Author: Michał Krawczyński
It seems easy to rent a home without a written contract. There are a lot of landlords and tenants who decide to skip this part to avoid unnecessary paperwork. However, it can occasionally result in major issues. Both sides might find it difficult to assert their rights without it. Such a rental can become a major problem due to disagreements, legal issues, and financial loss.
Is a Verbal Contract Lawful?
Verbal rental agreements are legal in Poland, but they carry risks. It is difficult to prove what was agreed upon when a problem arises. Tenants and landlords may dispute over rent, deposits, or repairs in the absence of a contract. Courts also favor written agreements. Therefore, verbal agreements provide little protection, even though they are permitted.
Hazard to Landlords
When they rent without a contract, landlords are taking significant risks. Among the issues is eviction. Tenants are protected by Polish law, making their eviction difficult. It is difficult to prove the terms in the absence of a written agreement. Landlords may have to deal with protracted legal disputes if a tenant refuses to vacate or stops paying rent.Another issue is property damage. A landlord might not be able to get reimbursement for repairs if a tenant causes damage to the house. In order to evade taxes, many landlords also rent without a contract. However, rental incomes are examined by tax offices. A landlord might be subject to fines, back taxes, and even legal repercussions if they are discovered.
Risks for Tenants
Tenants also face huge risks when renting without a contract. A landlord may raise the rent suddenly or demand extra payments. Without a contract, tenants have little power to stop this. Also, they have fewer protections against eviction. A landlord may decide to end the rental at any time, leaving the tenant with little time to find a new place.
Another issue is security deposits. Without a written lease, a landlord might refuse to return the deposit. Without proof of payment, tenants may not be able to get their money back. A written contract is the best way to avoid these risks.
Tax Problems for Landlords
Some landlords rent without a contract to avoid paying taxes. They want to earn a bit more money by doing it illegally. But this risky. In serious cases, tax fraud charges may apply. Registering rental income protects landlords from legal trouble and lets them claim tax deductions for repairs and maintenance.
No Legal Protection for Both Sides
Without a contract, both landlords and tenants lose legal protection. If rent is not paid, property is damaged, or problems arise, there is no clear proof of the agreement. Courts rely on written contracts to settle rental disputes. Without one, proving a claim is difficult.
Landlords may lose months of unpaid rent if a tenant refuses to pay and does not leave. At the same time, tenants risk losing deposit or being thrown out of the property. Without a clear agreement, both sides can lose money and face legal trouble.
Eviction Problems
Evicting a tenant in Poland takes time, even if a written contract was signed. Without one, it gets even harder. If a tenant refuses to leave, landlords must go through a long court process to get an eviction order. Some laws, such as the winter eviction ban, can delay it for months. This means landlords could lose months of rent before they even can take any action.
How to Keep Yourself Safe
A written rental agreement is the best defense against such issues. Verbal agreements are not always clear. The terms, security deposit, rent, and other pertinent details should all be spelled out in detail in the contract.
Rental agreements should be registered by landlords to prevent tax problems. Rent and deposits should never be made by tenants without a written contract. Such easy actions safeguard both parties and aid in averting future problems.
Conclusion
Renting without a contract in Poland may seem simple, but it can cause big problems. Landlords and tenants can face legal disputes, money losses, and tax penalties. A written lease agreement prevents misunderstandings and protects both sides. Taking the time to sign a contract can save a lot of trouble in the future
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