Poland: Expected Changes to the Tenancy Law
→ Michał Gruca
When it comes to residential tenancy, the Polish law favours tenants over landlords. The eviction court proceedings are time consuming. Then, getting the verdict does not solve the situation. Before eviction by the bailiff, the commune must offer a replacement facility to privileged tenants, such as pregnant women, minors, pensioners, persons with limited legal capacity, disabled persons, sick persons, unemployed persons, or those requiring social service assistance.
Most other tenants, before being evicted by the bailiff, must be provided at least with temporary facilities. Contract clauses that do not comply with the statute are void and statutory provisions apply instead. So eviction proceedings are slow at both the judicial and enforcement stages.
Exception: Individuals acting as landlords
Some years ago, the situation was slightly relaxed for individuals acting as landlords of residential premises who are not carrying out business activity in terms of renting premises. Such landlords have been allowed to enter into occasional tenancy agreements. The agreements can be executed for a limited time only, and never longer than 10 years.
To take advantage of such an agreement, the tenant must name other residential premises where he can go after termination of tenancy and must provide a written statement of that property owner’s consent to the tenant living there. Additionally, the tenant must issue a formal statement in which he promises to leave the rented premises at the landlord’s request (voluntary submission to execution).
In such case, eviction is carried out based on the voluntary submission to execution and is effected to the premises named by the tenant. It makes the procedure much quicker.
To revive the residential tenancy market, the Ministry of Transport, Construction and Maritime Economy is working on an amendment to the Tenant Protection Act. Occasional tenancy agreements will be also available for business entities operating as landlords. The expected changes may lead to an increase of investment in residential property market in Poland and to the growth of rental market.