Institutional Lease and STR in One Flat: Can You Combine in 2026?

Institutional Lease and STR in One Apartment: Can You Combine Them in 2026

Institutional lease for 6 months plus short-term rental in summer, a hybrid model that delivers stability and higher ROI. See if it is legal in 2026, how to organise the contracts, what the housing community requires, and what about CWTON for an apartment with two uses.

The hybrid long-term plus short-term model (LTR + STR) became popular in 2025 and 2026 among investors looking for a middle ground between the stability of an institutional lease and the rate levels of Airbnb. An apartment leased institutionally to an IT employee for 6 winter months (November to April) and simultaneously listed on Airbnb for July and August usually generates 25 to 40% higher profit than full LTR, with less operational effort than full STR.

Institutional Lease: Legal Definition

The institutional lease was introduced into Polish law by the Act of 20 July 2017 on the National Real Estate Stock. It is governed by the Act of 21 June 2001 on the Protection of Tenants' Rights (Article 19f and following).

The institutional lease:

• Is concluded for a fixed term (the act sets no rigid length limits)
• In written form under pain of nullity
• With the tenant's attached declaration of voluntary submission to enforcement in the event of eviction (this declaration is made in the form of a notarial deed)
• Concluded exclusively by an owner who is an entrepreneur conducting business in the field of renting out premises (Article 19f of the Tenants' Rights Protection Act)
• Without the need to designate alternative replacement housing for the tenant

The main advantage for the owner: easy and fast recovery of the apartment after the contract ends (eviction in 2 to 4 weeks instead of the standard 6 to 12 months).

Can You Combine LTR and STR in One Apartment?

Yes, but with requirements:

• The institutional lease contract must be for a fixed term and must end before the start of STR
• The apartment must be entered in CWTON (Central Register of Tourist Accommodation Facilities) regardless of the LTR period
• The housing community cannot ban STR (a resolution is possible, but limited)
• The local tourist fee (about PLN 3.3-3.5 per person per night) is collected from guests only in designated localities under a municipal resolution, and only for STR days
• Tax settlement: two income sources in PIT (Polish personal income tax), but one apartment

Benefits of the Hybrid Model

Financial stability

6 months of guaranteed income (LTR rent) covers the mortgage, fixed costs and gives financial certainty. No vacancy risk in winter, when STR demand is low.

Higher combined profit

July and August on Airbnb deliver on average 250 to 400% of monthly LTR rent. 2 months of STR often generate profit similar to a full half-year of LTR rent.

Lower regulatory risk

If restrictions on short-term rental were introduced in the future (as of today municipalities have no legal basis to adopt ban zones or night limits), the hybrid model lets you concentrate STR in the best, shortest window of the season and limit your exposure to any future regulation.

Less wear on the apartment

1 long-term tenant over 6 months wears the apartment less than 50 short STR guests. Fewer renovations, fewer equipment replacements.

Comparison Table: Full STR vs Hybrid vs Full LTR

Parameter	Full STR (12 m)	Hybrid (6+6)	Full LTR (12 m)
Gross income annually	PLN 113,760	PLN 87,200	PLN 42,000
Operating costs	PLN 32,000	PLN 18,500	PLN 4,800
Tax (ryczalt)	PLN 10,220	PLN 7,412	PLN 3,570
Net profit	PLN 71,540	PLN 61,288	PLN 33,630
Operational days	237 nights	62 STR nights + 1 LTR	1 lease
Vacancy risk	High	Low	Very low
Cash flow stability	Low	Medium	High

The hybrid delivers 86% of full STR profit with 25% of the operational work. The best ROI/effort ratio for most hosts.

Procedure for Concluding an Institutional Lease

1. Find a tenant (listing on portals such as OLX, Otodom, Gumtree)
2. Negotiate rent and terms (fixed term)
3. Conclude the contract in written form under pain of nullity
4. The tenant submits the declaration of submission to enforcement in the form of a notarial deed (at the notary)
5. Notary cost for the declaration: about PLN 600 to 1,200 (in line with the notary fee schedule)
6. Collect deposit (usually 1-3 months of rent)

Synchronising LTR and STR: Calendar

Example of an annual schedule:

• 1 September 2026 to 30 April 2027: LTR (8 months, rent PLN 3,500/month, total PLN 28,000)
• 1 May 2027: end of LTR contract, cleaning and renovation (1 week)
• 8 May to 30 September 2027: STR (146 nights x average PLN 320 = PLN 46,720 gross)
• 1 October: new LTR contract for the next year

The key: you start LTR in the off-tourist season (September, October), you end before the season starts (April, May). LTR tenants (e.g. students, IT employees) are open to such terms.

Housing Community: Can It Ban the Hybrid Model

Under settled case law, a housing community cannot completely ban short-term rental in someone else's premises. It may, however:

• Introduce higher management fees (e.g. x2 for STR apartments)
• Require notification of a change in the way the property is used
• Require additional civil liability insurance related to STR

The LTR + STR hybrid works in the owner's favour: 50% of the year is "classic" long-term rental, which the community accepts without objection. Conflict arises only during the STR period and with good planning (summer vacation, when most neighbours are also away) it is minimised.

CWTON for an Apartment With Two Uses

An apartment rented out in a hybrid model must be entered in CWTON. Regardless of whether for 6 months it is not on STR. CWTON is the assumption that the property is offered as STR. No registration means no possibility of listing on Airbnb in the summer season.

It is worth planning in advance in which months the property will actually be offered as STR. A clear split of the year into an LTR period and an STR period helps with correct tax settlement, avoiding misunderstandings with officials, and with any local tourist fee collected from guests.

Tax Settlement of the Hybrid Model

Institutional lease and STR can be settled:

• Together on ryczalt 8.5%/12.5% as private rental income (PIT-28)
• Separately: LTR as private rental on ryczalt, STR as JDG (complicated, rare)
• Everything as a sp. z o.o. (CIT 9% or estoński CIT (Estonian CIT model))

The most common choice: everything on ryczalt as a private individual. The PLN 100,000 limit for the first rate (8.5%) is exceeded only at large scale.

Questions and Answers

Can the LTR tenant sublet on Airbnb during the contract?

Without your written consent NO. An institutional lease contract typically contains a clause prohibiting subletting. Breach equals immediate termination of the contract and eviction under the notarial deed regime.

Can you have both an institutional lease and a regular one in one year?

Yes. The institutional lease is one of the lease forms and can be combined with regular lease, occasional lease or STR. Each form has its own formal requirements.

What about the LTR tenant deposit in the hybrid model?

The deposit is returned after the LTR contract ends (April-May), reduced by any damages. A new STR deposit is collected from the guest (usually via Airbnb, PLN 200 to 500) and returned after check-out.

Does an institutional lease have to be at the notary?

The institutional lease contract itself requires written form under pain of nullity - it is not a notarial deed. What is drawn up at the notary is the tenant's attached declaration of voluntary submission to enforcement (that is what enables the simplified eviction). Without meeting these requirements, the contract is not an institutional lease but a regular lease (with more difficult eviction).

Can I terminate the LTR contract early if I want to start STR sooner?

Yes, but only with the tenant's consent (termination by mutual agreement) or in cases specified by the act (e.g. failure to pay rent for 3 months). Unilateral termination of an institutional lease by the owner is possible only in cases provided for by law.

What about depreciation of the apartment in the hybrid model?

Since 1 January 2023, depreciation of residential premises is prohibited - both in PIT and in CIT (this applies to private rental as well as to companies). Furnishings and furniture can, however, be a tax cost. The inability to depreciate the premises themselves now applies to every form of running a rental.

To launch the LTR plus STR hybrid model with proper contracts and CWTON registration, use the Standard Package HostReady, where you will receive an institutional lease contract template, an STR house rules template, instructions for synchronising both forms, and a hybrid calculator.

Don't want to search for templates and regulations on your own? The HostReady Package includes complete documentation, ready-to-use templates, and checklists - everything you need for CWTON registration and legal short-term rental, ready to use right after purchase.