In Russia, too, there are laws regulating the procedure for renting out apartments, but not all the subtleties that you may encounter when renting (or renting) housing are spelled out there. In addition, apartment owners in Russia often prefer to limit transactions to verbal agreements. So, of course, you sleep less peacefully, but you don’t pay taxes either. Employers are also often hunting for “without intermediaries” options.
Experts from real estate firms in the capital spoke to the Interfax-Real Estate agency about the laws that work and do not work when renting housing, about the rights and obligations of participants in transactions, about the troubles that await inexperienced owners and tenants, as well as about the trends in the modern housing rental market.
Rent and hire
Experts explained how the current law regulates the relationship between the employer and the landlord.
“First you need to decide on the legal terminology,” says Khaya Pleschitskaya, head of the legal department at MIAN Real Estate Agency. “Under a lease agreement, residential premises can be provided for possession and (or) use only to legal entities and only for the residence of citizens. Housing for individuals provided under a lease agreement. In accordance with Article 30 of the Housing Code of the Russian Federation, the owner has the right to provide possession and (or) use of residential premises belonging to him by right of ownership to a citizen (based on a lease agreement, a contract of gratuitous use), as well as to a legal entity ( on the basis of a lease agreement, taking into account the requirements established by civil legislation and the Housing Code).
The rental agreement for residential premises is regulated by Chapter 35 of the Civil Code of the Russian Federation, where one party - the owner of the residential premises or a person authorized by him (landlord) - undertakes to provide the other party (tenant) with residential premises for a fee for possession and use for living in it (Article 671 of the Civil Code of the Russian Federation ).
Such an agreement is concluded in writing for a period of no more than 5 years. The object of the agreement may be an isolated residential premises suitable for permanent residence (apartment, residential building, part of an apartment or residential building). If during the term of the contract the owner suddenly changes, this does not entail the termination or modification of the residential lease agreement. In this case, the new owner becomes a lessor under the terms of the previously concluded lease agreement.”
"In accordance with Article 607 of the Civil Code of the Russian Federation, objects of lease may be land plots and other isolated natural objects, enterprises and other property complexes, buildings, structures, equipment, vehicles and other things that do not lose their natural properties during their use ( non-consumable items), - explains Olga Zapevalina, legal consultant of the BEST-Real Estate Corporation. - In current legislation, there is the concept of renting apartments only if one of the parties to the lease agreement is a legal entity. Individuals (citizens) enter into a lease agreement when renting out an apartment .
Protection of the rights of the tenant and landlord is carried out in accordance with current legislation and, first of all, in accordance with the Civil Code of the Russian Federation. To protect their rights, the landlord and the tenant can go to court, but only if a rental agreement is concluded between them, which stipulates all the necessary conditions of rental."
“Currently, the rental agreement is drawn up in simple written form and is not subject to mandatory notarization and state registration,” adds Deputy Director of the MIEL-Arenda company Maria Zhukova. “It is enough for both parties to sign this document, after which all relations between the employer and the lessor is governed by the terms of the contract."
Rights and obligations
Khaya Pleschitskaya drew attention to some specific points of the law (Civil Code of the Russian Federation) that relate to the rights and obligations of both parties to the transaction:
The landlord is obliged to: hand over to the tenant vacant residential premises in a condition suitable for habitation; carry out proper operation of the residential building in which the rented residential premises are located; provide or ensure the provision of necessary utilities to the tenant for a fee; ensure the repair of the common property of an apartment building and devices for the provision of public services located in the residential premises (major repairs).
The tenant is obliged to: use the residential premises only for living; ensure the safety of the living space and maintain it in proper condition; carry out routine repairs (unless otherwise specified in the contract); pay rent for living quarters and, usually, utility bills on time; indicate the citizens permanently residing in the residential premises with him, while such citizens have equal rights with him to use the residential premises, and the tenant, as a general rule, (unless otherwise established by the agreement), is responsible to the landlord for the actions of these citizens who violate the terms of the rental agreement.
The tenant has the right: with the consent of the landlord and citizens permanently residing with him and subject to compliance with the requirements of the law on the norm of the total area of residential premises per person, move other citizens into the residential premises as permanent residents of the tenant; when moving in minor children, such consent is not required and the norm is not taken into account; after the expiration of the residential lease agreement, the tenant has the pre-emptive right to conclude a residential lease agreement for a new term, to sublease all or most of the occupied residential premises, with the consent of the landlord.
The tenant has no right to: carry out refurbishment and reconstruction of residential premises without the consent of the landlord.
Hiring Troubles
In Western countries, rental housing is regulated in detail, and, in addition, this market segment has a longer history and established practice, says Maria Zhukova.
We asked experts to note the peculiarities of Russian experience and legislation in this area, and to talk about possible unpleasant surprises that you may encounter during a transaction if it is not carried out by professionals.
“The legislative framework regulating the relationship between the tenant and the landlord of apartments is small,” says Olga Zapevalina. “The main legislative act that regulates these relations is the Civil Code of the Russian Federation. It provides general provisions on rental. If you enter into a rental agreement, then it must all essential conditions must be spelled out. Due to the legal illiteracy of the parties to the contract, they may not provide in its text all the necessary essential conditions, as a result, in the event of a conflict situation, they will not be able to properly protect their rights. Currently, as a rule, rental agreements are oral, which contradicts Article 674 of the Civil Code of the Russian Federation, or, if the rental agreement is concluded in writing, it often does not describe all the terms of employment.”
O. Zapevalina noted that when transferring an apartment for rent, the legislation does not provide for an act of acceptance of the transfer of residential premises. “Practice has shown that signing such an act is necessary, and without signing this act, in the event of a conflict situation, the parties will not be able to confirm in any way the condition in which the apartment was before renting it out, the presence and condition of furniture and equipment and other conditions important to the parties ", said O. Zapevalina.
“Life circumstances always offer certain adjustments even for the most perfect laws,” says Khaya Pleschitskaya. “This must be taken into account in the modern situation, both the owner and the employer.
For example, it is better for the owner of an apartment who is renting it out to take part of the amount of money contributed by the tenant (usually 50-100%) to the deposit - in order to account for possible damage to the property by the tenant, receipt of cosmic intercity bills in the future and other problems.
If apartment owners fail to pay income tax for rental housing, and problems arise with tenants vacating the apartment, the owner, by going to court to protect his rights, risks being fined for non-payment of taxes. This fact may turn out to be an unpleasant surprise for owners, but it cannot be called a drawback of the legislation.
Another unpleasant surprise for the owner may be the very fact of the need and the only legal possibility of protecting their rights only in court if the tenants refuse to vacate the apartment. Even owners who pay taxes cannot find protection from the local police officer. This circumstance is dictated by the position of the state and the legislatively enshrined principle of protecting the housing rights of citizens, when any issue related to eviction is resolved only in court. Changing the locks in an apartment and then “carrying” the tenant’s belongings out to the stairwell is also not a legal decision. In this situation, the owner who did this may be to blame."
“In order not to encounter unpleasant surprises, it is necessary to work out the rental agreement in detail and record all agreements between the parties in writing,” advises M. Zhukova. “In this case, the risk of troubles associated with renting housing can be significantly reduced.”
Those interviewed by the Interfax-Real Estate agency agreed that the security of the transaction largely depends on the competent choice of an intermediary - an experienced realtor or lawyer who will help minimize risks when concluding a rental agreement.
Remnants of former attractiveness
Director of the real estate agency "Open Company" Maxim Katalov, at our request, spoke about current trends in the housing rental market in Moscow. In his opinion, the situation is changing rapidly and the former attractiveness of transactions is falling.
“For the last ten years, apartments for rent have become a stable, and often the only source of income for many residents of large cities,” said M. Katalov. “In addition, the attractive image of a rentier, as a way of life in old age, is the dream of many today office clerks.
The situation, unfortunately, is changing rapidly, and not for the better. From all sides, the attractiveness of such investments is falling. The offensive is on all fronts. Utilities are growing, the need to pay taxes is becoming more tangible, demand is falling - more and more tenants, with the help of mortgages, are becoming owners of their own apartments. In addition, a person with money, in addition to undeposited bank deposits, has much more effective means of preserving and increasing capital than investing in real estate - mutual funds, trading on the stock exchange.
Thus, the increase in apartments offered for sale, which were previously rented out, becomes understandable.
However, someday the scales may swing in the other direction again."
Last updated March 2019
The real estate market is currently experiencing a downturn. Despite this, many owners continue to rent out their own apartments, wanting to generate additional income.
What documents need to be drawn up when renting out housing, what taxes to pay, what liability is provided for violators - you will find answers to these and other questions in our article.
How to register a property for rent
If you own an apartment (or other residential premises) that you plan to rent out, then you need to know what documents are drawn up, as well as what the tax is when renting out an apartment.
Conclusion of an agreement
The relationship of renting out housing is called either hiring or renting.
The agreement between you (the landlord) and the tenant must be recorded in writing in the form of an agreement. There is no strict standard form for the contract, but the text must indicate:
- the subject of the contract, that is, the home itself. The contract indicates the full address of the property, characteristics (area, floor, number of rooms, etc.), cadastral number;
- rental amount and payment procedure. Describe the amount of payment and the frequency of its payment. As a rule, the employer makes payments every month in a certain fixed amount. It is also possible that the rent is determined monthly by calculations (for example, taking into account the inflation index, dollar exchange rate, cost of utilities, etc.). When concluding an agreement, the owner has the right to fix the possibility of increasing the rental price, but subject to certain restrictions (for example, no more than once a year, and no more than 10%).
- details of the parties (passport details, registration addresses, TIN).
- date and place of conclusion of the contract.
You can supplement the contract with other information that, in your opinion, is essential.
Payment guarantees
It is a good idea to specify the conditions for receiving and returning the deposit and its amount. When renting out housing to tenants, you can request a so-called guarantee payment - payment for the last month of residence (in advance). This money will be a kind of safety net for you in case the employer decides to move out ahead of time and refuses to pay. The guarantee payment is also used as compensation for damaged furniture, plumbing fixtures and other property. All these details must be taken into account in the contract.
Contract time
It is important to indicate in the agreement the duration of its validity. Such contracts are concluded for a period from 1 month to 5 years, and unless you indicate otherwise, it is considered valid for a maximum period (5 years). It is advisable to highlight a separate point - how long you are renting the apartment and how you can terminate the agreement.
This usually indicates the time in which each party is obliged to notify the other of the planned termination of the agreement. You can also indicate the conditions when you have the right to terminate the contractual relationship yourself (systematic violation of payment terms, deterioration of the condition of the housing, residence of strangers who are not tenants, etc.).
After drawing up an agreement with all the conditions, the agreement is sealed with the personal signatures of the parties. Registration of the agreement with a notary is not required.
When concluding an agreement for a period of 12 months or more, it must be registered with Rosreestr. But many owners do not apply to the Unified State Register authorities for registration. then there is a risk of claims from regulatory authorities. In order to reduce risk, you can enter into an agreement for a period of 11 months. Or for an indefinite period (but then such an agreement can in any case be valid for no more than 5 years).
Transfer and Acceptance Certificate
The transfer of housing for use to the tenant is formalized by a transfer and acceptance certificate. It dates from the day the tenant moved in. Scrupulous owners usually indicate in the deed the condition of the housing, as well as all valuable property that is located in the apartment and is transferred to the tenant for use. If you come across an unscrupulous tenant, then if you have an act with a detailed list, it will be easier for you to prove the fact of loss of property. This means it is easier to return it or compensate for its cost.
Proof of payment
Having signed the agreement and transferred the housing for use to the tenant, you have the right to demand payment from him according to the agreed conditions. It is important to record in writing all the facts of the transfer of money - this will help to avoid possible disagreements. Payment under the agreement can be made in two ways:
- The employer gives you the money in cash. Each transfer must be formalized with a receipt indicating the amount, date and purpose (for rent). Then seal the document with the signatures of the parties. This confirms payment (for the tenant) and receipt of money (for you);
- Funds are transferred to your current account in non-cash form. This method has a number of advantages: firstly, it is convenient, since there is no need to waste time on a personal meeting, and secondly, payment documents (receipt, payment order, bank statement) are certified by the bank, therefore, they are a much more reliable confirmation of payment.
Despite the undoubted advantage of non-cash payments, tenants prefer to meet with tenants in person and, as a rule, in a rented apartment. Under the pretext of receiving money, the owner evaluates the condition of the property and the reliability of the tenants.
If, in addition to rental payments, you charge the cost of utilities from tenants, then their amount should be indicated separately in the receipt (for bank payments, require payment with a separate receipt). This will help you avoid possible inaccuracies and confusion.
Taxes when renting out an apartment: documents, calculations, payment terms
When you rent out your own apartment, such activity is subject to taxation. There are several ways to pay tax on apartment rentals. Let's look at each of them and use examples to determine how to make the payment minimal.
Personal income tax payment
This method of fulfilling obligations is the simplest, as it does not require registration or additional documents from the lessor. All you need to do is draw up a declaration in form 3-NDFL and submit it to the fiscal authority. You can receive the declaration form in one of the ways convenient for you:
- personally apply for the document to the Federal Tax Service at your place of residence and fill it out on the spot according to the sample;
- download the form on the official tax website and fill it out at home yourself (3NDFL Declaration for 2018), indicate the income code 1400 ;
- register on the Federal Tax Service website using the “Personal Account”, fill out the form in the program and send it by email.
Drawing up a declaration is not a complicated procedure. In the form you need to fill in your personal data (full name, tax identification number, registration address, etc.), indicate the income received from renting out housing at the end of the year, as well as the amount of the fee, which is 13% of income.
News: apartments will be offered to renters! This is the so-called self-employed tax. The law is being tested in Moscow, the Moscow region, the Republic of Tatarstan, and the Kaluga region. If the experiment succeeds, the tax rate will be 4%!
When renting out an apartment, it is important not to delay filing a declaration and paying taxes.
- The completed declaration in form 3-NDFL for 2018 must be submitted to the Federal Tax Service by April 30, 2019 (for 2019 – by 04/30/2020),
- And transfer the tax to the budget before July 15, 2019 (for 2019 – until July 15, 2020).
Example 1
Resident of Tula Sergeev S.L. rents out his own room. According to the agreement, employers pay Sergeev 7,320 rubles. per month. For 2018, Sergeev received an income of 87,840 rubles, which he reported to the tax office by filing a declaration. Sergeev must pay a fee of 11,419 rubles. (RUB 87,840 * 13%) until 07/15/2019.
IP on the simplified tax system
Another way to legally rent out housing is to register an individual entrepreneur using the simplified taxation system (STS). This method has both pros and cons. On the one hand, when registering an individual entrepreneur, the amount of rental tax is not 13%, but 6%, plus a fixed annual contribution to the Pension Fund in the amount of 29,354 rubles. (from 2019 Unified Social Tax). In addition, you will need to go through the registration procedure:
- collect documents (passport, application);
- pay the state fee of 800 rubles;
- submit documents to the INFS at the place of registration (in person, by mail or using the electronic resource on the Federal Tax Service website);
- make advance payments of 6% of the rent amount every quarter.
If all documents are filled out correctly and provided in full, then after 3 days you will receive a registration certificate and an entry sheet in the State Register.
- for the 1st quarter of 2019 – until 04/25/2019.
- for the 2nd quarter of 2019 - until July 25, 2019
- for the 3rd quarter of 2019 - until 10/25/2019
- for 2019 - until March 30, 2019
It is important to know that in addition to tax, you, as an individual entrepreneur, need to pay contributions to extra-budgetary funds. If you rent out housing yourself and do not have registered employees, then in 2019 you will have to pay a fixed amount of 29,354 rubles. All contributions to the funds for 2019 are transferred until December 31, 2019. The amount of contributions reduces the tax amount at a rate of 6%. And if contributions are paid quarterly, then they will reduce the tax within a year. And if once a year, then the reduction will occur at the time when their actual payment is due. The deduction procedure is simple:
- You pay your dues quarterly;
- at the end of the year, you submit a declaration in which you indicate payments to extra-budgetary funds;
- calculate tax at a rate of 6%;
- subtract the amount of transferred insurance premiums from the tax amount;
- the difference is payable by the due date of the advance payment.
Taking into account the additional costs and registration, this method looks unattractive for the landlord. In order to understand whether there are real savings here compared to paying personal income tax, let’s consider an example with the conditions described above.
Example 2
Resident of Tula Sergeev S.L. I registered an individual entrepreneur on the simplified tax system and rent out my own apartment. According to the agreement, employers pay Sergeev 7,320 rubles. per month. For 2018 Sergeev:
- received an income of 87,840 rubles. (7.320 * 12 months);
- transferred insurance premiums of 26,545 rubles. (this amount was in 2018, respectively, for each quarter - 6,636);
- calculated the tax according to the simplified tax system, which must be paid quarterly (87.840 * 6% / 4 = 1.318).
Since the amount of insurance premiums that Sergeev transfers every quarter (6.636) is more than the simplified tax system fee of 6% (1.318), then there is no need to pay tax - the deduction covers it in full.
Let's compare the results obtained with an example of calculating personal income tax: under the same conditions, the total expenses of the landlord-individual entrepreneur amounted to 26,545 rubles, the owner for personal income tax - only 11,419.
Landlord on patent
Another way to legally rent out housing is to apply for a patent. Its essence is that when purchasing a patent, you pay the fee “in advance” based on the average possible annual income that you can potentially receive at the end of the year. This indicator is fixed by law. Its size is determined by regional authorities. You have the opportunity to buy a patent for a certain type of activity (in this case, rental housing) for a period of 6 or 12 months.
You can buy a patent only after registering an individual entrepreneur. Having in hand a certificate of registration of an individual entrepreneur and an application for the use of the PSN (patent tax system), go to the tax office at the place of registration. The patent will be issued to you within 5 days, its validity begins from the moment of issue.
The PSN, like the simplified tax system, is beneficial for owners who rent out not one, but several expensive apartments. That is, they have high incomes. This is because the tax base (potential income) tends to be above average. And although the tax law limited the base to 1,000,000 rubles, regional legislators have the right to increase it up to 10 times for individual landlords. For example, owning a home up to 75 sq. m in Moscow, you will have to pay 36,000 rubles.
Responsibility for non-payment of tax
Above, we described the procedure for officially registering a lease and analyzed how it is more profitable to pay income tax. But few owners resort to such transparent relationships with the state. Many owners rent out an apartment without paying taxes, without declaring the income received. What then awaits the violators? We'll talk about this below.
How to identify the violator
If you rent out an apartment and do not pay taxes, then information about such activities may be available to the authorities. Neighbors often talk about this. If there is noise, guests disturbing the residents of the house, or disorder on the floor, you can be sure:
- one of the conscientious neighbors will definitely inform the district police officer about this;
- Also, similar information can be obtained from public law enforcement organizations, if they exist in your city.
As soon as the district police officer receives information about possible illegal activity, he conducts a walk-through, interviews residents, and obtains information about residents and possible illegal tenants. Then you, as the owner, are interviewed, including checking personal documents and confirmation of ownership of the home. All information is documented in the form of statements and written explanations. This data is sufficient to confirm the fact of illegal rental. Then the information is transferred to the Federal Tax Service.
Another way to identify the violator is the Rosreestr database, where lease agreements for a period of 1 year or longer are registered. But, as we said earlier, the owner can sign a contract for a period of 11 months. In addition, the laws do not contain a direct requirement to register contracts for up to 12 months.
Arbitrage practice
If the Federal Tax Service has sufficient documentary grounds and evidence of a violation, then the case is sent to court. Although the tax office can, through its own inspection, hold you accountable (charge taxes, fines and penalties).
If the tax authority does not have a lease agreement
- When there are no supporting documents in the form of an agreement, it will be very difficult to prove the fact of the lease.
- The basis for the accusation in this case is the testimony of neighbors who state that people living in the apartment are not registered there, and the guests often change.
- But “resourceful” owners prove in court that relatives live in the apartment for free, because this is not prohibited by law.
- In this case, the tenant should understand that the court may require confirmation of relationship. In addition, by deceiving the court, the owner may be punished for giving false testimony.
- However, judicial practice shows that it is almost impossible to prove the fact of a lease based on “denunciations” from neighbors alone.
If the Federal Tax Service has a lease agreement
The situation is more complicated if the Federal Tax Service has received the executed lease agreement. But even here, options are possible, because you still need to prove the fact of transfer of money. This can be done if payments are made through bank payments, and if you receive money “in hand” without receipts, then there is no confirmation of payment in this case. One of the tricks of violating landlords is to draw up an agreement for free use, that is, in principle, there can be no payment under this agreement. In fact, the owner receives money from employers in cash without documents.
Fines, penalties, criminal liability
Although it is difficult to prove the fact of receiving income from the illegal rental of housing, such cases still occur. What awaits the violator?
The main government complaint is that the owner, having received income, did not give his “share” to the budget in the form of taxes. Therefore, the first thing that the Federal Tax Service Inspectorate, having received confirmation of the lease from the Ministry of Internal Affairs, will require is to pay off the debt on budget fees. To this amount you need to add:
- Penalty for non-payment of tax. The amount is 20% of the arrears. If the court proves that evasion of payment was committed intentionally (and in most cases this is exactly what happens), then the fine increases to 40%;
- The fine for failure to submit a declaration is 5% for each month of delay. The declaration must be submitted by April 30. If on 09/01/2019 you paid off your tax debt for 2018 in the amount of 3,420 rubles, then you need to pay an additional fine of 684 rubles. (3.420 * 5% * 4 months). In this case, the amount of the fine is limited to 30% of the debt amount, but cannot be less than 1000 rubles.
- Penalty for late tax payment. The indicator is calculated for each day from the last day of payment (established by the Tax Code) until the day of actual payment. The penalty is determined by the formula: P = 7.75% / 300, where 7.75 is the Central Bank refinancing rate. That is, when paying off a tax debt in the amount of 3,420 rubles, you will need to pay an additional 0.9 rubles. (3.420 * 7.75% / 300) for each day of delay.
For those who have violated the law not for the first time, the responsibility becomes stricter: the violator will have to pay a fine twice as much as required.
Criminal liability
- If the total collection debt turns out to be more than 900,000 rubles, then you will need to pay tax. The court will also impose a fine of 100,000 - 300,000 rubles, or the owner may be imprisoned for up to 1 year.
- A violator whose debt to the budget is more than 4 million rubles can also go to prison. If the fact of guilt is proven, the lessor can be imprisoned for up to 3 years.
- In addition, if several apartments are rented and the owner has not registered an individual entrepreneur, then he may be recognized as an illegal entrepreneur. The annual income of such an owner must be more than 2 million. The punishment is also severe - a fine (from 100 thousand to 300 thousand rubles) or imprisonment for up to 2 years.
As you can see, it can sometimes be very difficult to prove the owner’s guilt. But if the court nevertheless proves that you rented out the apartment without taxes, then liability for violations can be very serious.
Example 3
In 2017 Savelyev K.D. rented out his own room unofficially. Savelyev did not file a declaration by 04/30/2018 and did not pay tax in the amount of 4,630 by 07/15/2018. The court proved Savelyev’s offense, he paid the fee on 09/30/2018. In addition, Savelyev was charged a fine for non-payment, a penalty for late payment, and a fine for failure to submit a declaration. Let's calculate each amount:
- The penalty for non-payment is 926 (4.630 * 20%).
- The penalty for each day of delay is 1.62 (4.630 * 10.5% / 300). For 77 days (from 07/16/2018 to 09/30/2018) Savelyev will pay 124 (77 * 1.62).
- The fine for failure to submit a declaration is 231 for each month (4.630 * 5%). Savelyev was 5 months overdue, so he will pay 1.155 (231 * 5 months).
Thus, Savelyev will pay 6.835 (4.630 + 926 + 124 + 1.155) to the budget.
Question answer
Question:
If the landlord has registered an individual entrepreneur using the simplified tax system, should he keep records of expenses?
Answer: No, if he applies a rate of 6% of income. If an individual entrepreneur operates at a rate of 15%, then records must be kept. This is due to the fact that the tax base is calculated using the formula “income minus expenses”. Practice shows that most landlords register individual entrepreneurs at a rate of 6%. This is beneficial since the owner does not have employees and does not incur significant costs for services and materials that must be taken into account.
Question:
The landlord has rental income in excess of 300,000 per year. Does the tax rate change for him?
Answer: No, the rate remains the same. But if at the end of the year you managed to receive an income of more than 300,000, then you additionally need to transfer 1% of the income to the Pension Fund.
If you have questions about the topic of the article, please do not hesitate to ask them in the comments. We will definitely answer all your questions within a few days. However, carefully read all the questions and answers to the article; if there is a detailed answer to such a question, then your question will not be published.
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Any transactions with property, including rental, regulated by certain legislative acts. When renting out living space or renting it, the owner must be guided by the following two basic documents:
- Housing Code of the Russian Federation– this document sets out the basic rules for using housing and responsibility for violating them.
- Civil Code of the Russian Federation– separate chapters of this document are devoted to the issues of real estate delivery:
Responsibility
The legislation does not provide for a separate article or law that would contain. However, in case of such a violation, punishment will be applied on the following grounds:
- failure to submit a declaration(Article 119 of the Tax Code of the Russian Federation);
- tax evasion.
Tax Code of the Russian Federation Article 119. Failure to submit a tax return (calculation of the financial result of an investment partnership)
- Failure to submit a tax return to the tax authority at the place of registration within the deadline established by the legislation on taxes and fees
entails the collection of a fine in the amount of 5 percent of the amount of tax not paid within the period established by the legislation on taxes and fees, subject to payment (addition) on the basis of this declaration, for each full or partial month from the day established for its submission, but not more than 30 percent of the specified amounts and not less than 1,000 rubles.
- Failure of the managing partner responsible for maintaining tax records to submit a calculation of the financial result of the investment partnership to the tax authority at the place of registration within the period established by the legislation on taxes and fees
entails a fine of 1,000 rubles for each full or partial month from the date established for its submission.
If in the first case liability is established only tax legislation, then in the second this can happen both on the basis of the Tax Code of the Russian Federation and according to the Criminal Code of the Russian Federation.
Depending on the severity of the offense, liability is provided.
Collection the total amount of all unpaid taxes– this measure is mandatory and always applies. In addition to the amount of the tax itself, you will also have to pay a penalty for each day of delay.
Imposition of a fine for failure to submit a declaration in the amount of 5% of the amount of debt. Moreover, its minimum amount is 1000 rubles, and the maximum is 30% of the debt.
Imposition of a fine for non-payment of tax - its amount is:
Criminal liability– a specific measure is established by Art. 198 of the Criminal Code of the Russian Federation and depends on the severity of the violation.
If the amount of tax debt is more than 600 thousand rubles. three years, the following measures may be applied:
- a fine in the amount of 100 to 300 thousand rubles;
- forced labor (for up to a year);
- arrest for a period of up to six months;
- imprisonment for up to a year.
If tax debts fall into the category especially large(that is, exceed the amount of 3 million rubles for three financial years in a row), then the responsibility becomes stricter:
- a fine in the amount of 200 to 500 thousand rubles;
- forced labor or imprisonment for a period of up to three years.
This list of measures is exhaustive; no other liability for non-payment of taxes is provided. For example, the owner will not be able to evict from his living space or take it away.
Despite the presence in the legislation of such serious liability for the illegal letting of real estate, in practice it is rarely used.
This is due to the fact that it is very difficult to prove the fact of an offense, because this requires documentary evidence that the living space is actually rented out to someone.
Considering that this is not in the interests of both parties to the transaction, it is very difficult to find such documents.
You can learn how quickly and correctly from our article.
Step-by-step instruction
If the owner has nevertheless decided to officially lease or rent the property, he needs to know how to carry out this procedure correctly. An approximate algorithm of actions is as follows:
Step 1. Preparing housing for delivery to tenants. At this stage, you need to make the premises as attractive as possible for tenants: carry out cosmetic repairs (if necessary) and provide additional amenities (for example, install the Internet and install air conditioning).
Step 2. Finding a tenant– this can be done either independently or with the help of a special real estate agency. Searches can be carried out through many channels: using the media, the Internet, acquaintances or friends. You can read about renting out living space on our website. It is necessary to inspect the property with potential residents and tell them about all the advantages and disadvantages of the property.
Separately, it is worth raising the question regarding the availability utility debts. Of course, their payment does not pass on to the tenants, but the parties can voluntarily resolve this issue. For example, agree on the repayment of part of the debt to pay the cost of rent or transfer the debt to the owner.
Step 3. Preparation of necessary documents.
To conduct a rental or rental transaction, you will need:
- renter's passport;
- employer's passport;
- documents confirming ownership.
Amount of deductions
As already noted, the main reason why owners rent out real estate unofficially is the need to pay tax on the money they receive. This type of income is income, so it subject to personal income tax. The rate of this tax, depending on the payer, is set at:
- 13% - if the income is received by a Russian citizen;
- 30% – if the recipient is a foreign citizen.
Obviously, in each of these cases the amount is quite large.
However, there are several completely legal ways to reduce the amount of required deductions.
For this you need register with the tax office as an individual entrepreneur and select one of the available tax systems:
- simplified tax system. In this case, the owner will become an entrepreneur and will be able to pay less deductions on the income received - 6%. However, annually you will need to pay an additional amount for mandatory insurance premiums.
- – in this case, there will be no need to pay taxes at all, but you will have to pay a decent amount for the patent (the exact cost depends on the specific region). Fund contributions can also be added to the cost of acquiring a patent.
A less legal way to reduce the amount of tax is understatement of the amount of payment in the contract for housing.
However, the owner is at risk, because in case of non-payment, he will be able to recover from the tenant only the amount specified in the contract.
You can find out what this includes from our article.
Through an agency
To simplify the process of renting an apartment, owners can use the services of an agency and enter into an agreement with a realtor. In this case, it is also possible to rent out the housing officially, with the intermediary taking on the bulk of the work. In particular, he may have the following obligations:
- preparation of all documents necessary for the transaction;
- searching for potential tenants;
- organizing housing advertising;
- holding a show;
- execution of the contract.
IN realtor services many other obligations may also be included - more precisely, they are fixed in the agreement with the agency.
If desired, it will also be possible insure the apartment and all property located in it from possible damage.
The only drawback of this method is the need pay for agency services.
However, if you contact a reliable company with good reputation, then the benefits from this will significantly outweigh the financial losses.
Official rental of real estate is not used among owners especially popular since as a result of this transaction it is necessary to make tax payments to the budget.
However, the risks for both parties to hiring or leasing are also minimal, since official contract guarantees compliance with all their rights and obligations.
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Time is money. This expression becomes especially relevant when you urgently need to rent out an apartment. In rather extreme conditions of haste, private property owners often make many mistakes and errors, which ultimately cost too much, and the cost is not only money, but also spoiled nerves. In addition, empty housing space requires constant payments, and therefore it must be rented out, at least in order to cover them.
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Very often, owners leave apartments empty, simply because they do not know how and what to do, how to fill out the documentation correctly and, in the end, simply to avoid becoming a victim of ordinary scammers or unreliable tenants. Let's look at how to officially rent out an apartment, what it gives and how to arrange everything correctly.
Official rental of private housing is the most optimal and profitable transaction from a legal point of view. In addition, this method of renting out an apartment is the safest, first of all, for the owners themselves.
Advantages of legally renting an apartment
- There is no need to be afraid that the tenant will do who knows what to her and will not run away without paying for accommodation and utilities. In this simple way you can eliminate the possibility of fraud with your property.
- Renting to friends or relatives by concluding an oral agreement “in words” is also not the best option. The only plus is that you will know the people who live in your apartment. But, if renting out an apartment for you is, first of all, getting good passive income, then it is better to find unfamiliar tenants and finalize the deal at a decent price and in accordance with all the rules.
- This method helps to foresee as much as possible all future expenses for the apartment, including even paying for telephone calls from residents. A formal lease agreement includes all payment items and responsibilities of both parties.
- In addition, you can rest assured that there will be no problems with the tax authorities, and you will not be held accountable for concealing profits.
What documents are needed to formalize the contract?
Drawing up a rental agreement for an apartment does not require collecting a large package of documents and various certificates, as, for example, for purchasing it. The standard set includes such mandatory documents as:
- A certificate of ownership of housing in the case or an agreement that confirms the right to its property (for example, it could be a purchase and sale agreement or a Donation agreement);
- List of everyone registered in the apartment (extract from the personal account in the housing office);
- Notarized consent to rent from all owners of the apartment, if there are several of them. In addition, they must be present during the conclusion of the contract. This fact can save you from various future problems that may arise from the intervention of the co-owners of the apartment if they do not agree with its rental.
The tenant must provide a passport.
Lease agreement: what is it for and what should be included in it?
An apartment rental agreement is an official document that confirms the legal lease of real estate and contains all the information about the transaction, its terms and conditions, as well as the guarantees and obligations of both parties. It is concluded between two parties: the landlord and the tenant. This is an important component of the question of how to properly rent out an apartment.
Today, two types of property rental agreements are practiced:
- Lease agreement. It is concluded in cases where you rent out an apartment to an individual (Chapter 35 of the Civil Code of the Russian Federation). This type of agreement is not subject to mandatory registration, regardless of the duration of its term.
- Lease contract. Necessary for concluding a transaction with legal entities (Chapter 34 of the Civil Code of the Russian Federation). It must be registered if it is concluded for a period of 1 year or more.
The importance of a formal rental agreement cannot be overestimated. The obligatory presence of such a document will make your life ten times easier and save a lot of money and nerves in the future. So it is important to pay maximum attention to it when decorating.
The absence of an agreement is an unjustified risk for the lessor and there are many reasons for this, for example:
- You will not be able to “sue” debts if you are suddenly “lucky” with unreliable tenants who do not pay rent for accommodation and utility bills.
- In addition, it will be impossible to compensate for damaged property or theft of personal belongings, which is quite common in practice.
- It’s trite, but even the police will not accept your statement about problems with tenants if there is no official lease agreement that confirms the fact of renting out the property.
- If the new residents flood their neighbors or cause them other damage, then you will certainly have to pay compensation.
What information must be recorded in the contract:
- monthly rent amount,
- payment terms, down to the date and time,
- the use of personal property of the apartment owners, what and to what extent is permitted,
- payment of all utility costs, size and amount, information about who will pay them - the tenant or the landlord, this will help avoid many conflict situations in the future,
- obligatory exact time and procedure for checking the rented apartment and the property in it by the homeowners,
- information about the privatization of housing, its owners,
- the number of future residents must be indicated,
- the procedure for the return of funds in case of non-payment, as well as the procedure for compensating possible material losses to the lessor in cases of unlawful actions of tenants,
- additional agreements that do not contradict the law, but are important for both parties.
As a mandatory annex to the agreement, there must be an act of acceptance and transfer of personal property of the apartment owner, which indicates the fact of transfer of the apartment and all property in it. Thanks to the use of such a document, all possible risks of damage to both the home and all your belongings during the residents’ stay are significantly reduced.
Of course, even if an agreement is concluded, both parties have certain risks. The tenant has the right to know and must be sure that you have the official right to rent out housing, and also that there are no unpleasant problems with the apartment, that all utility bills have been paid and there are no debts. All this information is honestly negotiated in advance, after which it is mandatory to indicate it in the contract upon conclusion. The tenant must confirm that he is familiar with the information about the housing and has no complaints.
As additional important information, the contract may contain data confirming the solvency of the tenants (for example, a certificate from the place of employment, which indicates the names and telephone numbers of contact persons who can confirm the information provided by the tenant).
A separate paragraph indicates that this apartment is not rented to anyone else, that it is “clean”. You should not limit yourself to certain standard phrases; it is important to indicate in as much detail as possible all the information about the housing and the property in it, as well as all oral agreements with the tenant. In this case, both parties to the transaction will be able to avoid possible unpleasant consequences, or protect their rights in cases of unlawful actions of the other party.
Transferring money to pay rent
The final and most important stage of the transaction is the transfer of money. It is important to take it as seriously as possible. Today there are several ways to carry out this procedure:
- From hand to hand- the easiest and fastest way. But it may not always be convenient for both parties, since it is necessary to find time to carry out this process. Often, neither side can sacrifice this kind of time, especially if this happens during the day. This is explained simply - often during the day people are at their workplaces. If funds are transferred in cash, be sure to conclude an act of acceptance and transfer of money or write a receipt with the specified amount, date, payment period and signature.
- Using various non-cash accounts, for which residents pay rent for housing within a certain period of time. In this case, it is important for the tenant to keep all receipts.
Absolutely all payment manipulations are carried out on the basis of a concluded agreement and cannot be changed unilaterally. Both parties must follow the pre-agreed terms of the deal. If this is a transfer of money from hand to hand or to authorized persons, then it is necessary to provide documents that confirm the existence of a power of attorney. Transferring funds through banking institutions by crediting to an account simplifies the entire process several times. Moreover, the fact of transfer of money, if all receipts are saved, is almost impossible to challenge or deny.
There are no trifles in such an important matter. Any little thing can play a cruel joke on you and be very expensive. This means that personal reinsurance is always much better and more expedient than trusting strangers.
How to properly pay state taxes for renting real estate?
If you are interested in how to officially rent out an apartment, then you should also know about paying taxes. In practice, different methods of renting apartments are used in Russia and they are not always supported by law. Renting housing property without paying taxes is a reality, not a fiction. According to statistics, about 60% of owners who independently rent their homes do not pay taxes to the state. As a rule, this option is fraught with unpleasant consequences and problems with the relevant government agencies.
Most often, a banal situation occurs - it is the neighbors of such tenants who expose dishonest “dealers”; this usually happens when the housing is rented by someone unknown and in the event of hooligan behavior at night. Naturally, neighbors begin to complain and unofficial rentals with non-payment of taxes come to light.
There is a way to rent out an apartment officially and not pay taxes by turning to intermediaries represented by real estate agencies. But in this case, the lion's share of the profit goes to them. It is more profitable to do everything yourself and according to the law. But how?
According to the law, real estate can be leased by persons who are engaged in private entrepreneurial activities, as well as by persons without registration as an entrepreneur (according to the norms of the Tax Code).
In this case, the object of taxation is determined by calculating the rent, which is specified in advance in the official agreement between the landlord and the tenant of the living space. Property rental tax is provided at a mandatory rate 13% of the income received from the rental of property. This income is usually the amount specified in advance in the official contract and paid to the owner.
In some cases, the interest rate is 17% of the excess amount, taking into account all previously provided taxes: if the total amount of income received by the taxpayer for the last reporting month exceeds the minimum wage by ten times.
How does this process work in practice?
The owner of the apartment, who is also the lessor, at the end of the year independently submits a tax return for an individual (form 3-NDFL). This declaration is submitted to the tax inspectorate at the place of direct business activity. In another case, the completed declaration is submitted at the location of the property.
After some time, a receipt arrives in the mailbox that needs to be paid. The deadline for filing a return and paying taxes for the past year is April 30 of the new year.
For activities related to the rental of real estate, you can register a private enterprise. This will significantly simplify the entire scheme for paying income taxes. To do this, it is necessary to register a business entity - an individual or individual entrepreneur. The easiest way is to register an individual entrepreneur and pay 6% on profits under a simplified taxation system.
Possible difficulties when completing a transaction
Real estate lease transactions do not always go smoothly and quickly. In order not to learn from your bitter experience, you can simply take note of the typical mistakes that are very often made when designing:
- When concluding a contract, it is better to specify the lease term immediately. And if it exceeds 12 months, then it must be registered with the Federal Registration Service. In this case, the amount of state duty is paid by the tenant, and the lease agreement is registered in the name of its owner. Such an agreement acquires full legal force and can act as an official document in cases of resolving various controversial and conflict situations.
- To avoid various unpleasant situations in the process of renting out housing, it is important to independently control the entire process. In addition, do not be lazy and ask future residents as much information as possible. It is also advisable to check it for accuracy, for example, call your work and make sure that such a person really works there.
- Taking every detail seriously in this serious matter is a guarantee of avoiding possible problems. Therefore, a favorable outcome of the transaction and receipt of future profits in full without unnecessary losses depend on your responsibility and awareness.
Do I need to notify the district police officer?
Some are convinced that in order to fully legalize the rental of an apartment, you need to notify the district police officer that people unfamiliar to him live on his territory. However, the law does not provide for a rule that would oblige the owner to notify the district police officer that he has rented out an apartment. This is due to the fact that the right to dispose of property belongs only to the copyright holder. No outsiders, including the district police officer, can prohibit the exercise of his rights. At the same time, the district police officer, who conscientiously fulfills his duties, himself finds out who the apartment is rented to and who lives there.
The material was prepared with the help of the director of the Miel-Arenda company Maria Zhukova, the head of the rental department of the Azbuka Zhilya company Roman Babichev, lawyer Oleg Sukhov and lawyer of the Central Bar Association Daria Zhidkikh.
How much taxes will you have to pay?
If you rent out an apartment as an individual, you will have to pay 13% of your income. According to the simplified taxation scheme, an individual entrepreneur must pay 6%, but at the same time he pays fixed contributions, which amount to 21 thousand rubles per year. Therefore, when renting out an inexpensive apartment, there is no point in registering as an individual entrepreneur.
If you purchase a patent, then, as already mentioned, the amount will depend on the area and regional rates. For example, an annual patent for a 40-meter apartment on Arbat in Moscow will cost 27 thousand rubles, in Northern Butovo - 12.6 thousand rubles, and in the Magadan region - 7.2 thousand rubles.
What needs to be done to legalize the delivery? Do I need to register as an individual entrepreneur?
First, you need to conclude an agreement with the tenant. As an appendix to it, you must draw up an apartment acceptance certificate and a document in which the fact of monthly payment will be recorded. Then the owner-lessor, with these documents, as well as a passport and documents confirming the right to own and dispose of this apartment, contacts the tax authority and submits a declaration in form 3-NDFL. This must be done for the past year by April 30 of the next year, and the tax itself must be paid by July 15. In this case, the owner rents out the apartment as an individual.
The second option is that the landlord can register as an individual entrepreneur. Individual entrepreneurs must also pay annual insurance premiums and must file a tax return. The tax is paid quarterly, the tax return is sent once a year until April 30 of the current year for the previous year.
There is another option - to purchase a patent for renting out an apartment. In this case, the apartment owner also needs to register as an individual entrepreneur. The validity period of a patent ranges from one month to one year, but must not “roll over” to the next calendar year. If a patent is purchased for a period of up to six months, then its cost is paid immediately and in full. If a patent is purchased for a period of up to a year, then you can first pay one third of its cost, and a month before the end of its validity period - the remaining amount. The tax is paid in a fixed amount based on the rates established by the subject of the federation and its area. A calculator for calculating the cost of a patent (that is, the amount of tax that will have to be paid) is provided on the website nalog.ru.
Receiving income from renting out an apartment is not a business activity, so a citizen does not have the obligation to register an individual entrepreneur. Citizens who receive income from renting out an apartment are registered as individual entrepreneurs only for the purpose of optimizing the taxes payable, that is, reducing the amount of taxes payable compared to the amount of taxes that citizens who are not individual entrepreneurs have to pay.
Isn’t concluding an agreement enough?
A written lease or commercial lease agreement is one of the components that ensures the legality of providing an apartment for temporary possession and use. However, if the parties have stipulated that the agreement is concluded for a period of more than 1 year, then it must be submitted to Rosreestr no later than a month from the date of conclusion to register the encumbrance of the property. The Code of Administrative Offenses of the Russian Federation contains administrative sanctions for violators: for failure to comply with the procedure for registering an agreement, a fine of 1.5 to 2 thousand rubles is imposed, and for late submission of an application for registration of an encumbrance, a fine of 5 thousand rubles is provided (Parts 1, 2 of Article 19.21 Code of Administrative Offenses of the Russian Federation).
How to conclude a contract correctly?
There are several types of contracts. There are long-term and short-term rental agreements, which are concluded between two individuals for a period of up to one year and for a period of more than a year. There is also a lease agreement, which is concluded between a legal entity and an individual. All of them are in writing.
A well-drafted agreement has two dozen clauses, some of them are standard, and some depend on the agreements of the parties and the specific case. The agreement must specify the citizens who will live in the apartment together with the tenant/tenant, establish the amount of payment for the use of the property, and determine the procedure for paying utility bills. In a separate document, the parties describe the condition of the property being leased and indicate a list of furniture and equipment, if the apartment is rented furnished. The standard condition is the establishment of a guarantee payment - a sum of money that guarantees the owner that he will receive compensation if the tenant moves out of the apartment without warning in advance, or damages the property in the apartment.
It is recommended to specify the number and order of visits to the apartment by the owner (with prior notification to the tenant living in the apartment or without notification), the amount of rent, the procedure for making payments, and other payments that fall on the tenant’s shoulders (payment for electricity, etc.).
If the apartment has several co-owners, then they all must sign the agreement. Or the right to rent out an apartment can be transferred to one of the owners on the basis of a notarized power of attorney. Otherwise, a co-owner or even a person simply registered in the apartment has the right to live in this apartment. The tenant can ask the landlord for an extract from the house register to make sure that the agreement is signed by all owners and registered in this apartment. In this case, you need to pay attention to the date of issue of the statement - its validity period is one month.
A rental agreement signed by both parties is a legally significant document and is accepted for consideration in courts and other authorities.
What are the dangers of illegal surrender?
Illegal apartment rental is dangerous primarily due to unexpected significant financial losses. For example, the tax authority, having learned that the owner does not pay taxes to the federal budget, has the right to bring him to civil liability in court. As practice shows, sanctions for many individuals turn out to be burdensome, since in addition to collecting the principal amount of the debt, penalties and fines are assessed for failure to submit a tax return and failure to pay the due date. In the worst case, individuals may be brought to criminal liability, which is fraught with a criminal record and a fine of up to 300 thousand rubles or imprisonment for up to one year (Article 198 of the Criminal Code of the Russian Federation).
In addition, your tenants may turn out to be scammers and use the apartment you rent to house, for example, illegal migrants. In this case, the owner of the apartment risks becoming involved in a criminal case for organizing the illegal stay of foreign citizens in the Russian Federation (Article 322.1 of the Criminal Code of the Russian Federation). It is unlikely that the owner will be brought to real criminal liability, but he is guaranteed unpleasant moments with the police, because he will have to explain for a long time and frankly why he illegally rented out his apartment, and how illegal migrants ended up in it without his knowledge.
The rental market is traditionally “gray”, and it is difficult to calculate how many transactions are made on it. Accordingly, it is impossible to say exactly what share of them is in full compliance with the law. Some experts give an approximate figure of 40%. In addition, there is evidence that in the economy and comfort class segment, 5-10% of apartments are legally rented, and the owners of apartments rented for more than one hundred thousand rubles per month almost always act according to the rules.
At the same time, the number of those who keep the law is gradually increasing.
