Use of Poland’s Civil Code point 685.1

Last week,  the Polish daily Gazeta Wyborcza published an article about an unnamed tenant in an unnamed building in central Warsaw whose landlord had suddenly jacked up its rent by 60%. The only way not to pay would be to leave.

Turns out, they’ve decided to pay, and to fight it. And it didn’t take too much digging to find out the name of the company in question. What makes unilateral rent rises possible is a previously obscure piece of Polish law  [to be specific: Civil Code point 685.1] which the building’s landlord claims allows landlords to “terminate” the original rental rate. Really??!? Bet that’s news to a few tenants around town.

The owner of the building is not an international fund, but rather a separate company, and as we’ve been informed that the matter is currently a matter of arbitration, we’ve removed our original post and will wait to see how it all turns out before commenting further.

In the meantime, we would still like to know how widespread this practice is, as the law clearly has serious implications for owner/landlord relations. We welcome any views on this, of course.

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