Non-residential real estate has become such a part of our lives that it is difficult to imagine any city in the country without it. And even in a small locality, you can easily find many types of non-residential real estate. When will you know what it might be like and where it might be.
After reading this article, you will understand what non-residential premises are like. And you will begin to distinguish them from each other. Familiarize yourself with the types of permitted uses of non-residential premises and their intended purpose. You will learn all the pros and cons of owning such real estate and other nuances.
Let's start our study of non-residential real estate with the most familiar apartments and so-called residential premises, or boathouses. Which each of us encounters when renting inexpensive housing on vacation by the sea.
Residential premises - what are they and how do they differ from apartments?
Apartments
Recently, a fashionable trend among developers.
The construction of residential apartments belonging to the non-residential real estate stock began. The first apartments appeared after one of the developers was refused by the state commission to put the house into operation and assign it the status of a residential apartment building.
But the enterprising developer did not despair about this, and since the new building was located in a prestigious area of the city. They decided to sell the apartments without the possibility of registration in them.
The apartments for sale had all the same functions as regular housing in a neighboring building.
The only difference is that utility bills for such a “pseudo” apartment had to be paid as for non-residential premises.
And the size of the communal apartment itself was slightly higher than in ordinary apartments, but this difference was not critical.
But the cost per square meter of such real estate was significantly lower than the cost per square meter in an ordinary apartment. For sale in the same area of the city.
Boathouses
In the southern regions of Russia and in the central areas of large cities, residential garages have become popular.
Related to non-residential property. People called them boathouses because of their original purpose. Such garages were first built on the coastline of reservoirs, rivers and lakes for the purpose of storing motorboats and small boats.
And the top floor of the boathouse was an insulated living space with the possibility of being used as a summer house near the water.
Living spaces
Over time, in the southern regions of Russia. Another type of non-residential premises was added to the boathouses.
They turned out the same way as the apartments due to the fact that the state commission did not accept the new building. Due to the impossibility of connecting the required communications to it or due to other violations.
Allowing the constructed building not to be recognized as a self-construction and to receive the status of an independent real estate object. But it was impossible to call this building a residential building with apartments.
Therefore, the property documents issued for such pseudo apartments are in the line, the real estate object. Contained the entry “residential premises”, not “apartment”
That is, registration in residential premises belonging to the non-residential real estate fund was also prohibited.
Enterprising citizens of the southern regions, at first, took advantage of the ignorance of citizens from other regions of the country. After all, people have never encountered the new term “living space.” And they thought they were buying an apartment.
The number of deceived citizens grew like a snowball until bloggers began to cover this problem. Which posted explanatory videos on YouTube video hosting. With signs of a living space and its differences from an ordinary apartment.
The reason why entrepreneurs managed to fool people for so long and sell non-residential real estate under the guise and at the cost of apartments.
It turned out that the building, which housed residential premises, was externally similar to an ordinary apartment building.
That is, looking at the boathouse, a person immediately sees a garage with an upper residential floor above it in the form of a superstructure.
And when inspecting a residential premises, the client is cunning realtors. It looks like an ordinary new building with ordinary apartments selling below market.
And the realtor’s promises that the price is lower, since there is no water in the house yet. But she's about to be connected.
But in fact, technically it is simply impossible to connect water to the house. And why do this when all the living spaces in the house are already sold out. Like hot cakes.
Now let's see if it's worth getting involved with the purchase of such non-residential real estate.
After all, boathouses, apartments and living quarters have both their advantages and disadvantages.
Where to go for translation
Today, the procedure for submitting documents in many regions has been simplified thanks to Multifunctional Centers that operate on a one-stop-shop principle. In one place you can submit all documents, in some cases, order certificates and receive the corresponding document after all procedures are completed.
You will need with you:
- Application for transfer;
- Documents that confirm your right of ownership;
- Documents from the BTI: technical plan, technical passport, floor plan of the house;
- If, when changing the status, some kind of redevelopment is necessary, you are also required to provide a design for it.
You must find out whether you can transfer your premises to another fund or not within 45 days. This is how long it takes to review the application and check the documents provided.
Once the decision is made, the authorized bodies have three days to notify you of their consent or refusal. The relevant paper can be sent by mail or sent to the Multifunctional Center.
A notification can also be sent to your email.
The advantages of apartments, living quarters and boathouses include:
- Low rental cost from the owner;
- Quite a large area.
Since a boathouse usually consists of several floors and a basement;
- Low cost per square meter when purchasing a boathouse or residential premises and apartments.
Cost 1 m2 of non-residential real estate, with the possibility of living. It can be 20 - 50% lower than the cost of 1 m2 of apartment;
- No complaints from neighbors when running a rental business in non-residential premises;
- Relaxations in legalizing redevelopment in such premises.
Since this is already a non-residential premises, supervision is not carried out as closely as in apartments.
Requirement of a separate entrance
Having a separate entrance is a mandatory requirement when converting an apartment into a non-residential building. In addition, if the total area of the room is greater than or equal to 100 sq. m., then the redevelopment project includes a requirement to equip another exit.
Permission to install a separate entrance is issued by the local administration. Before submitting such an application, you need to coordinate the redevelopment project with services such as SES and fire inspection. Specialists will check compliance with fire safety and construction standards and mark the approval in the relevant part of the project.
You must provide the local administration with:
- Application for permission to install a separate entrance.
- Certificate of ownership.
- Technical plan of the premises.
- Project for redevelopment of the premises with the approval of the fire inspection and SES.
- Minutes of the general meeting of residents of the house with a positive decision reflected in it.
The architecture department of the administration reviews the received documents and, within the period established by local regulations (which is usually 30 days), gives the applicant consent to obtain a separate entrance or a reasoned refusal.
In case of refusal, the applicant has the right to correct the comments and submit a similar application again. If a positive approval is received, he carries out construction and installation work and applies to the administration for a certificate of redevelopment. The act is drawn up with the participation of representatives of the Municipal Property Management Committee, architecture, construction department and housing and communal services committee.
After receiving the redevelopment act, you need to contact the BTI or other specialized organization to make changes to the technical plan, then make changes to the Civil Code and change the information in the certificate of ownership.
The disadvantages of owning non-residential premises include:
- Low liquidity of such non-residential premises.
If you want to sell such real estate, you will either have to wait a very long time for your buyer (possibly 3-4 years). Or make a significant discount on this premises, sometimes reaching up to 30% of the cost at which the premises were originally purchased;
- The next disadvantage will be the high property tax rate.
The rate will be 1.3 - 2% of the cadastral value, instead of 0.15 - 0.3% as for ordinary apartments;
- And the most important disadvantage will be the lack of possibility of registration in such a premises. Even despite the possibility of living in it. And the external resemblance to an ordinary apartment.
Thus, apartments and boathouses are suitable only for those people. Who already have an apartment and registration. And such non-residential premises are purchased as a second home.
Otherwise, the owner and his family members will not have continuous Moscow registration.
You need to be registered in Moscow for 10 years to receive the Moscow supplement.
These are new rules. And compliance with them is necessary to receive monthly social benefits. Persons who have reached retirement age.
Attention!
Many people only learn this fact when they reach retirement age when they come to fill out documents for a pension payment. So prepare your straws in advance. And by the time you retire, you should already have a residence permit in Moscow of 10 years or more.
Since from 2021 the total amount of the Moscow pension has been adjusted to a minimum of 21,100 rubles. Pensions may be higher, but not lower. (This is provided that you were registered in Moscow for 10 years at the time of retirement).
That is, even if you didn’t have much work experience, and your pension is only 12,500 rubles.
Moscow pays up to 21,100 rubles as a social benefit to people registered for over 10 years.
- Also, in the absence of registration, the whole family will be forced to visit private clinics.
Since you won’t be given a medical policy without Moscow registration either.
After all, without being attached to a clinic at your place of residence under a health insurance policy. Any appointment, even in a city clinic. There will be a fee for all family members.
And this is by no means a cheap pleasure. Any consultation with a doctor will cost 1500 – 2500 rubles. And this is not to mention the cost of the treatment itself, which will also need to be paid out of pocket.
- Also, families with children will experience inconvenience if they need to place their child in a state kindergarten or school located at the child’s place of residence.
In some cases, of course, it will be possible to do this if you have a temporary registration coupon in hand at some address in Moscow. In the house next door.
But if such registration is not possible for the child and his parents, then he will have to attend a private kindergarten. Or hire a nanny for the child.
And this is not cheap in Moscow either. A kindergarten or private school will cost from 15,000 to 70,000 rubles per month.
And a nanny for a preschool child will ask for 50,000 rubles a month for her work.
You may also need to provide her with a room for personal residence in your apartment.
- The absence of permanent registration in your passport will prevent your family members from finding employment in any government organization.
And for any other good position in a company that offers a high salary.
They probably won’t take you without registration either.
After all, a person without a permanent place of residence does not inspire confidence in the head of the company.
And you don’t know what to expect from him. And most importantly, where to look for it later. In case something happens due to the fault of such an employee.
What is the difference between built-in and built-in and other types of premises?
According to the type of construction, all non-residential premises are divided into:
- Built-in;
- Built-in and attached;
- Attached;
- Detached buildings (abbreviated as OZ).
You can easily distinguish a built-in room from an attached one.
Based on the same principle as the difference between a balcony and a loggia in an apartment building.
If nothing protrudes on the façade of an apartment building and looks monolithic, as if it were a continuation of the wall, then it is a loggia.
And when it sticks out and sticks out a meter forward from the facade, it’s a balcony.
Therefore, the same principle differs between built-in and attached premises.
Built-in room
It is very easy to distinguish a fully built-in non-residential premises.
Such premises are located on the first floors of residential buildings or any other administrative buildings.
The glass showcases of the built-in premises seem to be a continuation of the monolithic walls of the house.
Built-in and attached premises
The built-in and attached room protrudes greatly beyond the boundaries of the building's façade.
Typically, such premises are seen by residents of the second floors under their windows.
When the canopy of the store forms a fairly large area under the windows.
Where can you even play football? Or go out in the summer, put up a sun lounger and sunbathe under the sun.
Attached room
The attached premises are generally connected to the apartment building only by a small part of the wall and general communications located in the basement.
The attached premises are somewhat similar in appearance to free-standing buildings.
It may seem that they are simply built next to an apartment building and are not connected with it in any way.
But if you take a closer look or walk around such an extension, it becomes clear.
That the attached premises are physically attached to the residential building and are one with it.
Detached building (abbreviated as OSZ).
The next type of non-residential real estate is a detached non-residential building.
Which, judging by its name, stands apart from other houses and buildings.
NEOs have a fairly wide range of applications. Therefore, it is worth understanding them in more detail.
The NEO is being built on an individual foundation. And it has its own communications and its own boiler room for heating in the winter.
NEOs can act as administrative buildings, housing on their premises plant administration buildings, railway stations and airports, sports complexes, auto centers, institutions, ministries and departments of the Government of the Russian Federation or other government agencies.
So have a commercial purpose. Acting as a single platform where a large number of different organizations are represented that rent individual offices.
Such clusters with numerous offices are called Business Centers.
When an NEO consists of shops and entertainment venues, it is called a Shopping Center (or shopping center for short)
A smaller shopping center with many stores of different types, but owned by one owner. They are also representative offices and branches of large enterprises in a particular region. It is called the Trading House (abbreviated as TD).
In the early 2000s, in large cities of Russia, a fight against illegal buildings and unauthorized trade was announced.
Therefore, numerous markets, stalls, bazaars and flea markets were rebuilt by their owners into NEOs. Received the name Trade Complex (abbreviated as TK). Where, in one territory, the client received a lot of different services. Starting from the opportunity to buy building materials, ending with hair cutting or solarium.
The fight against illegal garage cooperatives and parking lots was carried out using the same principle. In this regard, underground and above-ground comfortable parking lots have appeared. Consisting of several floors and having connected communications.
The indoor parking lot is also a public safety zone, and activities there are conducted according to the established principles of a garage cooperative. With the difference that its territory has become more and more cultivated. And there are a number of advantages compared to the poorly guarded old-style parking lots of the past.
As a non-residential real estate property, the NEO also has a number of advantages and disadvantages.
What other objects are not provided for permanent residence?
Non-residential premises - an architectural object or part of it, which, according to its intended purpose, is not intended for permanent residence of people. The belonging of an object to a specific type determines the exercise of the right to a structure and affects its civil legal status.
Based on their use for commercial and administrative purposes, the following varieties are distinguished:
- office;
- warehouse;
- hotel;
- garage;
- trading;
- industrial.
Attention! There is a classification of commercial real estate into classes from “A” to “D”, depending on the level of quality. Hotel real estate is divided into 14 separate classes.
There is a classification of non-residential objects according to their purpose:
- used to generate income (commercial);
- used to create conditions for generating income (industrial as well as industrial).
The advantages of NEOs include:
- Complete absence of neighbors.
Having such a building you will be your own master;
- Possibility to organize your own parking spaces on the territory adjacent to the OSZ for parking visitors’ vehicles.
Of course, if the free area of land for the NEO allows.
- A very important advantage of NEOs is the presence of their own communications.
Since in other types of buildings, communications are common throughout the building and are usually connected to other rooms.
This threatens that your utility bills will be inflated and you will not be able to do anything.
After all, all losses of water and electricity, even those that occurred through no fault of your own.
Will be extended to all owners of premises that have twin communications.
That is, the neighbors will have a leak, and all non-residential premises connected by communications will pay.
But the main advantage of the NEO is also its disadvantage.
Disadvantage of the non-residential real estate property NEO:
The absence of neighbors is good on the one hand, but expensive on the other.
For example, when a pipe breaks. All repairs will have to be done at your own expense.
Since communications are the property of the owner of the NEO.
Supplying gas or water nowadays is not a cheap pleasure.
For example, gasification of non-residential premises in the Moscow region.
With the supply of a gas pipe from the nearest gas distribution center to the OSZ (the length of the trench and the pipe itself was 500 linear meters). It cost the owner of the building 3.5 million rubles.
And this is far from the maximum price for gasification of non-residential premises within a populated area.
Since everyone around understands what benefits the owner will receive when renting out such a separate building.
Types of non-residential real estate
All non-residential real estate, for convenience, is divided into subtypes that have their own purpose.
The purpose of non-residential real estate is fixed in the property documents as a separate line.
This allows you to avoid confusion when conducting real estate transactions and charging tax on property ownership to owners by the state.
Below are the main ones. Which you encounter every day in your everyday life.
All non-residential real estate objects have their own classification according to their intended purpose and type of permitted use.
Industrial real estate:
These days, real estate is of this type.
It occurs in the form of large industrial complexes located on land plots with an area of 15 - 20 hectares. On the territory of which numerous enterprises are located.
And also in the form of production bases and buildings of restored old factories.
Factories with workshops on their territory. In which raw materials are processed or finished products are produced.
Strategic importance of industrial non-residential real estate
This type of non-residential real estate is rightfully placed first on our list.
After all, industrial real estate is the engine of progress of any state that can ensure its sovereignty and independence.
Thanks to the existing production facilities producing advanced types of weapons. Our country is now able to protect its borders and the peace of its citizens.
After all, many people don’t even understand why funding is still happening. Essentially an outdated and subsidized enterprise.
But this is vital for our country. After all, if our own cars are produced abroad. That is the country on whose territory the automobile plant will be located. In any difficult time for our country. It may simply break the contract and cut off the supply of (even bad and ugly) cars to Russian territory at the most inopportune moment.
All foreign factories producing foreign cars in our country. They can also curtail their activities at the moment and stop producing cars.
We can also be blocked from importing used foreign-made cars at any time.
Therefore, this is not just a domestic auto industry, but a strategically important production for our country.
So it may happen that only this plant will remain with us. And the good news is that “our cars” are still capable of driving.
Which means no matter what happens. Citizens of the country will not be left without cars.
Social and cultural real estate objects:
Real estate objects intended for cultural leisure by citizens. Recently, more and more attention has been paid in large cities of Russia. And budget funds are allocated annually for their construction.
Each district of the city has its own points of attraction consisting of cultural objects and cultural heritage, such as:
- Cinemas;
- Theaters;
- Museums;
- Art galleries;
- Art exhibitions.
Sports properties:
For the sports development of children and maintaining the shape of adult citizens, the following are being built:
- Swimming pools;
- Sports complexes that combine several real estate objects for sports on their territory;
- Stadiums;
- Racing tracks and karting tracks;
- Ski slopes;
- Shooting complexes for sport shooting from various types of weapons and shooting ranges for sport clay shooting.
Communal real estate properties:
This type of non-residential real estate houses employees and equipment that are responsible for landscaping and cleaning the territories of populated areas. And also to maintain a decent standard of living for citizens.
- Buildings housing many workshops for minor repairs and public service.
The so-called “Houses of Public Service”, “Household Services” or Centers of Consumer Services;
- Equipped beaches for swimming;
- Dormitories for visitors;
- Gas, heat and electricity supply facilities for the population;
- Motor transport enterprises;
- Harvesting equipment bases;
- Car service stations and other special premises intended for maintenance and repair of housing and communal services.
Educational non-residential real estate objects:
Non-residential real estate objects of this type accommodate the entire group of educational institutions. Which are engaged in training and advanced training of specialists.
Training of scientists and researchers with doctoral degrees. As well as educational and extracurricular activities.
Such non-residential real estate objects include:
- Buildings of kindergartens and preschool preparatory institutions;
- Schools, lyceums, colleges, gymnasiums or other educational institutions with different modes and forms of education;
- Technical schools, colleges and other vocational schools (vocational schools) that prepare highly specialized specialists;
- Universities, institutes and their branches.
Allowing you to obtain higher education and an academic degree, or defend a doctoral dissertation.
Real estate of this type can occupy huge areas.
On which an entire residential area could easily be located, consisting of several multi-storey buildings.
Which speaks to the importance given to this type of non-residential real estate in any state.
After all, the training of high-quality specialists directly affects the future development of all sectors of the country and the standard of living of society as a whole.
Non-residential real estate objects housing medical institutions:
Doctors working in medical institutions. Located in non-residential real estate objects of this type, they allow citizens to increase their life expectancy and maintain their health.
- Polyclinics and their district branches for the initial examination of citizens;
- Medical centers for the detection and prevention of diseases;
- Hospitals for operating and treating seriously ill patients;
- Oncology centers and dispensaries for the treatment of life-threatening diseases;
- Commercial medical clinics with general practitioners performing simple hardware examinations of patients or other procedures using licensed medical equipment.
They also include separate medical rooms where doctors conduct appointments. Those running a private practice who are engaged in... Mainly by consulting patients.
Attention!
Having trusted treatment in a commercial (private) clinic, people are often left without money and with the same set of diseases that they had before visiting it.
If possible, use public medical institutions or at least those with government participation.
How to save money when buying commercial real estate - 4 useful tips
Expert advice will help you complete a real estate transaction that benefits your own budget.
Tip 1. Avoid buying a property in the center
If you don’t care in which part of the city to buy a property, then buying on the outskirts will provide significant savings.
Choose places with good transport links if you are planning activities for which accessibility is important.
Tip 2: Find the best mortgage rate
You can use a mortgage to buy not only residential properties, but also commercial ones. The main thing is to find a reliable bank that provides this type of service and choose a mortgage program with the lowest rate.
In the next section you will find an overview of banks offering the most favorable conditions for clients wishing to purchase non-residential real estate on credit.
By the way, on our website there is a detailed article on how to buy an apartment with a mortgage.
Tip 3. Participate in promotional offers from the developer
You've probably seen huge billboards on projects under construction with attractive offers from the developer. Development companies regularly publish the same information on their official websites.
Typically, such promotions are carried out at certain stages of building construction. If you manage to take advantage of such offers, you can save from 15 to 25%.
Tip 4. Buy a property in the initial stage of real estate
At the zero stage, any real estate is 30-40% cheaper. Of course, in this case, the buyer risks facing “delayed construction”, bankruptcy of the developer and other force majeure circumstances.
All the more carefully you need to approach the choice of a construction company. Collect all available information about the developer. If a company has been operating on the market for more than 10-15 years and has built dozens of facilities throughout the city, the risk for the buyer is minimal.
