Renting a flat is a common way of meeting housing needs, based on mutual trust and equivalent entitlements. The situation becomes drastically complicated when the tenant stops paying, and the civil law route (lawsuit and enforcement) proves long and ineffective. However, criminal law comes to the rescue. A recent ruling by the District Court for Śródmieście in Warsaw shows that a tenant who intentionally fails to pay can be convicted of fraud.
💡 Key takeaways
- Not every debtor is a fraudster. A failure to pay rent due to sudden life issues (e.g., job loss) remains purely a civil law dispute.
- To hold a tenant criminally liable (Article 286 § 1 of the Criminal Code), it must be proven that they premeditated intentionHe must have made an agreement with a pre-arranged plan that he would not pay for it.
- In the matter discussed, the tenant, despite being in debt, boasted about their extravagant lifestyle on social media. This proved that they had the means and had deliberately misled the landlord regarding their intention to pay for the property.
- In criminal proceedings, the court may also order the offender to make amends for the damage (return of rent), provided that the victim, the landlord, submits such a request.
A ruling issued in Warsaw proves that pathological tenants, who live at the expense of landlords and treat it as a way of life, can face severe criminal liability. The perpetrator received a sentence of two years of community service.
Criminal sentence for rent arrears. Renting as fraud
The nature of a lease agreement (a reciprocal agreement)
A residential lease agreement is a mutual, bilateral contract. The tenant undertakes to pay, and the landlord undertakes to make the premises available. Both parties take a risk, relying on the other party to fulfil their obligation. If the tenant enters into an agreement, it is assumed that this will create the expectation in the landlord's mind that they will meet its financial aspects.
Civilian drone – what can a renter do?
Unfortunately, when rent stops being paid, a landlord's standard, civilian range of actions is severely limited. Taking legal action for payment is – in the optimistic scenario – a battle lasting several months, but realistically, legal proceedings take over a year. After obtaining a judgment, the bailiff comes into play, but if the tenant officially possesses no assets, enforcement is ineffective. What's worse, the tenant can continue to occupy the property throughout this entire period, as the eviction procedure in Poland is a separate, equally slow ordeal. Landlords therefore begin to seek assistance from law enforcement agencies.
Criminal liability for non-payment of rent (fraud)
The District Court for Warsaw-Śródmieście has confirmed that in specific circumstances, an impudent tenant can be convicted of fraud (Article 286 § 1 of the Penal Code). Let's look at the elements of the offence that the court had to identify:
1. Acting for financial gain
A financial benefit is not just about "earning" money. It's also about not incurring costs. If a tenant lives in a property for free and does not bear the expected expenses out of their own pocket, their financial situation undoubtedly improves.
2. Causing detrimental disposal of property
1. The term "disposal of property" in this case means the voluntary, but mistaken, decision of the lessor to hand over the keys to the premises. This disadvantageous disposal resulted in the loss of future, due benefits in the form of rent (so-called lucrum cessansThis position has already been consolidated by Polish appellate courts.
3. Misleading (key evidence)
This mark "sifts out" unfortunate people who have stumbled from calculating criminals. To convict a tenant of fraud, the landlord must prove to the prosecutor (which is usually very difficult) that the tenant had no intention of paying at the time of signing the contract.
In a Warsaw case, a tenant accrued a debt of PLN 14,000. Simultaneously, they actively boasted on social media platforms (including YouTube) about an extremely lavish lifestyle, designer clothes, and foreign trips. The prosecutor had no difficulty proving in court that the perpetrator deliberately placed their available funds everywhere except in the landlord's account, having planned the entire operation from the outset.
Criminal verdict only for actual fraudsters
The criminal case described is an important, but niche, precedent. We must remember that failing to pay a bill on time is not automatically fraud – it is still a classic civil dispute, where the principle of freedom of contract and business risk applies. However, deliberate exploitation of the owner, proven beyond all doubt, is met with a firm punishment. The Warsaw "hero" was sentenced to community service (40 hours per month for 2 years), fines to victim compensation funds, and court costs. Only the fact that he had recently become a father saved him from a prison sentence.