Rules of occasional tenancy

Wondering what occasional tenancy is? It is a great option for many of us, because it offers greater protection against dishonest tenants. Learn the details and rules of occasional tenancy.

Institutional versus occasional tenancy

Institutional tenancy (najem instytucjonalny) is intended exclusively for those running a business connected with renting out residential premises. Such an agreement can be concluded for any period (even well over 10 years). The entrepreneur has no obligation to report the rental to the tax office. Occasional tenancy (najem okazjonalny), in turn, is a form for people for whom renting out a property is an additional – occasional – source of income, and its duration is limited.

Rules of occasional tenancy

An occasional tenancy agreement must be concluded for a fixed term. It should not be in force for longer than 10 years. The following must be attached to this type of agreement: a statement by the tenant in the form of a notarial deed (akt notarialny) submitting to eviction; an indication of an alternative place of residence for the tenant, and a statement by the owner of that property consenting to the tenant living there. Under an occasional tenancy agreement, a deposit may be taken. It may not exceed six times the monthly rent for the given property. After the premises are vacated, when all the terms of the agreement have been met, the deposit must be returned within 31 days. This type of agreement is drawn up in writing. Under this agreement the rent may be changed in accordance with the terms it contains. If the occasional tenancy agreement expires and the premises are not vacated, the owner may serve a demand to vacate the property. This is also a written document, officially certified. Remember that there is an obligation to report an occasional tenancy agreement to the tax office within 14 days of the start of the tenancy.

READ ALSO – WHAT SHORT-TERM RENTAL INVOLVES

What does a demand to vacate the premises look like?

It is a formal, written document that should contain the details of the owner and the tenant, a reference to the occasional tenancy agreement and the reason for the demand, as well as the deadline for meeting the conditions, which should not be shorter than 14 days.

Is occasional tenancy worthwhile?

Occasional tenancy gives landlords more rights over tenants. It allows faster action to be taken against behaviour that breaks the rules. However, it is harder to find people interested in this type of rental.