Housing rental agreement in Poland

Prepared by the Rule of Law Institute Foundation at the request of the Danish Refugee Council

August 10, 2023.

Introductory information

Pursuant to the provisions of the Civil Code, under a lease agreement, the lessor (i.e. the owner) undertakes to transfer a certain thing to the lessee for use for a certain or indefinite period of time, and the lessee undertakes to pay the lessor the rent stipulated by the agreement. In the case of a residential lease (rental), the subject of the lease agreement is not a thing, but real estate - an apartment or a house (or part thereof). The agreement concluded between the parties must regulate the rights and obligations of both parties, including the rules for using the housing and financial issues. The main purpose and function of a housing lease agreement is to define the rights and obligations of both parties.

The agreement should specify what the landlord must provide to the tenant (e.g., access to the apartment) and what the tenant's obligations are (e.g., regular payment of rent, maintenance of the apartment in good condition). In addition, the agreement should set out the financial terms of the lease and the interests of both parties. That is why it is always advisable to conclude it in writing, so that in case of problems, you have a document that confirms the agreement and facilitates the filing of possible claims in case of non-compliance with the agreed terms. The lease may contain additional provisions related to the use of the apartment, such as a smoking ban, a ban on pets, or an agreement on further subletting the apartment.

Types of agreements concluded for residential purposes

To rent a dwelling, you can conclude: 

• an apartment lease agreement for a fixed term or for an indefinite period; 
• irregular lease agreement (umowa najmu okazjonalnego);
• institutional lease agreement (umowa najmu instytucjonalnego).

The latter can only be concluded with a landlord (i.e., an apartment owner) who is engaged in business activities related to the lease of premises. Thus, as tenants, we have no right to demand the conclusion of this type of agreement. However, it is worth noting that such an agreement must be in writing and, in addition, the tenant must make a declaration of voluntary submission to enforcement before a notary. This type of lease is concluded for a fixed term.

Residential lease agreement for a fixed and indefinite term

The most common lease agreement is a fixed-term lease. In it, the parties agree on a specific duration of the lease (for example, for 1 year, 2 years, etc.) or set the exact date of the lease expiration. After the expiration of the term specified in the agreement, it automatically terminates (unless extended at the request of the parties).

A lease agreement concluded for an indefinite period does not have a fixed term in its content. It can be terminated by both parties at any time, provided that they give advance notice. However, in the case of residential leases, the provisions of the Law of 21 June 2001 on the Protection of Tenants' Rights, Housing Fund of Local Communities and Amendments to the Civil Code (the “Law on Protection of Tenants' Rights”) apply, which significantly limit the tenant's freedom to terminate the lease by specifying certain cases in which the lease may be terminated at the tenant's initiative. At the same time, the landlord can terminate the lease relatively easily, which is why sometimes the lease includes provisions that limit or exclude the possibility of termination for a certain period of time (e.g., the first two years after the lease is concluded).

Irregular rent

Recently, an irregular lease agreement has become increasingly popular among landlords, as it provides additional protection of the landlord's interests. Under this form of lease, the property owner has the right to simplified eviction of the tenant if the tenant fails to fulfill the obligations related to the maintenance of the property or fails to pay the agreed rent. This is due to the fact that the tenant is obliged to file a voluntary performance statement with a notary, i.e. to vacate and hand over the occupied premises within a certain period of time. In addition, the tenant must indicate in the lease agreement the address at which he or she intends to reside in the event of eviction and attach to the agreement a statement from the owner of the property in which he or she agrees to the tenant's residence in the event of eviction. The mechanism for ensuring the interests of the landlord (who, unlike an institutional lease agreement, is an individual who does not carry out business activities in the field of housing rental) is manifested in the non-use of the judicial way of evicting the tenant (eviction occurs on the basis of the tenant's application) and the absence of the need to find a replacement apartment for the tenant.

It is worth noting here that for Ukrainian citizens covered by the Law of March 12, 2022 on Assistance to Citizens of Ukraine in connection with the Armed Conflict in the Territory of this Country (the so-called Special Law), the requirement to indicate alternative housing and provide a statement of the owner's consent to accept the tenant has been abolished.

An irregular lease agreement may be concluded in writing and for a fixed term, which, according to the law, may not exceed 10 years. The landlord is obliged to notify the relevant tax inspection of the conclusion of an irregular lease agreement.

To summarize, when entering into a lease agreement, the landlord bears a greater risk than the tenant. This is due to the fact that in a situation where the tenant ceases to fulfill its obligations, for example, to pay rent, the entire eviction procedure can take a very long time and expose the landlord to significant losses. For this reason, an irregular lease agreement is increasingly being used, which is not a worse form of lease for a bona fide tenant (it may be associated only with the need to pay a notary fee to certify the application), but provides greater security for the landlord.

Key elements of a housing lease agreement 

A residential lease agreement should contain several important elements to regulate the relationship between the landlord and the tenant and provide clarity and security for both parties. Here are the most important elements that should be specified in a residential lease agreement:

• place and date of conclusion of the agreement;
• Parties to the contract: the identification data of the landlord (homeowner) and the tenant must be indicated, such as name, surname, address of residence, PESEL number, etc.;
• data related to the subject of the lease: description of the dwelling (the leased dwelling must be described in detail, indicating the address, area, number of rooms, condition of the premises and other characteristic features of the real estate object);
• lease term: the agreement must specify the start and end date of the lease; it may be concluded for a fixed or indefinite period (with the possibility of termination in accordance with applicable law);
• Rent: the amount of the monthly rent, as well as the terms and methods of payment, should be clearly defined; the agreement may also contain information on any additional payments (e.g., utilities, contribution to the housing association for the maintenance of the building, etc.);
• obligations of the parties: the agreement should specify the rights and obligations of both the landlord and the tenant regarding the maintenance of the apartment, regulation of charges, timeliness of payments, any repairs, etc.;
• provisions on termination of the contract: the contract should contain information on the rules for termination of the contract by both parties, including the notice period and possible sanctions in case of breach of the contract;
• list of annexes (if they are attached to the agreement); 
• signatures of the parties to the contract.

It is advisable to include such items as:

• Concluding clauses: it is worth including clauses related to changes to the contract, agreements between the parties, applicable law, possible disputes and other important issues;
• liability for damages: it is important to indicate who will be liable for any damages caused to the property during the lease;
• security deposit (kaucja): if the landlord requires a deposit as a guarantee against possible losses or debts, this should be clearly stated in the contract.

An important element of any residential lease agreement is an acceptance certificate (protocol). Although it is not formally required, it helps to avoid many misunderstandings between the landlord and the tenant. An acceptance certificate is a document that accurately describes the actual condition of the premises and the status of electricity, gas, water and central heating meters. It must be signed by both parties to the transaction, i.e. the tenant and the landlord. It is best to attach photographic documentation to the report that shows the current condition of the apartment or house and meters. A reliable and accurate acceptance certificate plays a key role as an effective defense against potential claims or misunderstandings regarding the condition of the property.

Issues that are not specified in the lease agreement are governed by applicable law, in particular the provisions of the Civil Code and the Law on the Protection of Tenants' Rights. It should be remembered that ensuring that the content of the lease agreement is clear and precise helps to protect the interests of both parties and minimize the risk of future conflicts.

Lease agreement - amount of rent

One of the most complicated, but at the same time very important, clauses in a lease agreement is the rent clause. A detailed list of all amounts and an explanation of why and when they are to be paid is important in order to avoid potential conflicts between the landlord and tenant. Speaking of payments, it is worth mentioning the security deposit (kaucja), which often appears in the agreement. The obligation to pay it is an additional security that the landlord may require from the tenant. Usually, it is a certain amount of money that the tenant pays to the owner of the apartment or premises. In the case of a regular lease agreement, the security deposit may not exceed twelve times the monthly rent for the relevant premises. However, in the case of irregular or institutional leases, the landlord may require a security deposit equivalent to six months' rent from the tenant. The security deposit is intended to cover any damage, destruction, or late payments by the tenant during the lease. At the end of the lease term, if the apartment or property is in good condition and the tenant has fulfilled their financial obligations (no rent or other payments are in arrears), the deposit should be returned in full. However, if there are any damages or arrears, the landlord may deduct the relevant amount from the deposit and return the rest to the tenant. In the case of an institutional lease, the lessor may use the security deposit to compensate for uncovered expenses during the term of the agreement, and the lessee is obliged to replenish the deposit up to the agreed amount.

The rent for residential premises (czynsz) is usually set in cash, but it is not mandatory. The law also does not impose requirements on the method of payment. The same applies to the frequency of rent payments - the parties are free to formulate these provisions. In most cases, a residential lease agreement provides for monthly payments by bank transfer to the landlord's bank account or in cash to the landlord. In essence, the rent is a payment for housing, but the tenant may be required to pay additional payments for administrative expenses or services (czynsz administracyjny). The parties should clearly define the additional costs in the agreement, which usually consist of utility bills (media) (gas, electricity, water), heating, garbage collection and possibly internet and TV subscriptions. While rent is fixed, utility consumption can be variable. In addition, the tenant may be obliged to pay these fees directly to the accounts of the service providers, in which case the landlord must provide bills and receipts for these payments.

It is worth remembering to keep all receipts and payment confirmations. In case of any discrepancies, they may be necessary to clarify the situation. If the rent is paid to the landlord in a form other than a bank transfer, it is worth having a receipt of payment from the landlord to confirm that the payment was made in a certain amount and within a certain time frame.

Termination of the lease agreement

Termination of a residential lease agreement may occur for various reasons, but such a procedure always requires compliance with the provisions of the agreement and applicable law. At the same time, the possibilities of terminating a residential lease agreement depend on the type of agreement concluded. Thus, a residential lease agreement may be terminated in one of the following ways: 

• expiration of the contract (applies to leases concluded for a fixed term, including irregular and institutional leases). If the agreement is concluded for a fixed term and this term has expired, the agreement terminates automatically, without the need for a separate notice; 
• by mutual agreement of the parties. Regardless of the type of lease agreement (regardless of the duration of the lease), it can be terminated by agreement of the parties. The landlord and tenant may agree to jointly terminate the lease if both parties are interested in ending the lease earlier than the scheduled date. It is advisable to draw up a written document in which both parties agree to the early termination of the lease and set out the specific terms of the termination. The agreement may include such elements as the date of termination, return of the apartment keys, payment of utilities, etc.;
• unilateral termination of the lease agreement with prior notice: 
• in the case of a lease agreement concluded for an indefinite period, its termination with prior notice is generally based on the provisions of the agreement, but in the case of a lease of residential premises, the provisions on termination of the agreement should not contradict the provisions of the Law on Protection of Tenants' Rights. Thus, the landlord may terminate the agreement only in the cases specified in Article 11 of the Law, and the termination must be made in writing and must state the reason for termination (i.e., one of the grounds specified in the aforementioned Article 11). The Law does not provide for such restrictions on the identity of the lessee, so the options for termination of the agreement by the lessee may be more freely formulated in the text of the agreement. 
• In the case of a fixed-term lease and an irregular lease, the possibility of termination of the lease with prior notice by the lessee is limited to cases clearly defined in the provisions of the lease. For this reason, the tenant's notice of termination will need to specify the reason for termination. It should be borne in mind that if the agreement does not specify the situations that entitle the tenant to terminate the lease, the tenant will not have the right to terminate the agreement before the end of the term for which it was concluded. As for the lessor's right to terminate the lease, as in the case of the above agreements, they cannot contradict Article 11 of the Law on Protection of Tenants' Rights.
• a notice of termination of the lease agreement with immediate effect is possible at the initiative of the tenant if the defects in the leased premises are so serious that they pose a threat to the health of the tenant, his family members or persons hired by him, even if the tenant was aware of the defects at the time of concluding the agreement, as well as if at the time of commissioning the premises there is a defect that prevents its use in accordance with the agreement, or if such a defect arises later and, despite the lessor's notification of its existence, is not eliminated in a timely manner. It is worth noting, however, that defects or deficiencies that only limit the use of the premises do not entitle the tenant to terminate the lease agreement.

Termination of a lease agreement unilaterally can be a complicated issue for both the lessor and the lessee. It is important that the notice of termination is made in writing in two copies (one for each party). The notice must be delivered to the other party in such a way that it can be familiarized with its contents. Therefore, it is best to deliver the notice in person, while requesting confirmation of its receipt, or send the notice by registered mail with acknowledgment of receipt to the correspondence address specified in the lease agreement. It should also be remembered that the termination of the lease agreement must contain the following: date and place of execution of the document; personal data of the parties to the agreement (tenant and landlord); information about the leased property (address of the premises), legal grounds for termination; justification for termination; date of termination of the agreement, which follows from the notice period; legible signatures of the parties to the agreement.

It is important that the lease agreement is terminated in accordance with the provisions of the agreement and applicable law.

Practical tips for signing a lease agreement

• In general, it is important to remember to include as many issues as possible in the text of the agreement, which will help to avoid or clarify any disputes between the parties, if they arise.
• An important element in a lease agreement is a clause that specifies the possibility of termination of the agreement. 
• It is worth remembering about the acceptance certificate, which is an important document and is useful for both the tenant and the landlord.
• The agreement should clearly define who, if necessary, is responsible for what repairs in the apartment.
• When you change housing, you should leave your current address (contact phone number) with the landlord for communication. If you continue to receive correspondence at the old address, the landlord will be able to notify you of this.
• It is important to read the lease agreement carefully before signing it, and if you have any doubts or uncertainties, you should consult a competent person, such as a lawyer.
• It is important to remember that a lease agreement is negotiated between the lessee and the lessor. This means that no one is obliged to immediately accept the first proposed version of the agreement. There is always an opportunity to negotiate the terms of the agreement, which helps to obtain more favorable terms.