PRS, Private Rented Sector, or institutional rental is an activity run by professional entities based on renting apartments in buildings belonging to these entities. Every year it grows more and more popular, thus becoming an alternative for purchasing an apartment or choosing traditional rental options.
Rental market development segments
Stability
At present, apartments for rent in Poland are still treated as a temporary alternative to property ownership. Regulations concerning the protection of tenants evoke fear among apartment owners, which resulted in entering preferably into short-term rental agreements. This in turn causes insecurity among tenants. PRS seems to be the right alternative here, as it guarantees stability. One can enter into an agreement with professional company that has a wide range of apartments at its disposal, not only when it comes to their types, but also their locations.
Comfort
In Poland, tenants complain about the low comfort of renting. Some of the reasons behind it are the low quality of the apartments available for rent, restrictions concerning their arrangement, and unexpected visits of their owners. In this context, the professionalisation of renting services is a key challenge.
Quality
In order to create professional image of the leasing market, setting apartment standards by institutional investors is a must. So called “apartments after grandma” clearly do not meet basic criteria. Proper finishing, furnished interior, or a possibility of arranging the apartment in own manner should be considered a norm.
Professionalism
The greatest challenge that stands before institutional rental market is changing the image of the rental sector. The creation of professional tenant service and support, and building trust among tenants, is a key to setting new standards. The reason behind this is that the groundwork laid by the retail rental market is pretty rugged. The changes and technological solutions that have already been introduced show that PRS is setting standards and professionalizes the rental market.
PRS in Poland
Poland is one of the most attractive countries when it comes to investment in Central and Eastern Europe. Reports indicate that the PRS sector is rapidly growing, new investors are pouring in, and the number of contracted buildings under construction is rising. In 2018 a pioneer transaction of 193 apartments within PRS formula in Warsaw took place, in 2021 the number of such apartments amounted to 6,200, and it is estimated that in December 2023 there’s going to be 12,000 of them.
PRS has become an alternative for people who cannot afford to buy their own apartment. PRS is a top choice among students and young, working adults who value location, flexible rental period, as well as certainty and stability provided by professional entities.
What makes PRS different?
• great location,
• modernity,
• high standard,
• technological development,
• professional customer support.
Lifestyle, work, and expectations make renting a more and more popular choice. It is predicted that the number of people renting an apartment is going to rise every year. The PRS industry is continuing to grow, which confirms that investors clearly see the potential for PRS sector here on the Polish market.
