- What is an occasional lease?
An occasional lease is a specific type of lease regulated by Chapter 2 of the Act of 21 June 2001 on the Protection of Tenant’s Rights, Municipal Housing Resources and Amendments to the Civil Code (consolidated text of 10 March 2023, Journal of Laws of 2023, item 725), hereinafter referred to as the „Act”. It provides the landlord with more effective protection of his/her rights in a case that the tenant fails to fulfil their obligations than in the case under a standard lease agreement. Premises can be rented only for residential purpose. However, the conditions for concluding an occasional lease agreement are more demanding than those for concluding a standard lease agreement.
- Who can be a party of occasional lease agreement? A landlord can be a natural person, who doesn’t conduct a business activity involving the premises rental, a natural person who conduct another business activity or a legal person. A tenant can be only a natural person
- For what period of time is the occasional lease agreement concluded?
The occasional lease agreement is concluded for a fixed period of time, not exceding 10 years. So, it can’t be concluded for an indefinite period of time. However, it may be extended, but it is important to remember that the total duration of these lease cannot exceed 10 years.
- Which documents must be attached to an occassional lease agreement? A declaration made in the form of notarial deed in which a tenant submitted to enforcement and undertakes to vacate and surrender the premises within the time limit specified in the demand. The statement must be made in the form of a notarial deed. Indication by the tenant of another premises where he/she could reside in the case of enforcement of the obligation to vacate the premises. A declaration by the premises owner consenting to the tenant residing in the premises indicated in the statement.
It is also important that declarations and the right to sbstitute premises must be updated in the case of any changes in this regard.
- Why is it worth concluding an occasional lease agreement?
An occasional lease agreement is beneficial for both parties because it creates a stable legal relationship, guarantees transparency regarding the consequences of failing to comply with its provision and facilitates the implementation of measures aimed at restoring a state of legal compliance.
Thanks to that, it is possible to rent a property to many tenants who would otherwise be unable to meet what are often stringent requirements regarding payment security and the fulfilment of their other obligations towards the landlord in the case of a breach of the agreement.
An occasional lease agreement opens the rental market to, for example young people at the beginning of their careers who do not have pernament employment. For the landlord, it provides a form of security that eliminates the need to take time-consuming legal action to recover possession of the property and limits the period during which any outstanding debt owed by the tenant could continue to accumulate. At the same time, it enables the tenant to assume the obligations arising from the tenancy while having the security of another property to which they can move in the event of enforcement.
- What specific obligations do the parties to an occasional lease agreement have as a result of entering into such an agreement?
the Act provides not only benefits to the parties to an occasional lease agreement, but also mechanisms designed to ensure that they comply with their respective obligations.
The landlord must notify the head of the competent tax office of the conclusion of an occasional lease agreement within 14 days of the commencement of the tenancy. Otherwise, the landlord will lose the benefits associated with the occasional lease arrangement.
If the tenant fails to designate a new alternative premises within 21 days of losing the right to occupy the existing premises, the landlord may terminate the lease agreement upon 7 days’ notice.
It is also worth noting that the conclusion of an occasional lease agreement can be made conditional upon the tenant paying a security deposit to cover amounts due to the landlord under the occasional lease agreement as of the date on which the premises are vacated, as well as any costs associated with the enforcement of the obligation to vacate the premises. The deposit may not exceed six times the monthly rent for the premises, calculated at the rent rate applicable on the date of conclusion of the occasional lease agreement.
Klara Kołodziej