Commercial rental of residential premises (conditions, features, risks, etc.)


Commercial hiring: what is it?

Commercial rental of residential premises in residential complexes of the Russian Federation is considered one of the legal methods of providing housing for temporary residence in 2021. An indication of the commercial nature of this type of agreement does not imply the existence of an entrepreneurial relationship between persons, but indicates the possibility of offering a paid type of accommodation for temporary residents.

ATTENTION! The legislation does not reflect certain rules that establish the procedure for concluding a commercial lease agreement.

For this reason, people need to look at the requirements written down in Chapter 35 of the Civil Code of the Russian Federation, with the exception of the rules directly related to the rental of housing stock. Features of a commercial lease agreement:

  • the lessor may be the legal owner or a person appointed by him;
  • under agreements of this type, only an individual can be considered a tenant of housing;
  • The intended purpose of this type of legal relationship is to use the property only for human habitation; conducting any other activity in such premises is prohibited.

These are the main points to remember. There is the most common real estate that can be called commercial housing:

  1. Agricultural enterprises.
  2. Industrial type objects.
  3. Hotels, inns, motels.
  4. Warehouses, garages.
  5. Office.
  6. Various centers and shops.

Commercial real estate is also considered:

  • Land and other natural areas.
  • Certain areas are underground.
  • Demarcated water-type objects.
  • Plots in the forest.
  • Old plantings.
  • Other types of property attached to the land plot or firmly connected with it. Most often, these are houses or buildings.

It must be remembered that real estate also includes rights to it. It can also be used to refer to space-type objects, watercraft and aircraft that must be officially registered.

Ensuring property rights

The tenant does not have the right to prevent the owner-tenant from visiting and, within reasonable limits that do not violate the rights of the tenant, dispose of his property. You cannot replace entrance doors, install bars on windows, change locks and keys to entrance doors without the consent of the landlord.

Prevent scheduled or cosmetic repairs to be carried out on the premises. Elimination of accidents or liquidation of emergency incidents. As well as prohibiting access to the premises by employees of special operational services while performing their professional duties.

How the contract is concluded

To formalize an agreement, the parties must comply with the requirements established by law. Initially, it is necessary to determine which real estate objects can be given out for temporary use under the terms of such a lease.
According to the law, an object transferred on a rental basis must meet the following requirements:

  1. isolated condition - the living room must be fenced with special structures and have a special entrance (exit) to the main property of the building, or direct access to the street area;
  2. the room must be suitable for permanent residence , in other words, meet the requirements and standards established by the housing law;
  3. You can rent out not only a whole type of object, but also its isolated part (for example, an isolated room in a house).

To conclude an agreement, counterparties need to discuss the essential and auxiliary terms of the transaction. They should include:

  • the subject of the agreement is the temporary use of a specific living room;
  • period of time – the maximum term of the agreement cannot exceed 5 years, such a rule was established by law;
  • the amount of regular payments for housing is established by agreement of the parties (payment for utilities will be recorded separately, depending on the actual absorption of resources or the number of people living);
  • the composition of persons who will be able to obtain housing for the entire rental period;
  • the composition of the property that is in the apartment or house, and is transferred for a time;
  • other conditions that are discussed by the parties (including the procedure for carrying out repair work, etc.).

To draw up an agreement of this type in 2021, you must comply with the written form of documentation; you do not need to take a notary’s certificate. It is also necessary to take into account that as a result of the conclusion of the agreement, a restriction of property rights will appear, which is subject to urgent official registration in the Russian register.

ATTENTION! The registration law must be observed only when concluding a transaction for more than one year; this condition does not apply to short-term agreements.

To draw up an agreement, the parties will need the following documentation:

  1. identification documentation of all citizens (general type passport, child’s birth certificate, etc.);
  2. title documentation for housing (certificate of title, extract from the Unified State Register, etc.);
  3. Commercial lease agreement and transfer acceptance document.

When applying to register an encumbrance, you must have a payment certificate with you, which confirms payment of the state duty.

Can commercial property be residential? Despite the fact that everything was streamlined before, such a concept as “commercial housing” has appeared, and now it is increasingly gaining momentum. The concept of commercial housing means all residential real estate, the operation of which provides the opportunity to make a profit.

Housing use

In the process of living under rental conditions, tenants are obliged to comply not only with the terms of the contract, but also with the direct requirements of the law. If there is a significant violation of the procedure for using residential premises, early termination of the contract and forced eviction may follow.

We can formulate the main responsibilities of employers, which are fixed in the Civil Code of the Russian Federation:

  • use of the property only for its intended purpose, i.e. for residence of citizens;
  • ensure the proper condition of the leased premises;
  • timely fulfillment of the obligation to pay fees for the use of residential premises.

In addition, there is a direct ban on carrying out construction work on the redevelopment and reconstruction of housing; this can only be done with the consent of the landlord.

Since the content of the lease agreement necessarily indicates a list of entities acquiring the opportunity to use residential real estate, they have the legal opportunity to move in and register with the local department of the Federal Migration Service. Registration is a mandatory requirement of migration legislation; lack of registration will entail administrative liability. To register, you must present the original rental agreement; registration will be issued for the entire duration of the agreement.

If both parties properly fulfill their obligations, the contract will be terminated only upon completion of its term. At the same time, the legislation provides for the tenant a preferential opportunity to extend the rental agreement for a new term on the same terms, if the landlord does not have a more advantageous offer from third parties.

In addition to the standard situation with the expiration of the contract, it can be terminated early by the parties on the grounds specified in the Civil Code of the Russian Federation.

Example of an apartment

The simplest example of such housing is a standard multi-storey apartment building. But each room in it is considered a private living space.

In general terms, the creation of multi-apartment buildings appears to be a profitable project in the field of commercial real estate.

After all, the design, architectural planning and further construction of a house is an investment of money, the purpose of which is absolutely clear - to make a profit.

But at the same time, every apartment in such a building is residential real estate. After all the apartments are sold, the house ceases to be a commercial type project. From now on it will be classified as residential private property.

Additional features and nuances

When concluding an agreement, a transfer deed is often drawn up and attached to the main agreement. The act contains a description of all property items (furniture, household appliances) that the owner leaves in the apartment. This prevents the emergence of controversial situations due to damage or loss of property.

Sometimes the lease is provided with the right to buy. After the tenant has purchased the apartment, he needs to contact Rosreestr or the MFC to register ownership of the property. You must have a passport, a rental agreement, an application for registration of rights and documents confirming full payment for the property.

Renting with the right to buy carries certain risks - for example, the owner may refuse to sell the apartment, and then the tenant will have to demand a refund through the court. If the owner or tenant dies before the redemption, the remaining participant will have to independently resolve all issues with the heirs.

Subtleties of taxation

Tax payments for commercial real estate can also pose problems. Since such housing is not actually included in the housing stock, it is impossible to receive a 13% tax deduction.

But at the same time, taxes on apartments themselves are written off at high rates, because according to the law, this housing is considered commercial. Therefore, the owner of an apartment, compared to the owner of a simple home, overpays in terms of taxes.

When determining the tax base, the minimum rate for commercial housing is 0.5%, the maximum is 2%. As for simple housing, a rate of 0.1% applies.

The most unprofitable in terms of taxes are apartments that are located in an office, shopping complex, or in a building created for catering establishments. The most affordable accommodations are in hotels.

Is it possible to privatize such housing? There are problems here too. Sometimes people are offered contracts where they are considered the owners not of housing, but of some share in the common property.

Pay

The procedure for paying for housing is determined by the terms of the contract. Its size can only be changed by mutual agreement of the parties. Payment is made by crediting funds to the owner's bank account. Bank receipts serve as confirmation.

The law allows cash payments. In this case, it is necessary to issue receipts for the transfer of money. The latter option is suitable for the case when the premises are rented for a short period, for example, one month.

Prevalence

As practice shows, half of the real estate on the primary housing market in Russia is apartments. Why is this so common? It's all about affordable price, and this is a big plus for selling housing in Moscow.

IMPORTANT! But buyers forget about a serious drawback - the legal status of such objects is not clearly stated. Formally, these premises are non-residential real estate.

Despite the fact that they are completely suitable for life, they are actively included in the plans and projects of administrative centers and various complexes.

How much does housing like this cost? If we compare apartments with new buildings in simple residential multi-storey buildings, they will be 20-30% lower in terms of price. Moreover, the characteristics of the housing will be identical.

Commercial housing used to attract only entrepreneurs and investors. Now, such housing attracts ordinary citizens interested in great deals. But in fact, the lower price of apartments results in a whole list of disadvantages that will outweigh any advantages.

Participants in contractual relations

This agreement differs from social rent in that the landlord of real estate can be either an individual or a legal entity, including government agencies other than the municipality. Let's consider the features of the parties to legal relations.

Landlord

A mandatory condition for the landlord when renting out residential premises is the availability of rights to own, use and dispose of the property. Sometimes the owners of commercially rented housing are members of housing funds; based on the general rule, such housing is also included in this private fund.

Based on this, it follows that persons who do not cover the share contribution are forced to pay it by renting out an apartment.

The role of the party concluding the contract will not be the owner himself, but the person managing this fund (representative, manager), who will act as one of the parties to the legal relationship.

Tenant in commercial rental

Usually one individual participates in this role, but the Civil Code of the Russian Federation also allows for the condition of multiple persons participating in the transaction on the part of the lessor, not only the tenant.

For example, persons who ran a joint household (cohabited) with a tenant have legal validity to enter into such a transaction with the condition of joint liability of the tenant and the persons cohabiting with him to the landlord.

In this case, the people included in the agreement acquire the status of co-tenant and similar rights and obligations as the tenant.

When concluding a commercial contractual relationship, the tenant independently decides and indicates the list of citizens with whom he will live in the rented apartment, therefore it is not necessary to include even children or spouses in the number of co-tenants.

The law does not define or mention any family relationships; it indicates the presence of persons who cohabitate.

The legislation determines the existence of a documented list of citizens cohabiting with the tenant, since an excessive number of residents in a rented apartment would quickly worsen its condition.

However, when a person who is not listed in the list lives in housing, he is subject to eviction or inclusion in the list with the consent of the landlord in accordance with Art. 679 Civil Code of the Russian Federation.

The exception is minor children of both the tenant himself and his neighbors; they can be included in the list of co-tenants without the permission of the landlord in accordance with Part 2 of Art. 679 Civil Code of the Russian Federation.

Is registration required?

Federal Law No. 122 “On state registration of rights to real estate and transactions with it” dated July 21, 1997 and other regulations do not contain data on the mandatory registration of transactions relating to commercial hiring.

Agreements on the commercial lease of residential premises are a separate category of legal documents, therefore the rules applicable to lease agreements are not relevant to rental agreements.

The agreement is not subject to registration, regardless of the period for which it was concluded.

Responsibilities

Landlord

  • Provide the tenant with housing that is suitable for living;
  • Carefully operate the building in which the rented apartment is located;
  • Provide the tenant with housing and communal services in full and ensure repairs of common property.

Employer

  • Not to use the housing provided to him for any purpose other than residence;
  • Ensure the safety of the property transferred to him, including carrying out routine repairs of real estate;
  • Pay fees for the use of housing and housing and communal services on time and in full.

The tenant cannot carry out refurbishment or reconstruction of the premises without the prior approval of the property owner.

Termination of the agreement

Cases when a contract can be terminated are recorded in Art. 687 Civil Code of the Russian Federation . If the tenant wishes to terminate the contract, he must notify the owner 3 months before termination of the transaction. The owner of the property has the right to demand termination under the following circumstances:

  • the second party caused property damage to the owner’s property,
  • The mandatory payment was not transferred for more than six months. For a short-term agreement, this period is reduced to 2 months.

Under such circumstances, the owner has the right to evict the tenants. He must give notice of his decision 3 months in advance. If they do not want to leave the apartment voluntarily, then the issue will have to be resolved in court. Judicial practice shows that the following solutions to the problem are possible:

  • the court may set a period for the defendant, which should not be more than 1 year, to eliminate the violations that became the basis for early eviction - repair of living space, repayment of payment debts,
  • if after the expiration of the specified period the situation does not change, then the owner’s repeated application will entail forced eviction,
  • The tenant may apply to defer the eviction in order to find new housing.

The absence of mandatory payments or damage to property will need to be proven by attaching the appropriate papers. The contract can be terminated early if the premises are recognized as unsafe for reasons beyond the control of the tenant. Upon termination of the agreement, residents must return to the owner his property listed in the transfer and acceptance certificate. The following sequence of actions should be followed:

  • the tenant and other persons with whom he lives are obliged to vacate the living space within the period specified in the court order,
  • upon application by the owner, the FMS terminates the registration of residents at the address of the premises,
  • The tenant is obligated to repay all outstanding debts to the owner.

If the eviction occurs under a court order, the tenant must pay all repair costs associated with property damage that he caused to the owner.

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