Saturday, 15 March 2025
The Association of Polish Employers of Trade and Services (ZPPHiU) has raised concerns about the lack of transparency in how shared costs are allocated in shopping centres across Poland. According to the organization, landlords are significantly increasing service charges—often beyond inflation rates—without clearly detailing the breakdown of costs or justifying the increases.
ZPPHiU argues that this issue is systemic, with shopping centre owners passing financial risks onto tenants instead of assuming responsibility for proper budgeting. This results in uncontrolled cost increases, forcing tenants to scrutinize expenses that should be transparently managed by landlords. Despite commitments to transparency outlined in the PRCH Code of Good Practice, many shopping centres allegedly prevent tenants from conducting independent audits of shared costs.
Disputes Over Audit Rights and Rising Fees
A case highlighted by ZPPHiU involved Galeria Sfera in Bielsko-Biała, where tenants were reportedly denied access to audit shared costs, despite the PRCH Code explicitly granting them this right. In response, ZPPHiU and the Union of Polish Building Entrepreneurs and Landlords formally appealed to the Polish Council of Shopping Centres (PRCH) on 19 November 2024, requesting adherence to established standards. However, no response was received.
“The Code of Good Practice explicitly states that tenants have the right to audit costs incurred by landlords for property maintenance. A refusal to grant this right not only breaches lease agreements but also contradicts the principles outlined by PRCH itself,” said Zofia Morbiato, CEO of ZPPHiU.
According to Morbiato, the issue extends beyond Galeria Sfera. Several other shopping centres have allegedly obstructed or outright denied audits, raising concerns about accounting accuracy and cost justification. The rising service charge advance payments have led to financial strain for tenants, who argue that cost increases should be clearly explained and justified.
Challenges with Green Lease Agreements and Modernization Costs
Another point of contention is the “green annexes” included in lease agreements, which allow landlords to impose additional environmental compliance costs on tenants. ZPPHiU claims that these clauses often lead to unnecessary expenses, such as the mandated replacement of flooring, storefronts, and installations—despite no tangible benefit to customers or sustainability goals.
Modernization of common areas is another area where tenants feel excluded. Landlords frequently make upgrades without consulting tenants and then incorporate the costs into service charges. Similarly, the management of parking fees has become an issue, with tenants expected to fund parking operations through service fees while shopping centres reduce free parking time and generate additional revenue that is not factored into shared costs.
Ongoing Tenant Concerns and Proposed Solutions
ZPPHiU maintains that landlords must take full responsibility for investments required by aging infrastructure and evolving EU regulations. Under the law, property owners are obligated to ensure compliance and safety standards, yet many are shifting these financial burdens onto tenants.
These concerns were a key focus of the 3rd Congress of ZPPHiU and PSNPH, where industry leaders discussed strategies to reduce tenant risks and promote fair cost-sharing in lease agreements. A particular emphasis was placed on green lease agreements, contract negotiations, and comprehensive cost control measures.
The Congress also presented new research on shopping centre customer expectations and introduced a tool designed to assess customer experience at both the shopping centre and individual store levels.
Despite repeated calls for change, tenants continue to push for greater transparency, fairer cost distribution, and adherence to industry best practices, urging PRCH and landlords to uphold their commitments to ethical business standards.
Source: ZPPHiU
