Renting out an apartment: points that are definitely worth considering when starting a business
First, of course, it is worth noting that
And secondly, such a business is quite complex and has many nuances not only from the legislative base, but also from the point of view of everyday and organizational issues. And here are some general but key points you should know if you are planning to rent out your apartment:
- To officially rent an apartment, you must enter into a written lease agreement. This agreement must specify the terms of the lease, such as the lease term, the amount of rent, the procedure for paying it, the rights and obligations of the lessor and the lessee, and other important terms.
- Typically, when renting an apartment, the landlord may ask the tenant to pay a security deposit, which is usually one or more months’ rent. The security deposit is returned to the tenant at the end of the rental period, unless there are problems.
- The lease agreement must specify the amount of rent and the timing of its payment. According to the law, rent can be adjusted and revised during the lease term, but only with the consent of both parties.
- the tenant is obliged to register at the place of residence in the rented apartment within the established time limits, and therefore the landlord in most cases cannot prevent this.
- The landlord and tenant may be required to pay taxes on rent in accordance with Russian law. It is important to clarify this issue with the tax authorities.
We emphasize that these are general guidelines only, and specific requirements may vary depending on the region and municipal regulations.
Requirements that a landlord may impose on a tenant
What points should be emphasized here so that there are no further misunderstandings and the risk of conflicts is minimized? Let us note the following nuances:
- apartment condition: this moment is extremely important! Literally make an inventory of the property (inventory sheet), record the condition of the premises, furniture and equipment with photographs, and possibly video footage. This is not pettiness! This is a safety net that will help dot the I’s when controversial issues arise.
- repair and service: It is worth determining who is responsible for minor repairs and maintenance during the rental. It is also necessary to indicate which types of repairs and maintenance require the prior consent of the landlord.
- rules of residence: their installation is also the key to adequate interaction in case of problems. A ban on smoking, a ban or permission to keep pets, a ban on organizing noisy events, etc. — such “restrictions” often save the situation. And these rules must be reflected in the contract!
- payments and utilities: indicate which utilities are included in the rent and which payments the tenant must pay separately.
- The lease term and termination should also be determined at the beginning. It is also necessary to indicate the notice period for the end of the lease and the conditions for returning the apartment.
- registration: clarify who and how will register at the place of residence in the rented apartment, as this is a mandatory legal requirement.
- Contact Information: include in the contract contact information of the tenant and the landlord for prompt communication.
- establish liability for damage or loss in the apartment and define a dispute resolution procedure.
IMPORTANT: compliance with the law and clear execution of the lease agreement will help to avoid misunderstandings and conflicts between the parties. It is also recommended that you discuss all the terms of the lease with the tenant and ensure that both parties fully understand and agree to them before signing the contract.
And finally, a question that often baffles those who are just starting to rent out an apartment:
What is the rent amount determined from?
The answer here is this: the amount of payment when renting out an apartment is formed on the basis of several factors and may vary depending on different conditions. Here are the main parameters that influence the determination of rent:
- The location of the apartment is one of the most important factors determining the rental price. Apartments in the center of large cities or close to business and shopping areas are often more expensive compared to apartments on the outskirts.
- Usually the rent depends on the area of the rented apartment. The larger the area, the higher the rent.
- the quality of repairs and equipment in the apartment can affect the rental price. New or completely renovated apartments are often more expensive.
- If the apartment is fully furnished and equipped with appliances, this may increase the cost of rent.
- The proximity of the apartment to educational institutions, medical centers, transport hubs, shops and entertainment venues may affect the rental price.
- The level of supply and demand in the real estate market in your area can greatly influence rental prices. During periods of high demand, rents may increase, and during periods of low demand, rents may decrease.
- The length of the lease term can also affect the cost. Long-term rentals are often cheaper than short-term rentals.
- Depending on the lease agreement, the tenant may be responsible for paying utilities (electricity, water, gas, heating, etc.) separately from the rent.
- In some cases, for example, if the tenant and landlord live in different countries, the rent may be denominated in a foreign currency. And, accordingly, depend or not depend on the exchange rate. This point is worth discussing to avoid misunderstandings in the future.
IMPORTANT: These factors may vary depending on the region and the specifics of the real estate market. Additionally, when setting your rent, it is important to consider current market conditions and compare similar listings on the market to determine a fair price for your apartment.