Renting out a property – ordinary or occasional tenancy?

A tenancy agreement comes in various forms. The most popular are the ordinary tenancy and the occasional tenancy (najem okazjonalny). These two agreements have several differences that are worth mentioning. What is more, neither can be used in every case.

What is an occasional tenancy agreement?

An occasional tenancy agreement is concluded under the Act of 21 June 2001 on the protection of tenants' rights. It is most often used when the owner, a natural person, does not run a business renting out premises. Such an agreement can be concluded for a period of no more than 10 years. Interestingly, an occasional tenancy agreement is considered to have greater legal force than a traditional one. This is mainly because the owner is better protected against possible dishonest behaviour by tenants. That is not all: an occasional tenancy agreement is an effective tool for obtaining an order for such tenants to move out of the premises. It is therefore no wonder that more and more owners decide to conclude one.

Traditional tenancy – learn its definition

A traditional tenancy is governed by the provisions of the Civil Code. In this case the landlord is obliged to hand over a flat or premises to the tenant for use for the period specified in the agreement. It is worth adding that this period does not have to be specified, which will certainly interest both tenants and owners. Of course, the agreement must contain information about the costs, that is, the rent. It may be paid in money, but it may also take the form of other benefits. It should be noted that a tenancy agreement may also be concluded orally or by implication. Only when renting a property for longer than a year is it necessary to draw up the agreement in writing. Where there is none, a traditional tenancy agreement is regarded as concluded for an indefinite period. This form of "cooperation" is most often used by investors who run a business and rent out more than one property to their tenants.

Differences between occasional and traditional tenancy

The main difference between these agreements is that the traditional version can cover not only real property but also movable items. An occasional tenancy, on the other hand, applies exclusively to residential properties. An occasional tenancy cannot be concluded for an indefinite period; a specific date must always appear in the agreement, which also distinguishes it from a traditional one. An occasional agreement gives greater protection to the owner, who can apply to have the property vacated more quickly and effectively; in this case the court route is very short and favourable to owners. A traditional tenancy also makes it possible to bring a similar claim to court, but waiting for a verdict takes several times longer. Finally, it should be added that terminating an occasional tenancy is harder than terminating a traditional one, and in the latter case it is also easier to raise the rent.