What is an institutional rental agreement?
Institutional lease is a relatively young form that was made available to Poles only in September 2017. The very idea of an institutional lease agreement recommends simplifying the rules of renting premises for all kinds of entrepreneurs.
Institutional lease, however, is subject to certain rules. The most important of these is the fact that the lease cannot be made by a private tenant who does not run a business. Another issue is the fact that institutional rental can only be used for housing purposes. As regards the rental of commercial premises, the provisions of the Civil Code continue to apply.
Contract and deposit in case of institutional lease
In the case of an institutional tenancy, the process of eviction of a tenant after the end of the contract has been simplified to the maximum. This means that we have full rights to immediately evict a tenant who is no longer subject to an institutional lease agreement. We can also apply our own rules for increasing the rent in the contract.
An institutional lease agreement is always for a fixed period. The duration of the contract is determined by both persons who, by signing the contract, agree to the designated rental period. The contract itself can be signed for any period, but failure to write it in a standard written form may be invalidated.
Benefits of Institutional Lease
The main aspect of the benefits lies with the landlords. Thanks to the institutional lease, they not only gained simplified terms of concluding contracts, but also received the necessary rights to their premises. Until now, many entrepreneurs were afraid of running a strictly rental business. The main aspect was the problem of getting rid of tenants in the case of various types of problems. However, this aspect was very well resolved in institutional leases, which is to convince a larger group of entrepreneurs to register their lease agreements.
As for the benefits for tenants, it will undoubtedly be the expansion of the market with a mass of new offers, which should open up the market to greater price competition for those interested.