Can occasional rental be an opportunity? - Material Release - October 2012.

 

Lease, is intended to be a flexible form of meeting housing needs. Since the real estate market was released from state regulations, increased (and still growing) the number of units that do not need to meet the personal needs of the owners, and have been built or bought just to lease. Paradoxically, the more difficult market, the more restrictive conditions to qualify for   mortgage, the tenants demand is increasing. Housing needs are still very large, the time to satisfy them is increasing constantly and you also have to be prepared for sacrifice,when your own contribution is collected. During this period you have to live somewhere, so the popularity of rent increases. However, the rental market has its other face - the crisis. Clear there is a large supply, and sometimes oversupply – lot to many offers.. You can see clearly increase in  "holiday" rental offers, which after the end of the season, transfers the rental market and is present until the end of the year.  Unfortunately, the demand in this segment is shrinking already. Poor mobility, low active labor market and employers, and eventually decreasing number of students cause that looking for tenants increasingly requires more time and patience..

Overcoming market barriers is not the only trouble of the landlord. No less of a problem is to protect their own interests against the unreliable tenant. Determining lease conditions is the responsibility of the parties. As part of the compromise, they determine the duration of the contract deadline for delivery of premises and the inventory, the amount of rent, the way and terms of payment. They agree also, in general, by implication, that they will respect their rights and obligations. The agreement continues until one of the parties does not want to unilaterally change the conditions. Then, in the absence of an agreement or a breach of the terms, there is a need to terminate the lease. If the tenant is serious and respectful of the law, he should move out of the apartment. However, if the tenant does not do so voluntarily, the owner has no choice but to bring the case to court to empty premises. Since the current regulations in a much greater extent protect the interests of the tenant than the landlord (the Act on the Protection of the rights of tenants, municipal housing stock and amending the Civil Code dated June 21, 2001 Journal of Laws of 2001. No. 71, pos. 733), often you have to wait long for a a social flat and it  can be a real drama for the landlord. In the absence of the opportunity to provide alternative or social accommodation, is helpless even bailiff. The deposit, which may not be greater than the sum of the annual rent, and in practice it rarely exceeds its three times, it can be quickly melting security. Then only loss, frustration and deadlock, which will be hard to leave.

Since the beginning of 2010, as amended by the Act, there was hope for the unlucky landlords – occasional rental. This agreement provides both the freedom to rent increases, which in the current situation, it is not too popular, but also facilitates the efficient evacuation of the premises by not reliable tenant .if he cannot move out of the premises to the place designated by him, by way of eviction he can be led out into the street. But to the occasional rental took effect must meet the following conditions:

 

the agreement must be concluded in writing,

the agreement must be concluded for a fixed period, but not more than 10 years,

the agreement must include a statement of execution by the tenant, made ​​in the form of notarial deed

the tenant must state a place, where he will be able to move in the event of eviction,

the owner of that place must declare in writing that he agrees, so in case of the tenant eviction takes him under its roof.

 

In addition, the landlord must be a natural person not established in the lease and the contract will be registered with the tax office.

Simple, but not quite. The fundamental problem lies not only in indicating the address to which you can put the tenant, but also the confirmation from the owner of the premises. Here comes the main problem - you need to find someone who will agree to.

Because all of the above conditions must be met together, occasional rental ceases to be such an obvious idea, protecting the interests of the landlord. Even if the tenant will be ready to meet the expectations of the owner of the apartment, they have yet to find someone who will take the risk to their adoption under his roof. This makes the occasional rental rarely used in practice. In this case, we return to the basic model, contract and again the question arises a bout the effective protection of their interests. Classic methods remain: deposit, transfer and receiving protocol, or environmental history and questions about sources of funding.

Grzegorz Dobrowolski

Expert Polish Real Estate Federation

 

source:

http://www.pfrn.pl/page/1402