Tenancy bill set for Tribunal
Landlords and rental agencies have savaged the Sejm's recent approval of a bill that would prohibit the eviction of tenants in arrears onto the streets. They denounced the move as an attack by the state on the rights of private property owners. Industry observers predicted the president would send the bill for consideration by the Constitutional Tribunal.
If the bill becomes law, it would place further strain on prospective tenants and the struggling apartment construction market, as a consequence of almost every politician looking to boost sagging approval ratings.
"It removes one of the fundamental ownership rights: the right to evict people who didn't pay," said Tadeusz Robiński, a landlord and owner of properties in Warsaw and Poznań. "In this case you can't evict them. So why should they pay if they have financial problems?"
Non-paying tenants, he said, could live gratis for almost as long as they want.
"This is a big problem," he said.
Real estate agents are also up in arms.
"I can only evaluate it from the point of view of the real estate broker," said Grzegorz Dobrowołski, a member of the Polish Real Estate Federation and broker at Dobrowołski and Prybulec real estate agency. "Taking into account the last few years, there has been an erosion of ownership rights. The position of the owners is weakening."
He pointed out that there are already restrictions that were put in place about two years ago stipulating the types of tenants landlords are not allowed to evict, such as certain classes of the disabled and those with children.
He added that this most recent bill connotes ignorance on the part of politicians.
"It's not correct to protect tenants by hurting the owner," he said. "Strict rules put owners in weaker positions than tenants."
The state should bear the burden of poorer dwellers, critics of the bill say.
"Private owners shouldn't have to pay for it," Dobrowołski said.
Flat owners are already taking action to protect their properties. As a result, flat hunters will have to jump through more hoops to secure rental agreements.
"Landlords will demand much greater deposits," Robiński said. "The law does allow the right for deposits. It's going to make it more difficult for the poor bloke on the street.
"I am definitely going to ask for bigger deposits, more documentation. Tenants are going to have to have proof of where they work." There's nothing to prevent landlords from asking for full-year deposits, Robiński said. "And someone that doesn't have a job - forget it."
On a macro level, and the most worrying bit for the government that will enforce such a law is that the legislation would damage the housing construction market.
"There is a need to get more flats built," Robiński said.
But now potential flat buyers are going to think twice about investing in housing, and may opt to make a profit elsewhere.
Dobrowołski added that investors looking to buy or construct flats with the intention of renting them typically seek some sort of mortgage to finance the projects. And rental payments are the key revenue stream used to repay their loans. Without the right to evict delinquent tenants, owners could lose their property, and lending banks could be burdened, too.
"This is damaging - even to banks," Robiński said.
If the bill becomes law, it would place further strain on prospective tenants and the struggling apartment construction market, as a consequence of almost every politician looking to boost sagging approval ratings.
"It removes one of the fundamental ownership rights: the right to evict people who didn't pay," said Tadeusz Robiński, a landlord and owner of properties in Warsaw and Poznań. "In this case you can't evict them. So why should they pay if they have financial problems?"
Non-paying tenants, he said, could live gratis for almost as long as they want.
"This is a big problem," he said.
Real estate agents are also up in arms.
"I can only evaluate it from the point of view of the real estate broker," said Grzegorz Dobrowołski, a member of the Polish Real Estate Federation and broker at Dobrowołski and Prybulec real estate agency. "Taking into account the last few years, there has been an erosion of ownership rights. The position of the owners is weakening."
He pointed out that there are already restrictions that were put in place about two years ago stipulating the types of tenants landlords are not allowed to evict, such as certain classes of the disabled and those with children.
He added that this most recent bill connotes ignorance on the part of politicians.
"It's not correct to protect tenants by hurting the owner," he said. "Strict rules put owners in weaker positions than tenants."
The state should bear the burden of poorer dwellers, critics of the bill say.
"Private owners shouldn't have to pay for it," Dobrowołski said.
Flat owners are already taking action to protect their properties. As a result, flat hunters will have to jump through more hoops to secure rental agreements.
"Landlords will demand much greater deposits," Robiński said. "The law does allow the right for deposits. It's going to make it more difficult for the poor bloke on the street.
"I am definitely going to ask for bigger deposits, more documentation. Tenants are going to have to have proof of where they work." There's nothing to prevent landlords from asking for full-year deposits, Robiński said. "And someone that doesn't have a job - forget it."
On a macro level, and the most worrying bit for the government that will enforce such a law is that the legislation would damage the housing construction market.
"There is a need to get more flats built," Robiński said.
But now potential flat buyers are going to think twice about investing in housing, and may opt to make a profit elsewhere.
Dobrowołski added that investors looking to buy or construct flats with the intention of renting them typically seek some sort of mortgage to finance the projects. And rental payments are the key revenue stream used to repay their loans. Without the right to evict delinquent tenants, owners could lose their property, and lending banks could be burdened, too.
"This is damaging - even to banks," Robiński said.
