed. It is also very simple, and at the same time does not require naming alternative premises or the owner's consent to the tenant's residence.

Termination of an institutional tenancy agreement

Of course, an institutional tenancy agreement can be terminated, which most often happens in the case of problem tenants. The agreement is most often terminated after written warnings about use of the premises contrary to the agreement. Moreover, it can be terminated when the tenant is in arrears with rent or other charges related to the use of the premises. Of course, the tenant, too, has the right to terminate the agreement if the property has defects that make it impossible to use it for its intended purpose. Furthermore, if defects endangering life or health appear in the premises, regardless of when they arose, the tenant is entitled to terminate the agreement immediately.