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Apartment Rental Contract: How to Draw Up?

The conclusion of a contract is a key stage of any real estate transaction. It is important to take into account all the details and draw up the document correctly, otherwise the transaction may be invalid and lead to conflicts between the parties.

How to Draw Up an Apartment Lease Contract?

A residential lease contract is a reliable guarantee for both the leaseholder and the leaser at the legislative level. It will save both sides from monetary and moral losses, such as damage to real estate and the accumulation of debts on utility bills, as well as a sharp increase in the cost of rent and forced eviction for no good reason.

Drawing up a rental agreement for an apartment in Poland

Despite the fact that the lease contract is an important legal document, it will not be difficult to prepare it yourself. A standard residential lease contract should contain the following items:

  1. The parties to the contract. The name and personal data of the leaseholder and leaser (first name, last name, registration address, series and number of the identity document).
  2. The subject of the lease. Description of the object that is provided for rent (address indicating the city, street, house and apartment numbers, number of rooms, equipment of the apartment).
  3. Declaration of the owner. The leaseholder is obliged to attach a certificate stating that he is the owner of the rented premises.
  4. Rights and obligations of the parties.
  5. The amount of rent, utility fees, as well as the timing of payments.
  6. The amount of the security deposit. For the owner of the apartment, the pledge is a guarantee that the leaser will fulfill all obligations under the contract and will save them from unexpected consequences in the form of damaged property or a sudden departure of the tenant.
  7. The term of the contract. If the contract is concluded for a certain period, it is necessary to specify the first and last day of the contract.
  8. The notifying period. In case of eviction of the leaser from the apartment, the leaseholder is obliged to notify them in advance. The term specified in the contract cannot be violated, according to the Law on the Protection of Tenants' Rights.
  9. Terms of termination of the contract.
  10. Date and place of conclusion of the contract.
  11. Signatures of the parties.

Any lease contract for residential premises must be supplemented with an acceptance and delivery certificate, which determines the condition of the premises and the indicators of meters for heating, gas, water, electricity.

Depending on the wishes of the parties, this list can be supplemented. For example, the leaseholder may include in the contract the terms of payment by the leaser of compensation for the damage caused, information about additional expenses incurred by the leaser in connection with the repair or purchase of new equipment, etc.

When concluding a lease contract, it is also important to pay attention to the following details (read more in the article "What to Keep in Mind When Renting an Apartment"):

  • Equipment of the apartment. The leaser must make sure that the apartment really has the equipment and furniture prescribed in the contract. If the living space does not meet the stated criteria, the leaser has the right to demand to fill in the missing headset or terminate the contract.
  • Utility bills. Payment for utilities can be made in two ways: by transferring a fixed amount by the leaser to the leaseholder, or by paying for services by the leaser himself on receipts provided by the leaseholder.
  • The presence of a basement. The leaser should pay attention to whether the right to use additional premises is prescribed in the contract: a basement or a storeroom.
  • Termination of the contract. The leaseholder has the right to prescribe in the contract the conditions under which the contract can be terminated before the expiration of the lease. The reasons may be the following: the use of the premises for other purposes; damage to the premises and equipment; improper behavior that causes discomfort to other residents of the house; damage to objects intended for shared use by residents of the house. Before termination of the contract and eviction, the leaseholder is obliged to send a written notice to the leaser.

The lease contract signed by both parties is registered with the tax service by written notification. Registration is free of charge and does not require additional tax deductions.

Conclusion of a lease agreement

What Are the Types of Lease Contracts?

The real estate market offers several types of contracts, thanks to which the leaser and the leaseholder can conclude a deal and take into account all wishes. There are 3 types of lease contracts:

  • Civil law
  • Occasional
  • Institutional

Each contract is regulated by the Civil Code and the Law on the Protection of Tenants' Rights, and also contains the main terms of the transaction: the rights and obligations of the leaseholder and leaser.

However, there are significant differences between the contracts, which it is important to study before entering into a deal. They relate to the terms of the lease, the area of the rented premises, the terms of termination of the contract, as well as persons who can enter into a contract. What is the best lease contract to choose when renting housing?

Civil Law Lease Contract 

A civil law contract is also called an ordinary or "traditional" one, since it has been used for many years. It is quite simple to compile, does not require a written confirmation and notarization.

Key features of a conventional lease contract:

  • Both an individual and a legal entity can act as a leaseholder and leaser.
  • The term of the contract: for a certain period or on an indefinite basis.
  • The maximum amount of the deposit: cannot exceed the amount of the monthly payment by more than 12 times.
  • Forced eviction: possible only with the provision of social housing.
  • Change in the rental price: it is not possible unilaterally before the expiration of the contract.

The presence of the last two points is the main difference between a civil lease contract and other types. Thanks to them, the leaser receives comprehensive protection: he cannot be evicted without a good reason if he does not own his own home, and also he does not need to worry about a sudden and systematic increase in the cost of rent.

A civil-law type lease contract is beneficial for the leaser, but is in much less demand among leaseholders, especially when it comes to renting housing to foreign citizens.

Occasional Lease Contract

The occasional lease contract is gaining more and more popularity among leaseholders. Its essential difference from a civil law contract is that the leaseholder is obliged to indicate the place of residence where the leaser can move in case of termination of the contract. In addition to the reserve address, you must attach to the contract:

  • The leaser's statement, according to which he is subject to eviction on the date specified by the leaseholder;
  • The statement of the owner of the reserve housing that they agree to accept the leaser under their roof.

Such a contract must be drawn up exclusively in writing and notarized. The conclusion of an occasional lease contract must be reported to the tax inspectorate within 14 days from the date of signing the contract, otherwise its terms will be invalid. In addition, this type of contract has its own specifics.

 Key features of an occasional lease contract:

  • Only a legal entity can act as a leaseholder, and an individual can act as a leaser. Subrental under such a contract is unacceptable.
  • Validity period: limited, the maximum period is up to 10 years.
  • The maximum amount of the deposit: cannot exceed the amount of the monthly payment by more than 6 times.
  • Forced eviction: the leaser is obliged to leave the apartment at the request of the leaseholder and move to the reserve address specified in the contract.
  • Change in the rental price: the cost can be changed according to the conditions prescribed in the contract.

Thus, occasional lease contracts are preferable for leaseholders. The leaser also should not be afraid that they will be forced to pay more or will be evicted to the street. Before signing such a contract, you should make sure that the leaseholder is reliable.

Institutional Lease Contract

An institutional lease contract is a form of an occasional contract where legal entities can act as leasers. Like the two previous types, this contract has its own distinctive features.

Key features of the institutional lease contract:

  • The leaseholders may be presented by entrepreneurs who use the premises as an economic activity. Both individuals and legal entities can act as leasers. Sublease is acceptable in this case.
  • Validity period: limited, but the law does not set a mandatory time frame. The contract can be concluded for both 10 and 100 years.
  • Forced eviction: possible, but without provision of reserve housing in case of termination of the contract.
  • Change in the rental price: the cost can be changed according to the conditions prescribed in the contract.

Like the occasional, the institutional lease contract is concluded exclusively in writing and requires notarization. The costs of notary services are usually covered by the owner of the property.

How to Arrange the Termination of the Lease Contract?

Termination of the apartment lease agreement

The procedure for termination of the contract is in many ways similar to the conclusion and is executed in writing. The document must contain the following information:

  1. Date and place of the contract.
  2. Information about the party terminating the contract.
  3. Information about the party with whom the contract is terminated.
  4. Grounds for termination of the contract with indication of the article of the Civil Code.
  5. Description of the rental subject (apartment address).
  6. Date of termination of the contract.
  7. Signature of the party terminating the contract.

If both parties agree to terminate the contract, then the process is quite simple. In case of disagreement of one of the parties, the conflict can be resolved through the court.

Thus, it is safe to say that a residential lease contract is a guarantee that your real estate and the right to live in a rented apartment will not suffer.

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Lada Isachenka
Real estate broker at Chekashoff-Estate
To broker's page
Lada Isachenka

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