How to rent a flat in Poland? 5 hints for flat owners
O czym przeczytasz w tym artykule?
1. Set a reasonable price
Before you place your ad, think carefully what price you expect. We recommend that you checked other ads from the city where your flat is located. When you set the price, take into an account three basic factors: the flat size, location and standard. Decide if you want to negotiate the price or whether the price is to be fixed.
2. Draft a good ad
If you decide to rent your flat individually, take your time to prepare an ad. It seems trivial, but the research shows that it is not obvious to everyone how a good ad should look like. On the Internet you can find examples of ads where… the address is missing. Well-prepared information should comprise:
- an address– it does not have to include a building or a flat number, but it is recommended to add the street name, not only the district (many people forget that!). Sometimes it is worth giving extra details regarding the location – especially if you rent a flat which is at a really long street.
- a number of rooms and the flat layout– write how big your flat is, how big the rooms are, whether it is a well-planned flat or with connecting rooms; add information about available furniture and equipment (a washing machine, a fridge, a microwave, an oven);
- information about the building– there are people who prefer tenements instead of panel blocks of flats… and vice versa;
- information about tenants– if you rent only a part of the flat, e.g. one room, write who lives in the other rooms;
- a type ofheating – it influences costs and comfort of living – a crucial factor especially for students;
- an exact price for the flat– indicate the amount of rent and inform about additional charges to be paid by the tenant. Estimate the value of additional costs. Write whether you want a deposit, if yes – then describe its form;
- photos– take pictures of the flat, they will increase its popularity;
- contact details– do not forget to give your phone number or e-mail address; we recommend to write which contact form and time you prefer.
A well-prepared ad saves your time and nerves of your tenants (and yours as well). It allows to avoid many repetitive questions and phone calls from people who seem falsely interested in your flat. Remember, always write the truth Do not try to “tweak” the flat’s description, hoping that the interested tenant will accept the slightly worse conditions and stop looking for something better.
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3. Sign a rental agreement
It is an absolute must. Many flat owners prefer to rent their flats without paying taxes, which allows to save a few hundred PLN monthly. But they risk a lot – not only because of an inspection by the tax office.
| Flat rental – yes, but only with the rental agreement
You cannot forget about protection (for both parties) ensured by the rental agreement. A person who, instead of buying, decides to rent a flat feels more secure. The flat owner cannot just tell someone who pays the bills to move out, because the notice period specified in the agreement has to be complied with. It also refers to the other party – if tenants want to move out, they have to keep the notice period (usually two weeks or a month). It may turn out that the rental agreement will make a tenant participate in tax imposed on the flat owner. Even though it is still a much smaller burden in comparison to the stress of a hectic flat search, it sometimes happens when tenants have not signed the rental agreement. (Hanna Hylińska, Personal Finance section, Bankier.pl) |
The agreement allows to avoid many misunderstandings, especially those of a financial nature. The notice period will save you from the breaks in rental. Moreover, regular income at your account will not make a bank or the tax office suspicious.
4. Take care of your flat and… tenants
Remember that it is up to you whether tenants will look after your flat and will be happy to extend the agreement. Do not forget about periodical maintenance works (such as changing a shower hose or window seals). Try to limit visits to your flat as much as possible – let your tenants feel comfortable. It will surely influence your relations with them and increase their satisfaction level. And you will save time that would be spent looking for new tenants.
5. Decide whether to hire an agent
If you decide to hire an agent, you do not need to draft an ad, pick up phone calls and show the flat. Unfortunately, the agent will charge a commission for his work. Usually the commission is paid by the tenant, but it may decrease the number of interested people – especially when someone does not want a long-term rent. If you decide you do not need the agent, you have to pick up calls and show the flat. Everything depends on you and the amount of your free time.
| What tax is charged?
A flat owner can select two forms of taxation. By default, the legislator applies taxation in line with general principles of law, i.e. according to the tax scale. In such case, tax is imposed on the difference between income and tax deductible expenses (which include expenses related to flat maintenance, property tax, etc.). Pay attention that e.g. renovation will not be treated as a tax deductible expense because its aim is to increase the asset value of (in this case, the flat) or improve it. The next interesting form of taxation is a tax on registered income without deductible expenses. If you decide on such form of taxation, you have to inform your tax office about it. For this type of income, the 8.5% rate is applied. The difference is that the whole income is taxed without the possibility of lowering it by tax deductible expenses. Which taxation form to select? There is no easy answer. First of all, you need to check whether application of the general principles of law means that your total income will exceed the first tax threshold considerably. If it does, then remember that when it exceeds 85.5 thousands PLN, you will be charged with tax at a rate of 32%. Unfortunately, you need to take a calculator and check whether the tax on registered income without deductible expenses will be better for you. Although you cannot lower your income by tax deductible expenses, it may turn out that they would not be able to compensate the sum you have to pay after being qualified to the second tax threshold. (Łukasz Piechowiak, Analyst of the Company and Taxes section, Bankier.pl) |
