Difference Between Najem Okazjonalny and Najem Instytucjonalny

Difference Between Najem Okazjonalny and Najem Instytucjonalny

In Poland, there are several types of rental agreements regulated by law: Najem Okazjonalny (occasional lease) and Najem Instytucjonalny (institutional lease). Both are signed before a notary and allow for a simplified eviction procedure, but they have different conditions, limitations, and target groups.

Short definitions

• Najem Okazjonalny — a rental form for private individuals renting property outside business activity. Can be signed for up to 10 years.
• Najem Instytucjonalny — a rental form for entrepreneurs (companies or sole traders) engaged in rental activity. Can be signed for any period.

Key differences

Pros and cons of Najem Okazjonalny

• Pros: higher trust from landlord, fixed terms, protection from sudden changes.
• Cons: requires relocation address, notary costs, less flexibility for tenant.

Pros and cons of Najem Instytucjonalny

• Pros: no relocation address required, suitable for long-term rental, clear legal framework.
• Cons: mainly used by companies, often stricter terms, possibly higher deposit.

When to choose Najem Okazjonalny

• When the landlord is a private person.
• When a fixed-term contract up to 10 years is needed.
• When tenant can provide relocation address.

When to choose Najem Instytucjonalny

• When the landlord is a company or entrepreneur.
• When rental is planned for more than 10 years.
• When providing a relocation address is not possible.

Conclusion

Najem Okazjonalny and Najem Instytucjonalny both offer simplified protection for landlords but differ in purpose and requirements. The choice depends on landlord status, rental duration, and willingness to meet formal conditions.