CMS Expert Guide on Private Rented Sector leases in CEE

PRS project legislation gives landlords the edge

Appropriate and fair regulations regarding leases and the relationship between the landlord and tenant is necessary for the further development of PRS in CEE markets, as clear rules and the avoidance of ambiguities is beneficial for both investors and tenants. Even though PRS is a new phenomenon in CEE, all jurisdictions appear to be friendly towards PRS investors. Residential leases in CEE that can be used in PRS projects tend to offer a higher level of protection to tenants compared with commercial ones, but they are not usually onerous for landlords. In addition, it is worth noting that special investor-friendly regulations concerning PRS projects have been implemented in recent years. For example, Poland introduced the “institutional lease” that can be used only for apartments rented as a business activity, which is much more favourable towards landlords than the standard residential lease.