Although the law seeks to protect both landlords and tenants, both groups consider existing solutions to be insufficient – for completely different reasons. In response to the demands made, the Ministry of Development and Technology decided to organize a round table around which representatives of property owners and tenants will try to work out a joint proposal for legal changes. However, this may be difficult, because both sides consider themselves injured and would like to negotiate reforms that would be beneficial to them from the government.
Owners of flats for rent want to change the tenancy law
Landlords' demands are well summed up in the petition to Prime Minister Morawiecki, which was sent last year by the United Landlords Movement: the right to terminate the contract in the event of a 14-day delay in payments, the statutory right to verify the tenant, more efficient bailiff enforcement and eviction, fast track in the court for pending on this matter.
In the event of delays in court proceedings, the State Treasury would be obliged to pay compensation to the owner for the time when he could not use the property. According to landlords, such reforms would put an end to the current state of affairs, in which the state, instead of protecting citizens against homelessness, forces private apartment owners to do so.
Landlords and tenants demand their rights
Although landlords already believe that they are less protected in Poland, tenants demand further strengthening of tenancy rights and more effective enforcement of the existing ones. Tenants' movements argue that the police currently have no means to stop the so-called "wild evictions" carried out by landlords without court permission.
It may seem that the postulates of these two social groups are in opposition. However, as Piotr Kula from Rendin says, “It's not about landlords being better protected than tenants. The point is that the law secures the performance of the contract by both parties.”
The reforms could have a much wider impact on the rental market than it seems at first glance. “According to the Central Statistical Office, we have 1.8 million vacancies,” observes Piotr Kula. "I think a million of that could hit the market and reduce rents, but their owners are held back by fear."
A survey conducted by Rendin in 2022 showed that as many as 70% of landlords experienced problems with the tenant:
On average, they lose as much as 9 thousand. PLN, which is much more than the standard deposit.
In extreme situations, owners lost up to 150,000. PLN and waited for the recovery of the property for 17 years.
The current law does not provide protection against such situations, so some investors prefer to invest their capital in the real estate market without exposing themselves to the risk associated with renting.
How to secure a lease before the law changes?
At Rendin, we constantly monitor the current situation on the rental market and do everything in our power to maximize the level of protection available to both parties to the contract with our services. Thanks to our method of alternative to the deposit, landlords enjoy protection up to 10 times the rent, and tenants do not have to worry that the landlord will demand coverage of the cost of fictitious damage.
The article entitled "Round table for owners and tenants" was originally published in the newspaper Dziennik Gazeta Prawna. Full article is available here.