Before she could arrange a viewing of the flat, she had to pay a "signing on" fee of 500pln, if she did not want to take the flat, and the agent couldnt find her a suitable one, she would have to pay a 1000pln cancellation fee.
I believe that is highly unethical. Is it even legal under Polish law?
I just read an article about such practices becoming more commonplace in Australia, where there is a severe rental shortage in the big cities. Agents have apparently starting charging "application fees" if someone wants to just look at an apartment, which apparently is illegal in Australia. Also there are bidding wars taking place, with agents driving the rental prices higher.
Article is here if anyone is interested: news.com.au/business/money/story/0,25479,24248897-5013951,0 0.html
Thankfully the situation isn't so bad in Krakow. Sure, I believe there is a shortage in some rental segments (mainly the cheap end) at present, but that doesn't mean it gives agents free licence to start using such underhand tactics.
My colleague told me that gumtree has recently banned any advertising of rental apartments in which interested tenants are asked to pay money upfront just to find out more information about the apartment, or arrange a viewing. This did happen.
This section has been added to their regulations for advertisers:
"Nie akceptujemy ogłoszeń agencji/ biur itp. pobierających opłaty przed pokazaniem nieruchomości. " / We don't accept advertisements from real estate agencies who ask for (take) payment before conducting viewings of apartments (something to that effect)
Basically, this is how it should work. You see a property advertised which you like and contact the agency. Before showing you the property, the agent will want to sign a representation agreement stating how much the tenant will pay should they decide to go ahead and rent it. This is normally between half and one month's rent, depending on the term of the lease agreed. If you don't want to take the property, you shouldn't have to pay anything to the agent.
This is how we do it anyway.
Another thing which is starting to be all more common recently, is this deposit equivalent to 2 months deposit. Whether this is desperate landlords noticing that the market is turning, and trying to grab as much as possible now, or that its a normal thing.
Mostly we still only take 1 month's rental amount as a security deposit, though I have noticed more owners recently asking for a larger deposit, particularly if there is any doubt about the tenants, i.e. they are students, for example, or a risk in some way.