Rent increase step by step — how to do it legally

Rent increase step by step — how to do it legally

Rising property maintenance costs sooner or later force a landlord to raise the rent. The catch is that increasing the rent of a residential dwelling in Poland is a formalised process — it is governed by the Act on the Protection of Tenants' Rights, and a formal mistake (an increase announced by text message, or effective "from next month") simply makes it invalid. This guide walks you through the whole procedure step by step.

The legal basis: terminating the current rent level

A rent increase is carried out through a so-called notice of termination of the current rent level (Article 8a of the Act on the Protection of Tenants' Rights). The landlord does not impose an annex on the tenant but gives notice on the existing rate and proposes a new one. The key requirements:

• the notice must be given in writing, on pain of nullity — an e-mail or text message is not enough,
• the notice period is three months, effective at the end of a calendar month, unless the parties agreed a longer period in the lease,
• the increase takes effect only after this period has elapsed.

Example: a letter delivered to the tenant on 12 June results in the new rate applying from 1 October (three full months: July, August, September).

Limits and the duty to justify

The Act gives tenants particular protection against increases that push the annual rent above 3% of the dwelling's reconstruction value. The reconstruction value is the usable floor area multiplied by a conversion index announced by the voivode for the given region.

• If the increase leads to rent above this threshold (or is made from a level already exceeding it), the tenant may demand in writing the reason for and calculation of the increase — the landlord then has 14 days to reply in writing, again on pain of the increase being invalid.
• Such an increase must be justified — for instance because the current rent does not cover the costs of maintaining the dwelling or provide a fair return on capital.
• Increases that keep the rent at or below 3% of the reconstruction value do not require this justification.

How often can rent be raised

Rent may not be increased more often than every six months. The period runs from the day the previous increase took effect. The limit applies to rent and other charges for using the dwelling — it does not cover charges independent of the landlord, such as utility prices, which rise outside this procedure.

Fixed-term leases — mind the clauses

Under a fixed-term lease an increase is possible only if the lease itself provides for it — for example through an indexation clause (annual adjustment by the inflation index) or an express right to change the rent under the statutory rules. If the lease is silent, the rent stays fixed until the end of the term. That is why an indexation clause is worth including at the signing stage.

The procedure step by step

• Step 1: check the lease. Is it fixed-term, and does it allow increases? Did the parties agree a longer notice period for the rent level?
• Step 2: check the date of the last increase. At least six months must have passed since the previous one took effect.
• Step 3: calculate the new rate. Compare it with the 3% reconstruction-value threshold — if you exceed it, prepare a solid calculation in advance (maintenance costs, tax, insurance, renovation fund, return on capital).
• Step 4: prepare the letter. Identify the dwelling, the current and new rent, the effective date and the basis (termination of the current rent level). Sign it by hand.
• Step 5: deliver it effectively. In person against written acknowledgement on a copy, or by registered mail with return receipt. The delivery date starts the notice period.
• Step 6: await the tenant's response. The tenant may accept the increase, challenge it in court (where the landlord must prove it is justified), or refuse it — in which case the lease ends upon expiry of the notice period.
• Step 7: update your records and payments. From the effective date, check that payments match the new rate. If you manage your rentals in an app such as Brokik, update the rent amount so that monthly payments and reports reflect the new figure.

The most common landlord mistakes

• an increase announced orally, by e-mail or text message — invalid,
• an increase "from next month" — ignoring the three-month notice period,
• a second increase before six months have passed since the previous one,
• failing to answer a calculation demand within 14 days,
• raising the rent under a fixed-term lease that does not allow it,
• no proof of delivery of the letter to the tenant.

Summary

A lawful rent increase requires written notice of the current rate with a three-month period ending on the last day of a calendar month, a gap of at least six months between increases, and — for rates above 3% of the reconstruction value — readiness to present a calculation at the tenant's request. For fixed-term leases, the basis is an appropriate clause in the agreement. A well-planned, correctly delivered increase rarely ends in a dispute — most problems stem from formal errors that are easy to avoid.

This article is for information purposes only and does not constitute legal advice. For individual matters, consult a lawyer.